Communication situation

I always read Barry Zalma's “Down to Cases” columns as theyusually are both concise and interesting. In his May article,“Cancellationto Litigation,” he wrote “the agent must have a system in placeto personally contact an insured who fails to pay premium.” Inteaching E&O courses, we always advised agents not to have sucha process because:

1. If you have a pattern of calling and you miss once, your gooseis cooked if the policy lapses and a claim occurs
2. It's a poor use of finite resources in an agency to constantly“babysit” insureds when they already have received written noticefrom the carrier
3. It's dangerous to have categories where large clients arecontacted but smaller ones aren't.

Do you have a response?
Philip Lieberman, CPCU, CLU
Caldwell, N.J.

Zalma response: Yes, that particular caseinvolved a situation where the insured had changed his location andthe notice of cancellation did not reach the insured because itwent to the old address.

I think it is best, when a notice of cancellation fornon-payment is received, for an agent or broker to determine fromits insured whether he has replaced the coverage and should cancelat his choice rather than have the stigma of a cancellation fornon-payment; or if he intended to pay and just forgot or did notget the renewal billing.

Insurance is a service business; you cannot ignore theobligations to provide service. The agent who did not call was suedfor E&O because it failed to provide the service promised. Idon't want categories other than that an agent should alwayscontact an insured where the policy is canceled fornon-payment.

Agents should not “babysit” insureds as you put it, but theyshould not lose clients, and commissions, because they failed tomake phone calls.

Calming advice

Thank you for the editorial “JustBreathe” in the August 2011 issue of American Agent &Broker.

With everything you mention in terms of bad economic news,personal demons and checking up on work at the office on yourlaptop while on the mini vacations (the only ones we can affordthese days), fearing that you may not have a job when you get back,is no way to live.

You're right—life is too short. After your editorial I just tooka good deep breath! I forgot to breathe for the last 2 years. Ineeded to hear that message this Saturday morning from you. I hopethat some of the other readers and subscribers of AA&B starttaking the time out to “just breathe.”
Robin Woodley,
AIS Loganville, Ga.

Thanks so much for reminding us all to take the time to justbreathe in response to Maureen Wall Bentley's passing. While sodifficult to find the opportunity in this particular challenge,your words captured the essence of life, simplicity and gratefulappreciation.
Lloyd D. Yavener
Harrisonburg, Va.