by slappy » Fri May 23, 2008 01:20 pm
I was talking with a potential customer the other day and he had mentioned that his policy was to be non-renewed because of a reckless driving incident with his son. He was suggested by his current agent to put his son on his grandmothers policy via living at her residence even though he is still residing at his current address. This supposedly resolved the non-renewal issue and thus they are fine with the policy. To me this is insurance fraud which was suggested by the agent. What are your thought on this situation, how would you handle with the customer and working up a quote...what would you do?
Posted: Fri May 23, 2008 01:53 pm Post Subject:
It's not really fraud, but certainly misrepresentation of risk. The fact that the agent is involved is incredible. The insured has little to lose if the company were to discover that the son still lives with him. The agent on the other hand is putting his company contract on the line to retain what must be a non-standard insured?
Times must really be tough for that guy.
Also, I can't imagine why that would be suggested instead of placing the son on a nonstandard policy and excluding him from coverage on the parents' policy, which is the right thing to do in such a situation.
Some parents can be really offended at the idea of junior needed to be on a "risk" policy. Sometimes even when it will save big money.
Posted: Fri May 23, 2008 02:01 pm Post Subject:
It's fraud but more importantly, material misrepresentation! There is a good possibility _when_ he submits a claim for this son driving one of his vehicles that his carrier will find out that the son resides in the household and rescind the policy, providing no coverage. The insured then has a perfect E&O claim against the agent. All this for a few dollars commision? I'd say the agent is not too bright. It's also not hard for the carrier to figure out as the son's drivers license will probably still reflect the fathers address (it would be written down on the police report this way).
My recommendation to the father... turn in the son's drivers license, exclude him from the policy (if possible) and don't let the keys out of his sight for one moment. Driving is not a right people have.
It's odd that parents will let their kids do something as stupid as driving reckless, cause an accident and then still allow them to drive like it was nothing. I guess as long as they can lie and get their insurance company to foot the future bills they are okay with it. Course, when the carrier rescinds the policy for the parent lying, the parent is going to be mad at the carrier... not themselves. Also, what signal is the parent sending the kid? I guess the apple does not fall far from the tree.
PS I don't have any kids. I'd make a terrible parent.
[getting off soap box]
Posted: Fri May 23, 2008 02:08 pm Post Subject:
Thank you. Anyone else? I will give my input later.
I have two on the way so I am getting into the parent mentality and that also doesn't make sense to me. But then again we were all that age and did stupid things. The parents should step up and do what is right...which is what my potential customer is working on doing.
Posted: Sat May 24, 2008 02:16 pm Post Subject:
To me this is insurance fraud which was suggested by the agent
ABSOLUTELY IT'S FRAUD!!!!!!!The parents should step up and do what is right...which is what my potential customer is working on doing
Is he? By lying about where the boy lives? Of maybe I read it wrong, and he isn't going to do that..? :?If it were my kid (and I raised three teenagers two that are ours and a friend of my son's)...The boys car would be parked unless and until he could pay for his own policy, and he would be excluded from mine...
Posted: Tue May 27, 2008 08:26 pm Post Subject:
Well this is what is going on...my potential customer is working with me and we are getting him and his wife on their own policy and excluding their son. This will decline coverage for the son. He has talked to his son and they are going to take him off the grandmothers policy and stop lying about the address. The son will be put on his own policy as is the grandmother....the way it should have been.
In terms of the Fraud issue. It is fraud. Check out my blog...http://insuranceandmore.ampminsure.org/ for more info on Insurance Fraud. This is a no brainer and those that were questioning it should study some more. Enjoy.
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