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Old 11-28-2016, 08:02 AM
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Does an insurance agency have ANY control over the premiums charged by the Insurance Company?
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Old 11-28-2016, 08:04 AM
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Doesn't seem so. Our agent goes out for bids and think they get paid a commission instead of marking it up.
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Old 11-28-2016, 08:18 AM
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Originally Posted by David B. View Post
Doesn't seem so. Our agent goes out for bids and think they get paid a commission instead of marking it up.
X2. I do think our agent earns his money but don't think he has any control over the figures.
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Old 11-28-2016, 08:27 AM
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The agent does not have direct control over premiums.

However, I regularly negotiate insurance premiums on behalf of my clients. The larger the account, generally, the more flexibility I have on negotiation.

Feel free to PM me if you have any specific questions.
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Old 11-28-2016, 08:28 AM
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Actually most commercial policies can receive up to a 40% credit if the insurance company feels the business is a better risk then others. A good agent can have some say if the company gives the business any credits toward their premiums. For example. Agent shows they have no prior losses, office has an alarm, they make daily deposits, etc...
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Old 11-28-2016, 08:47 AM
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Yes an agent can influence prices. Like fishingfun said, commercial lines underwriters do have leeway on pricing vs. personal lines which are generally filed, fixed rates.
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Old 11-28-2016, 09:09 AM
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My agent always negotiates with our carrier and gets competing bids. The same applies with the agent for our health insurance.
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Old 11-28-2016, 09:12 AM
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Yes they have say so in premiums.. They get paid based on what they sell and how they rate your business.
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Old 11-28-2016, 09:17 AM
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Originally Posted by amofgreenville View Post
Yes they have say so in premiums.. They get paid based on what they sell and how they rate your business.
This is not true. As I noted before with most commercial policies the company can give credits which can reduce the premium. All the agent can do is ask the company for the credits.
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Old 11-28-2016, 09:24 AM
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We are audited yearly by the actual insurance company, not agent, and our final rates are based on the actual numbers.
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Old 11-28-2016, 09:39 AM
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Originally Posted by sand key View Post
Does an insurance agency have ANY control over the premiums charged by the Insurance Company?
Control...no.
Influence...yes.
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Old 11-28-2016, 10:23 AM
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Originally Posted by fishingfun View Post
This is not true. As I noted before with most commercial policies the company can give credits which can reduce the premium. All the agent can do is ask the company for the credits.
i'm thinking about homeowners insurance.. for instance.. I've had my homeowners with a local independent agency for a few years now.. Last year a buddy of mine went to work for them.. I asked him how I could get the premium lowered, he said that he went in and changed the rating from a "10 to a 3" and my premium went down by about 40%.. same company and same exact coverage just lowered the rating.. I would think it would work the same for business insurance.. I switched companies by the way; told them that I should have had a lower rating to begin with.
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Old 11-28-2016, 12:05 PM
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Originally Posted by amofgreenville View Post
i'm thinking about homeowners insurance.. for instance.. I've had my homeowners with a local independent agency for a few years now.. Last year a buddy of mine went to work for them.. I asked him how I could get the premium lowered, he said that he went in and changed the rating from a "10 to a 3" and my premium went down by about 40%.. same company and same exact coverage just lowered the rating.. I would think it would work the same for business insurance.. I switched companies by the way; told them that I should have had a lower rating to begin with.
He probably changed your fire rating which if came up in an audit the company would put you back in the correct fire district/distance to a hydrant and fire your buddy.
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Old 11-28-2016, 12:45 PM
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Originally Posted by amofgreenville View Post
i'm thinking about homeowners insurance.. for instance.. I've had my homeowners with a local independent agency for a few years now.. Last year a buddy of mine went to work for them.. I asked him how I could get the premium lowered, he said that he went in and changed the rating from a "10 to a 3" and my premium went down by about 40%.. same company and same exact coverage just lowered the rating.. I would think it would work the same for business insurance.. I switched companies by the way; told them that I should have had a lower rating to begin with.
As a licensed agent I can tell you right now unless he found that you were wrongly classified as a ten instead of correctly a three I would never have done that. Are you within a thousand feet of a hydrant and or within five miles of a fire station? If no to both you should be a 10 and not a three 95% of the time. Some carriers have some leeway but for the most part those are the two major items that determine your fire rating. Not too mention if he ever gets audited he can get his wrist slapped pretty hard.

