Binding Insurance Policies Overview
Hunter Nelson walks through binding commercial insurance policies step by step, from collecting down payments to filing required documents like COIs and ID cards. He warns never to bind without confirmed payment or the correct effective date and named insured, and flags carrier quirks with Progressive, 10-4, and CoverWELL.
Chapters
All right, so let's go over binding here. I'm going to do two steps of this because there's like the right away step and then there's kind of like a checkup step on this. So right away this, the things I'm going to go over is payments on it. Brokerage checklist. If you're buying it through brokerage, current premium finance agreement, once you're done, you're going to send out COIs, ID cards, you know the proof of insurance, ask if there's any lien holders, anything commission agency Zoom and blah blah, blah.
Okay.
So this is a post that I've got the portal here. Everybody should be checking this thing anytime we're finding anything.
Okay.
So if we're going through a direct carrier, a direct carrier is progressive, Geico 10 4, Berkshire Midwest Family Mutual Cover Whales, kind of not really direct Care. They're technically an mga, but they almost act like a direct carrier because their system is so slick. Okay, so going over this. When you are getting ready to buy into policy, once you have received the quotes present, check Agency zoom for notes left by the COR and make a list of anything that you need to talk to the insured about. So you're gonna, you're just gonna make sure you got basically all your ducks in a row before you go on present a quote. Quote. When you're presenting a quote, you know you're going to present it. Make sure you understand the policy, make sure you understand the quotes and that you know basically everything there is to know about it. Make sure you obviously know how to bind it and what the steps are to that. And I'll go over the different steps. Some of these popular carriers we have not going to go over all 100 of them.
So make it make a checklist.
This checklist should at least consist of, you know, if there's any underwriting questions that really should be known ahead of time and should be taken care of before you bind. We 100% are going to need payment information on any direct carrier. When we go through and bind a policy, it is going to ask for payment information. We put the payment information in there and then it will they the direct carrier will pull the payments and go throughout that. So if I'm looking at progressive, this is kind of tough to show because like have a policy plan.
But if I'm going to go through.
Progressive, I'm going to have mvrs already ran. I'm going to have everything ready to go here and it's just going to go through and Just make sure that, that it's basically going to ask me to double check the questions and that's going to ask me how would I like to pay and what. And obviously. Well, let me back up here real quick. Always, always, always make sure the effect of date on the policy is correct before you go ahead and bind. That was one thing that will screw you. The named insured and effective date can never be changed. That stuff is that you'll have to rewrite the policy if you check the effective date or the name insured. So don't do that also state. But I mean really if you're in the wrong state, that's pretty big screw up anyway. Then you're going to go in and enter the payment information. Almost everybody will only take eft, which is account, account number and routing number. If they do offer card, you are going to want to double check, see if they offer card for sure or not and and then go from there. A lot of commercial carriers only take EFT. Some will take card. 104 requires the down payment to be made by card. Okay, you need to call the client, run over the quote, grab the details that you need, ensure the client is fully aware of the coverages and grab their payment information and their current agency if you are going to be canceling the policy. I will get into cancellations here later but if you're going to be canceling their policy, obviously you need to know the current insurance agency. Know the insurance agency, make sure you've got the right one then. I'm just saying Fisher Rounds for example. Well because Fisher Rounds has got four locations or five locations, South Dakota So I suppose you could figure it out and call and make sure that they have that account. Fisher Rounds. I'm sure the whole office has got it, but just does doesn't hurt to just double check and make sure that we've got things really squared away here. Right. So if you have any deck pages or anything that will show the current insurance agency and obviously grab the payment information, we have the duty as an insurance agent to make them aware of all coverages that are on there, make them aware of available coverages. So if I'm going to be presenting a quote for a trucking account, for example, I'm going to say hey, here's the stuff. This is all the coverages that were in your current policy, blah blah, blah blah. If you are wanting anything extra, I just want to make sure you're aware your revenue is about $2 million. You get a million dollars in liability. So if you're in an accident, it's.
