Kickbacks for insurance agents?

As I’m not a member, does anyone know Florida NACHI’s stand on this public deception? Furthermore, have they issued a formal response condemning the action of home inspectors paying kickbacks to insurance agents for inspection leads?

If so, would someone post it here, if not then why not? Also, could someone please post FABI’s response.

To me this is something which might reunite the various factions operating within the state under one umbrella for a worthy cause.

Thanks.

Jim Bushart claims:

Huh? That revision could only occur if I was dead… and I’m still alive. Total nonsense. Everyone can read #3, #7 and #8 for themselves: www.nachi.org/Code_of_ethics.htm

Steve, I’m never too proud to copy. If FABI has a position statement on this already, please post it. Perhaps we can just sign on to it. It would be better if we had a little industry unification on this issue and there is no sense in reinventing the wheel.

Any type of bribery and collusion is unethical by definition and should be banned under our Coe. Dancing around the issue is weak. We don’t bribe and do just fine, if you need bribes to compete , then you suck.

If FABI already has a position statement on this, let’s just sign on to it. I know the leadership at FABI and they will welcome our support.

Right. :wink:

Glad to see you take a stand on this, Nick. It’s just as wrong for members to pay kickbacks as to be paid kickbacks.

Tom, I have heard the term that nice guys finish last. It may also be true that licensed home inspectors are irrelevant to the WCE’s-------for now. I agree that the practice of kickbacks for any kind of inspection referral should be illegal. I will continue to work for that to happen. I believe that it would be easier to achieve that goal if all Professional Associations were on board and supported the prohibition of kickbacks of any kind. I also believe that I am on the morally and ethically correct side of this issue. We can debate all we want but understand that my position on this issue will not change.

Steve … I think you may have better ammunition in your fight if you were to involve the Florida Department of Insurance.

The agent has a fiduciary duty to the insurance company that he represents and his selection of an inspector based on his willingness to pay a kickback is not consistent with his duty to protect the financial interests of his client. In fact, it is a conflict of that financial interest.

Have you tried that approach?

Not only do I agree, but I was here back at the beginning when NACHI would be the first to do whatever it takes to help expose inspectors who were kicking back real estate agents for leads. I believe NACHI was the first to go public, and all of the other HI organizations followed suit.

The other way this might be attacked is by having the OIR prohibit insurance agents from receiving kickbacks from home inspectors for insurance leads.

Joe,

The OIR does not regulate insurance agents. OIR only regulates insurance companies. Insurance agents are regulated by the Department of Financial Services. But you are on the right track. I think all inspectors that support the prohibition of kickbacks to insurance agents for referrals of insurance related inspections should file a complaint with the OIR as well as with the Department of Financial Services. If many people raise this issue, it may force the OIR and Dept. of Financial Services to take a serious look at the issue.

Good plan, also the faia should be put record regarding this. Irregardless, this association should immediately ban bribery for all types of inspections.

Staff is getting me a meeting with them.

For those of you who do not know Steve he is one smart guy.

I have never ever seen him ask a question and not have three steps planned ahead, no matter the answer. His true calling was to be a lawyer in my opinion.

It is funny how agencies at state levels give answers and then are haunted by those answers, legally.

I would think that through a little bit first. Until this is reversed, you would be putting the NACHI members in the same boat as FABI members find themselves in now. Unable to compete with the “other” entities. Which, if you ask me, was the goal all along.

Be Honest and make money !
However , My integrity will be my Standard .
It will be in the forefront of everything I do.
I sleep soundly every night.

You guys can sign on to anything you want , But if someone is doing me a good honest favor , I will reward them! That’s my choice !

Roy Lewis

Roy,

Your honesty is commendable, but I believe it unwise to to admit to rewarding those who provide you with leads on an open message board. I can predict there will be people who will attempt to make home inspectors the scapegoats. Be careful with who you are dealing with as I wouldn’t be surprised to see a few home inspectors involved in a media sting. With all the pressure on Citizens to maintain rates a home inspector sting might take some of the heat off of them.

To me this is just another client fidelity issue which needs to be ethically resolved.

Eric is correct. We need to end the practice state-wide first, not just at InterNACHI.

Furthermore, this is a bit outside of our industry (it appears to be a practice between insurance agents and people not licensed as home inspectors). So although we might publicly support a certain position, we will unlikely make a change to our COE.

It’s ethical … or it is not ethical … for a member to pay/accept kickbacks, Nick. Will it be your position that non-members outside of the industry should be held to a higher standard that members within the industry you are representing?

Another HI not understanding Florida. If home inspectors do not do the insurance inspections, the contractors do and then take over home inspection market. Most people do not understand how large this is. We have to compete or loose it all. This kickback scam needs to stop.