As we continue to refine our underwriting procedures to better address ever evolving market conditions, we are announcing the following changes:
Elimination of Unbound New Business Referral Option in iBIS effective 12/1/2011: We will no longer accept unbound new business submissions. Any applications received by Underwriting will now be bound and issued subject to your agent’s binding authority. We are taking this action in response to the significant number of unbound submissions Underwriting reviewed and never issued. Elimination of the unbound option will help us reduce the high costs of non-issued applications and help us focus on revenue generating activities.
The new verbiage displayed on the Agency Feedback screen will read: “Allow Underwriter to Issue (Bound Submission- Subject to Agent’s Binding Authority).” We are also eliminating the “Rush” option since applications will no longer be returned to the agency to issue. If a particular risk is not within your binding authority or requires Underwriting approval, we ask you communicate with your respective Underwriter prior to binding coverage.
Elimination of Monthly Direct Bill and Monthly Recurring Credit Card on New Business effective 1/1/2012: If either Monthly Direct Bill or Monthly Credit Card payment plans are selected in iBIS, an error will be returned. Monthly EFT will remain as the only available monthly bill option for new business. We believe this change necessary due to a higher cancellation rate and loss ratio with the direct bill and credit card monthly pay options. Monthly direct bill and monthly recurring credit card will continue to be an option for existing business. We will not transfer any existing policies to monthly direct bill or monthly recurring credit card.
As we continue to move forward through 2011 and into the New Year, your continued loyalty to Frankenmuth Insurance is greatly appreciated. As always, should you have any questions, comments or concerns, please feel free to contact your Field Manager, Underwriter or me.