Over a million dollars.
They very well could sue you for more than that, especially with the revenue. So I just want to make sure. An umbrella, you're aware of an umbrella. This will add an extra million dollars to your coverage for liability. If you're wanting something like that, you know there's roadside assistance on here, there's rental reimbursement. Do you want those coverages? Yes.
No.
Make sure it's all on call, it's all on record call, obviously write it down and then you're going to document it here. So run through all the available coverages and go from there. Once you have all the required information, hop into the portal to carrier that you are binding. Direct carriers will have the agent enter the payment information on their side. Most carriers don't have the option to send a payment link to the client. So you're going to be putting in the information, put the policy in place with the insurance information, then send out ID cards, proof of insurance, any signatures that are needed. Again, everybody's a little bit different. So know the process. If you're not quite sure, the portal might say or you might have to call the insurance company or just talk somebody in the office. A couple popular ones here, Progressive and Guideco in Berkshire. You're throwing the paper information on your side. They're going to send out a.
They'Re.
Going to send out a signature request to the insured. They're going to sign and basically coverage is being bound just like that. A signature is not needed to bind coverage. Payment is on those carriers. I just said I'll briefly touch on other ones. 10, 4. They're going to send out a payment link to the client. So you can't do anything. You're just going to email the underwriters since they don't have quite a system that's as nice as like progressives. You're going to say hey Steve, I.
Want to buy the policy.
He's going to send it out to the client. They're going to make their first payment with their credit card and then they.
If they want to pay at the.
EFT after that they can pay with eft. The reason that they do this is a little bit different than everybody else is because credit card is almost instant EFT account routing information can take a couple days for the payment so it can bounce. They don't know what the, you know, there's a couple things go wrong there. So they require they required that payment up front there with a card. So just know that once it is done. Move it to sold in agency Zoom and tasks will pop up to document the ams, send out the cancellation such and such and I will get into the cancellation all that stuff here in a little bit in the second video here. So if I'm going to take a client, let's just say I have one of these guys, Great Plains Transport. I can put them in sold and then it's going to say next and I can enter, I'm going to enter all the policy numbers. I'm going to enter all that type of stuff. Let's see if I can do this here without doing that. So I'm going to say sold for Berkshire for example. Make sure that the agent right how it's sold. Any tags that should be on here. So not these guys are a motor carrier and they're going to download into the AMS and I'm going to rank.
Them as a client.
I would say they're actually a priority client. They've been very, very good to deal with. Make sure I've got the exact company in here. This is commercial auto. As you can see, I've got these different sections here. Auto liability, bobtail cargo fleet, occupational accident, physical damage, blah, blah, blah. I'm going to throw in the policy number. Broker fees are something we do not charge. It is if we want to charge just an extra fee for our client. It's illegal in South Dakota and anytime you sell a policy they can just go to somewhere else that doesn't charge a fee and get some cheaper. So I don't ever do that. Premium commissional premium is always going to be the exact same thing. What is the revenue? I'm going to go look in the portal. I'm going to see that These guys pay 12 and a half. I'm going to going to put in the revenue which is premium times 12 and a half percent. So 125 items. I have one item. What's the effective date and when did I sell it? I can add other policies on here if I want. And then boom, it's going to pop up in here and now it's going to pop up in our sales and we're going to track our sales for, for the month here and then that is how we pay commission. So make sure you you guys do that. Do not enter the inches in until you got proof of insurance. And the thing is 100% bound that I emailed Steve to bind the policy.
Boom.
I'll throw an age to zoom. It's bound. No it's not.
Bound.
It's not bound until you got proof of insurance. Okay. So make sure everything is good, good, good to go before you throw it as sold in HCZoom. We will be using nail certs here by the time that most people watch this video to pay commission.
That is a better way to do that.
