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Insurance question

Discussion in 'Business Fundamentals' started by snoway63, Nov 14, 2013.

  1. snoway63

    snoway63 Senior Member
    Messages: 344

    Im in NY and got my insurance on October 31 which I put half down and there contract said balance due in sixty days, now today I get an invoice telling me balance is due on November 19th, what happened to the contract.
    what would you guys do I have no problem paying the balance but that wasn't what the contract I signed said.
    So I guess insurance companies think they can change the rules just because we need them
    Any input greatly appreciated
     
  2. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Wait for the 2nd notice.
     
  3. Ben/Insurance

    Ben/Insurance Sponsor
    Messages: 156

    We insurance agents have to pay carriers in full within 30 days so typically we ask for 30% down (to cover the earned premium in the event of a cancellation) and then we bill the client for the balance due payable within 30 days. That's pretty much industry standard. I know of no carrier that will wait 60 days to get paid. If it goes over 30 days they generally issue a cancellation notice. You really don't want that to happen so I would pay it now. None of this applies however, when the premium is 100% fully earned. Then we need full payment in full up front.
    Ben/Insurance
     
  4. snoway63

    snoway63 Senior Member
    Messages: 344

    It is a fully earned policy and i questioned why only fifty percent down and she said thats what contract says balance due in 60 days so i signed and now i get a bill due by the 19th they havent sent me my policy yet but i do have my certificate already
     
  5. Ben/Insurance

    Ben/Insurance Sponsor
    Messages: 156

    If it's fully earned, as it stands now your agent is on the hook for the full premium to the carrier if you decide to run that's why they need your money now. Forget the certificate. Ask them for a "binder" indicating that the policy (I assume it's a GL policy) includes snow removal coverage. Protect yourself.
    Ben/Insurance
     
  6. snoway63

    snoway63 Senior Member
    Messages: 344

    I gave them the 50 percent down with the binder thats where it said balance due in 60 days and yes it is gl for snow plowing only just odd they now want it all when binder said second half i 60no problem paying it just dont like the fact they surprised me with it out of the blue if they goofed then they should tell me that