I researched the Louisiana Department of Insurance web-site and found no information relative to excess flood insurance being a product available to customers. It is possible this agent did not have that knowledge either. You will note the article indicates that some insurance carriers will not underwrite the excess coverage unless they write the homeowners policy. It is unreasonable to expect an agent to turn away business they could underwrite. I would be curious to learn (how many) of the 5 carriers who underwrite the excess flood insurance would have accepted this risk without underwriting the homeowner policy. The excess flood insurance policy has such a limited market/underwriting that you would be hard-pressed to find an insurance adjuster who has adjusted one of these claims. I have no particular fondness or affection for State Farm but I do not believe it was the agents responsibility to refer the customer to another agency. These homeowners are sophisticated consumers who had to have a relationship with another broker by virtue of their need for medical malpractice insurance. If this was a concern of theirs they should have at least asked that broker to research or review their coverage with State Farm to see if it could be improved upon. They accepted and purchased the product presented to them. That product is being serviced as prescribed (it would appear as that is not a complaint). They got what they paid for…
Thanks,Kathi– It does not seem reasonable that the highly specialized malpractice broker should have any involvement in the process of advising/obtaining additional flood cover.These homeowners may be \”sophisticated consumers\”,but it would be a difficult defence for State Farm to assert that the insured should have known more about this insurance than his/her State Farm agent.Departments of Insurance do not,generally,require information about\”non-admitted\”excess/surplus lines carriers , Best Regards.
Another good reason to buy your insurance from an independent agent. I have more than one excess flood carrier. Very few buyers because of cost, if dwelling is in a very bad flood zone.
Last time I checked, it was against State Farm Agent\’s contracts to refer customers to another insurance agency for any type of insurance, regardless of whether State Farm is able to underwrite it or not.
The agent can be the best agent in the world, but there is a difference between OBLIGATION to refer and a COURTESY because you\’re \”a good agent.\” I don\’t think it\’s fair to say you\’re opening yourself up to lawsuits when a customer inqures about a product and the State Farm agent says \”I\’m sorry, we don\’t sell that here.\” In which case, if the insured was REALLY worried about buying the product, he could have took the initiative to look for the excess policy on his own. It is not the resonsibility of the State Farm agent to be the customers\’ personal insurance shopper for them. State Farm agents have an obligation to sell what State Farm offers, not automatically know what every single other market exists in Louisiana.
Now, I do happen to know, because I am a good agent, that Pacific Specialty Insurance Company sells excess flood insurance in Louisiana without the requirement of insuring your home with them. BUT, only independent agents and Allstate agents are allowed to sell through them. So, why would State Farm agents know this, though? Considering Allstate is the second largest insurer of homes in Louisiana, I don\’t think it\’d be unreasonable to the insured, in his quest to find a product suitable for his home, to call an Allstate agent and find out on his own that there is something available. But why would the State Farm agent do this for the insured? He can\’t, it\’s against his contract. Also, as soon as something goes south with this new policy he was referred to by State Farm, there\’s another E&O lawsuit for the State Farm agent. And he, now, doesn\’t have any control over the policy at all!
SO, in other words, No, the State Farm agent is just that, and people know that they\’re only allowed to write through State Farm Group, so they should have found themselves a new policy.
The knew they were underinsured, because they already stated they asked about an excess policy. So, how long have they known they were underinsured? They knew and it\’s their own fault they were underinsured.
Agents who are siding with the insured, though, you\’re one of the reasons E&O rates are skyrocketing. People shouldn\’t be supporting these types of lawsuits.
How could 2 financially sound, educated adults that are licensed to practice medicine think that the coverage they had was adequate. Further, why would they not shop around and make sure this was their only option. We need to stop trying to make excuses and justify irresponsible behavior (of the buyer) and stop trying to find blame with SF or the agent.
No one is accountable for their own actions any more-this is like saying that if you got killed in a car accident and you were driving a compact/small car it is the car manufacturers and dealers fault because they didnt sell you a bigger car.
The world of Victimhood is alive and well – good thing I am not going to be on the jury – they would get nothing.
to HW and others—Something you may not have been exposed to in Ins.101 is that most E&O claims are against agents.Courts do not support the definition of agent and broker outside of the insurance business. Remember,the contractual agreement is between agent and company,hence it does not waive the agent\’s duty to his client,the insured.The insured retains all of his/her rights.
I can\’t help but think that the good doctors knew darn well that they were underinsured but were taking their chances. They are just using the \”non-informed\” argument to suit (pun intended) their purposes.
I like to make sure that my \”average cross section of American Society includes lot of retired, unemployed, bored, uneducated and or fringe members of society.
This means all Insurance, Finance, Law Enforcement, Military and Corporate execs automaticly excluded.
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Good file clerks are hard to come by these days.
