I found it quite interesting how IL and WI insurance departments have allowed this. Carriers battle insurance departments often for the smallest endorsements or rates changes to become more competitive or protect the assests of policy holders. I would think that carriers and agents should be quite upset with the insurance departments. In many states it is illegal to steer a risk the way this is being done. Apparently these insurance department heads were asleep. Consumer protection groups should be flipping out as well. I follow these posts for the Spitzer information, I am not an agent but a prior company employee and now an investor.
The practice of the marketing company seems much like an agent, how was this missed… how do they earn… are they licensed, … are they registered as a buying group… or are buying groups even allowed in IL and WI ?
Also as per another post, I also know that this is not new it has been done in europe for years, so much for dreaming it up.
As a licensed insurance professional in Florida, if I sold “free” mortgage life insurance with every homeowners policy I WOULD BE BREAKING THE LAW FOR “SLIDING” (deceptively selling “free” insurance) and would certainly have my license revoked. With good reason, this is not just a creative marketing campaign, but a deceptive scheme… “FREE INSURANCE”?
It would seem that the same regulation that applies to licensed insurance professionals, does not apply to VW CAR SALESMEN. Truly amazing!
I was with a major carrier, a piece of the rock, when they offered free homeowners for a yr in Minn. when you bought your home from a realtor affiliate. It bombed, no cross sales for the auto and after a yr., there was little retention. nice try.
As I understand insurance law and regulation this cannot be legal. You cannot give away “free” insurance, there must be compensation exchanged and it must be the filed rate as approved by each state.
This is just an incentive to pay for overpriced vehicles. Personal insurance service has withstood the test of the internet wave. Every banker I have talked to hates having to deal with any P&C insurance “projects” due to their complexity and time involvement.
Great! First banks (who certainly do not entisce mortgage applicants to buy insurance with mortgage offers) and now Car Dealerships. What’s next, the local gas station. Perhaps Spitzer should concentrate his efforts into enforcing the rebating laws.
This is perfectly legal. Here\’s why: Rebating prevents agents from discounting or giving away \”free insurance.\” All that is happening in the case of VW is that VW is paying for the first year of insurance that is sold through Nationwide Insurance. The agents are not discounting the insurance. There is simply a different person than the insured paying for the insurance… THIS HAPPENS ALL THE TIME…. LEGALLY
I thought Nationwide was a captive Company. They are not competitive with their own Agents to write auto, but they out writing personal auto insurance direct! Wow – that doesn\’t seem right!
We have updated our privacy policy to be more clear and meet the new requirements of the GDPR. By continuing to use our site, you accept our revised Privacy Policy.
I can’t help but wonder what the loss ratio will be on this book of business. How was the price charged to the automaker decided?
I found it quite interesting how IL and WI insurance departments have allowed this. Carriers battle insurance departments often for the smallest endorsements or rates changes to become more competitive or protect the assests of policy holders. I would think that carriers and agents should be quite upset with the insurance departments. In many states it is illegal to steer a risk the way this is being done. Apparently these insurance department heads were asleep. Consumer protection groups should be flipping out as well. I follow these posts for the Spitzer information, I am not an agent but a prior company employee and now an investor.
The practice of the marketing company seems much like an agent, how was this missed… how do they earn… are they licensed, … are they registered as a buying group… or are buying groups even allowed in IL and WI ?
Also as per another post, I also know that this is not new it has been done in europe for years, so much for dreaming it up.
As a licensed insurance professional in Florida, if I sold “free” mortgage life insurance with every homeowners policy I WOULD BE BREAKING THE LAW FOR “SLIDING” (deceptively selling “free” insurance) and would certainly have my license revoked. With good reason, this is not just a creative marketing campaign, but a deceptive scheme… “FREE INSURANCE”?
It would seem that the same regulation that applies to licensed insurance professionals, does not apply to VW CAR SALESMEN. Truly amazing!
I was with a major carrier, a piece of the rock, when they offered free homeowners for a yr in Minn. when you bought your home from a realtor affiliate. It bombed, no cross sales for the auto and after a yr., there was little retention. nice try.
As I understand insurance law and regulation this cannot be legal. You cannot give away “free” insurance, there must be compensation exchanged and it must be the filed rate as approved by each state.
This is just an incentive to pay for overpriced vehicles. Personal insurance service has withstood the test of the internet wave. Every banker I have talked to hates having to deal with any P&C insurance “projects” due to their complexity and time involvement.
So I ain’t worried!
Great! First banks (who certainly do not entisce mortgage applicants to buy insurance with mortgage offers) and now Car Dealerships. What’s next, the local gas station. Perhaps Spitzer should concentrate his efforts into enforcing the rebating laws.
i just saw your tv comm.for yor mindr ur fast . if you think this is going to get any one to buy a car you are out of your mind.
This is perfectly legal. Here\’s why: Rebating prevents agents from discounting or giving away \”free insurance.\” All that is happening in the case of VW is that VW is paying for the first year of insurance that is sold through Nationwide Insurance. The agents are not discounting the insurance. There is simply a different person than the insured paying for the insurance… THIS HAPPENS ALL THE TIME…. LEGALLY
I thought Nationwide was a captive Company. They are not competitive with their own Agents to write auto, but they out writing personal auto insurance direct! Wow – that doesn\’t seem right!