I think Jim eludes to the law of averages when it comes to the insurability of an inspector. If an inspector gets sued three times and either settles or loses in court, the carrier would likely look to drom him/her whenever they could. This happens across the board with insurers (home, auto, etc) So, why would it be any different for an E&O carrier. IN recent years, carriers have also tied one’s credit score to premiums. the theory is that if you have poor credit, you are more lilkely to commit insurance fraud. I’d love to see the research behind this one.
We are at the mercy of the carriers. This goes for ALL carriers and ALL insurances.
As to mediation and arbitration, so long as the process is not opressive, courts have upheld arbitration clauses. Many attorneys simply do not like this, as they cant hide behind motions and procedural mumbo jumbo. The arbiter sets the rules.
I would be curious to know how pre-paid legal services work in the event of a claim to an E&O carrier. IAS is very careful in advising its clients that carry E&O that they need to be mindful of the terms and conditions as set forth in their E&O policy.
Some E&O carriers prefer arbitration, and rightfully so. Prevailing on a technicality as opposed to truly getting to the bottom of a claim sucks for everyone.
So, how can one write a letter, on attorney letterhead, and send it to opposing counsel, when not sanctioned by the carrier? If there is some secret language, or a wink and a nod from the carrier, I’d like to know about it. this would creat an unfair advantage to a company like IAS that colors within the lines and plays by the rules when it comes to the carriers.
I write well crafted letters FOR our members to do with as they like. I NEVER put the writing on IAS letterhead (or my own) as I am not an attorney admitted to the bar in any state.
I am also curious as to how NACHI has singled out ELITE MGA as THE preferred insurance provider for the association.
Regarding your last sentence… I would assume it revolves around money in some way, shape or form. ASHI endorses BRP just the same. Most times when you get the endorsement, from a vendor standpoint, it’s because you offer something in return to whoever is endorsing you rather than the actual quality of the product.
Good point about the credit score as it pertains to auto insurance premiums. I still don’t understand the correlation between the premium for auto insurance and the credit score. I figured it had to do with the insurance company somehow making the connection that a poor credit score results in high accident rate, not the possibility of insurance fraud. I have no clue…