Ok, last time I checked, the loss of common sense was not a Covid symptom. So having that as a base understanding, try and explain a simple concept to me.
It has been a brutal year of adjustments, pivots and directional adjustments. Most likely, you have lost more hair and sleep in one year than most lose in a full season of watching your favorite NFL Team. Yet somehow you have kept your agency open, operating, even eking out a small but well-deserved profit. Good On You!
Administrative Fines for Insurance Agencies
So, with that small profit now sitting in your rainy-day operating account, understanding you just worked hard to get it…why are you so willing to turn right back around and give it away for silly, no future “grow the business” reasons?
But that’s exactly what happens with administrative fines when licensing and appointments are not done correctly AND maintained with State Licensing Regulators.
Enter COEUM Audit
Designed as a simple tool to identify, query and list the most common areas of administrative faux pas for immediate update, Audit presents a proactive strategy for warding off self-inflicted fines. With an ability to look for identifiable missteps, CEOUM Audit delivers on such oversights as:
- Misaligned or Non-Existent DRLP’s
- Orphaned Agent Appointments for Terminated Agents
- Producer Code Registrations
- Continuing Education Compliance
With all of that in mind, how important could tidying these things be? After all, when there are so many agencies in any given State, who would notice? Well how about these guys who wish they could do a few things differently:
- The independent agency which had six (6) DRLP’s listed in one office. Not bad until the $2,500 per excess DRLP fine showed up. That didn’t feel so bad when as part of a Complaint and Misrepresentation review when all six (6) DRLP’s were fined $10,000 each. Sure made this an even bigger pain.
- The Southern agency which suddenly found that an agent who had left in 2013 was still writing policies against the Agency Producer Codes and Appointment Listings. I’m sure the $500,000 annual book of business that leaked out was not all that important!
- The Midwest agency that lost track of the Continuing Education compliance for an entire office and was forced to close for 30 days until all requirements were met AND an Administrative Compliance hearing held. Let’s see, four Producers…twenty-two (22) business days…how much could that of loss of business hurt in addition to the $5,000 fine per Agent?
Being swamped with work and stress due to Covid is well documented. The death of common sense is not…especially when something as little as $500 can protect you. Protection against future accidents…sounds a lot like the very basis of what insurance is supposed to do.
COEUM Audit…proving common sense still lives. www.coeum.com/audit4agencies.
If your insurance agency is concerned about reducing its risk for fees related to audits, then we encourage you to schedule a complimentary demo of COEUM audit today!