I researched the Louisiana Department of Insurance web-site and found no information relative to excess flood insurance being a product available to customers. It is possible this agent did not have that knowledge either. You will note the article indicates that some insurance carriers will not underwrite the excess coverage unless they write the homeowners policy. It is unreasonable to expect an agent to turn away business they could underwrite. I would be curious to learn (how many) of the 5 carriers who underwrite the excess flood insurance would have accepted this risk without underwriting the homeowner policy. The excess flood insurance policy has such a limited market/underwriting that you would be hard-pressed to find an insurance adjuster who has adjusted one of these claims. I have no particular fondness or affection for State Farm but I do not believe it was the agents responsibility to refer the customer to another agency. These homeowners are sophisticated consumers who had to have a relationship with another broker by virtue of their need for medical malpractice insurance. If this was a concern of theirs they should have at least asked that broker to research or review their coverage with State Farm to see if it could be improved upon. They accepted and purchased the product presented to them. That product is being serviced as prescribed (it would appear as that is not a complaint). They got what they paid for…
Thanks,Kathi– It does not seem reasonable that the highly specialized malpractice broker should have any involvement in the process of advising/obtaining additional flood cover.These homeowners may be \”sophisticated consumers\”,but it would be a difficult defence for State Farm to assert that the insured should have known more about this insurance than his/her State Farm agent.Departments of Insurance do not,generally,require information about\”non-admitted\”excess/surplus lines carriers , Best Regards.
Another good reason to buy your insurance from an independent agent. I have more than one excess flood carrier. Very few buyers because of cost, if dwelling is in a very bad flood zone.
Last time I checked, it was against State Farm Agent\’s contracts to refer customers to another insurance agency for any type of insurance, regardless of whether State Farm is able to underwrite it or not.
The agent can be the best agent in the world, but there is a difference between OBLIGATION to refer and a COURTESY because you\’re \”a good agent.\” I don\’t think it\’s fair to say you\’re opening yourself up to lawsuits when a customer inqures about a product and the State Farm agent says \”I\’m sorry, we don\’t sell that here.\” In which case, if the insured was REALLY worried about buying the product, he could have took the initiative to look for the excess policy on his own. It is not the resonsibility of the State Farm agent to be the customers\’ personal insurance shopper for them. State Farm agents have an obligation to sell what State Farm offers, not automatically know what every single other market exists in Louisiana.
Now, I do happen to know, because I am a good agent, that Pacific Specialty Insurance Company sells excess flood insurance in Louisiana without the requirement of insuring your home with them. BUT, only independent agents and Allstate agents are allowed to sell through them. So, why would State Farm agents know this, though? Considering Allstate is the second largest insurer of homes in Louisiana, I don\’t think it\’d be unreasonable to the insured, in his quest to find a product suitable for his home, to call an Allstate agent and find out on his own that there is something available. But why would the State Farm agent do this for the insured? He can\’t, it\’s against his contract. Also, as soon as something goes south with this new policy he was referred to by State Farm, there\’s another E&O lawsuit for the State Farm agent. And he, now, doesn\’t have any control over the policy at all!
SO, in other words, No, the State Farm agent is just that, and people know that they\’re only allowed to write through State Farm Group, so they should have found themselves a new policy.
The knew they were underinsured, because they already stated they asked about an excess policy. So, how long have they known they were underinsured? They knew and it\’s their own fault they were underinsured.
Agents who are siding with the insured, though, you\’re one of the reasons E&O rates are skyrocketing. People shouldn\’t be supporting these types of lawsuits.
And, Kathi Freeman, you\’re about right, too.
How could 2 financially sound, educated adults that are licensed to practice medicine think that the coverage they had was adequate. Further, why would they not shop around and make sure this was their only option. We need to stop trying to make excuses and justify irresponsible behavior (of the buyer) and stop trying to find blame with SF or the agent.
No one is accountable for their own actions any more-this is like saying that if you got killed in a car accident and you were driving a compact/small car it is the car manufacturers and dealers fault because they didnt sell you a bigger car.
The world of Victimhood is alive and well – good thing I am not going to be on the jury – they would get nothing.
to HW and others—Something you may not have been exposed to in Ins.101 is that most E&O claims are against agents.Courts do not support the definition of agent and broker outside of the insurance business. Remember,the contractual agreement is between agent and company,hence it does not waive the agent\’s duty to his client,the insured.The insured retains all of his/her rights.
I can\’t help but think that the good doctors knew darn well that they were underinsured but were taking their chances. They are just using the \”non-informed\” argument to suit (pun intended) their purposes.
Fed up.
Don\’t worry. You wont be on the jury.
I like to make sure that my \”average cross section of American Society includes lot of retired, unemployed, bored, uneducated and or fringe members of society.
This means all Insurance, Finance, Law Enforcement, Military and Corporate execs automaticly excluded.
Sounds like another job for retro insurance.