For commercial accounts I can help influence the numbers from the underwriters but I don't get to have too much direct say. I won't quote someone who does not get me current declaration pages with what they are currently paying. We have a much better chance of beating an existing quote if we know what you're existing premiums are.

Underwriters are much more likely to max out credits on a company with clean loss history where they know the magic number that they need to hit. The ones that I deal with don't like shooting blind.
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Old 11-28-2016, 01:39 PM
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Originally Posted by Poppin cork View Post
As a licensed agent I can tell you right now unless he found that you were wrongly classified as a ten instead of correctly a three I would never have done that. Are you within a thousand feet of a hydrant and or within five miles of a fire station? If no to both you should be a 10 and not a three 95% of the time. Some carriers have some leeway but for the most part those are the two major items that determine your fire rating. Not too mention if he ever gets audited he can get his wrist slapped pretty hard.

For commercial accounts I can help influence the numbers from the underwriters but I don't get to have too much direct say. I won't quote someone who does not get me current declaration pages with what they are currently paying. We have a much better chance of beating an existing quote if we know what you're existing premiums are.

Underwriters are much more likely to max out credits on a company with clean loss history where they know the magic number that they need to hit. The ones that I deal with don't like shooting blind.
Finally an intelligent answer
P.S. If your agent changed your fire classification and you have a claim, they will probably require the difference in premiums be repaid prior to paying your claim.
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Old 11-28-2016, 01:48 PM
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Originally Posted by Poppin cork View Post
As a licensed agent I can tell you right now unless he found that you were wrongly classified as a ten instead of correctly a three I would never have done that. Are you within a thousand feet of a hydrant and or within five miles of a fire station? If no to both you should be a 10 and not a three 95% of the time. Some carriers have some leeway but for the most part those are the two major items that determine your fire rating. Not too mention if he ever gets audited he can get his wrist slapped pretty hard.

For commercial accounts I can help influence the numbers from the underwriters but I don't get to have too much direct say. I won't quote someone who does not get me current declaration pages with what they are currently paying. We have a much better chance of beating an existing quote if we know what you're existing premiums are.

Underwriters are much more likely to max out credits on a company with clean loss history where they know the magic number that they need to hit. The ones that I deal with don't like shooting blind.
I have a fire hydrant in my front yard and fire station about a mile away. I understand the premise though since you explained it..thanks
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Old 11-28-2016, 01:51 PM
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Originally Posted by David B. View Post
We are audited yearly by the actual insurance company, not agent, and our final rates are based on the actual numbers.
An audit is an audit. I think the OP was asking if an agent can control rates. For instance, are you being audited on a $10 work comp rate or an $8 work comp rate that the agent negotiated/applied? We have credits we can apply in house without even contacting the underwriter.
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Old 11-28-2016, 01:52 PM
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I assume he wont be working there long if changing PPC from 10 to 3 just because. These guidelines are in place for a reason and if you were not rated properly and your house burned down, I would not want to be that agent as they can go after his E&O insurance.
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Old 11-28-2016, 02:02 PM
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Originally Posted by doobs41378 View Post
I assume he wont be working there long if changing PPC from 10 to 3 just because. These guidelines are in place for a reason and if you were not rated properly and your house burned down, I would not want to be that agent as they can go after his E&O insurance.
It's actually hard to change protection classes as technology has increased to the point the protection class will show as soon as you enter the address. Our main issues are the split classes based on the distance to fire hydrant. Company says 9, we say 6, and then have to prove it. But, in our area I am seeing less and less of split classes
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Old 11-28-2016, 02:08 PM
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NJ agent here... Yes, PC classes do change, and I really hope the agent didn't just change it for the sake of saving you money. A change like that would garner an inquiry from an Underwriter requesting proof.

Its the similar to me saying, "Hey, I saved my buddy money on his car insurance by changing his son's birth year from 1999 to 1979..."
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