When you put this information into zoom, it is going to carry that information over to now search so it keeps your life a little bit easier. So over payment PFA commission into zoom. So yeah, that's basically how that deal rolls. And then once it's done, send out those cois here right away. Ask the client, hey, do you have any certificates of insurance that you need here right away? I'm going to send out the ID cards as soon as I can. Some of these carriers are going to send ID cards on the auto liability policy. So you have to scroll down to the bottom of the auto liability policy to find those ID cards. Let's look over an example here real.
Quick and then I'm going to have to rewind here in a second as well. So let's say I go to here. Here is somewhere to look over for brokerage. If I go to 6G's 10 4, here's what 104 sends me after I'm done. Binding courage been bound. Effective 4 1. Process the down payment and you can.
See I bounced on the 21st.
I did this very early because he was not renewing. I didn't want anything to get in the way. He was fine making the payment early and you can make the payment for a later effective date.
His next payment will not come out.
Until 5:1 even though he paid on probably 320. But that payment is going from 4:1 to 5:1. That payment he made in 320 process down payment. They've completed federal filings and I have.
The policy forms attached.
Policy numbers are below. So these guys you would enter in three policies into agency Zoom versus one because they do three different policies for the different lines Canal progress. A lot of other people just do one policy for everything. So I'm going to go to the auto liability forms. That is what I. That is what physical damn or not physical damage auto liability is. ID cards are proof of auto liability, not general liability, not anything on those lines. He has a general liability policy on his physical damage policy for every reason. Trail interchanges on your tool. That is definitely not how it should be. Scroll way down here. And of course there are no ID cards. That is where they normally are. Here's MCS150 endorsement. As you can see, they sent this off to the FMCSA dated for this Circle Star Insurance Company facto date and they did 750,000. They're going to do 750,000 instead of a million because they're contractually liable for this basically no matter what. So they're not going to take any more liability than they need to. They'll still pay out a million dollars for an accident. But the FMCSA requires that the insurance company pays whatever the form, whatever's on the form for basically anything. If he, this guy starts hauling Hazmat tomorrow with a truck and a driver that's not listing the policy. That shouldn't be covered. Well, with this MCS90 endorsement, it's going to be covered. So they don't want to pay for a million dollars. They don't have to. So they're going to do a state, they're going to do the minimum of 750. If you're required to do a million, they're going to put a million dollars on there. If you're required to do 5 million, they'll put 5 million on it. And I want to say I even email, I emailed this person back saying, hey, I did not get the ID cards, but you know, I do, I do have. That's what they're supposed to be here. So not exactly quite sure.
Why the.
ID cards not get put on here. But yeah, ID cards be the bottom of the auto liability policy.
I can see this little flyer and.
So this is in a Portal 2 just saying that, you know, kind of giving him an idea what the coverages are. This will be sent to him as well. And I can see all of that stuff. Progressive and the other companies will put ID cards on their own little deal and send it off to him and they can go get them in the app and everything. But some of these guys who just send you the policies put them at the bottom of the auto liability policy. The last thing I did want to bring up is lien holders, additional insured, anything on those lines. Lien holders are who you have the.
Loan through on.
On the truck. That lien holder should be listed because they're going to want to be the lost payee if something were to happen. That truck, they've got money invested into it and so they want money if the claim happens. So I was at the binding call, I was asked, hey, you got lien holders, you got anybody that needs to be added, blah, blah, blah, blah, we're.
Going to do that.
And yeah, just make sure that thing's squared away. Let's now get into the brokerage side. So as you can see direct carriers are pretty cut and dry. I know I added a lot of the what ifs but honestly a five minute call you can really run through.
All that stuff pretty quickly.
So here once you get a call back from brokerage you need to create a checklist underwriter will let you know what is needed. That that this doesn't make sense here. Obviously I was running a little fast but the underwriter sends you almost always will include a per PFA which is a premium finance agreement and an MVR Canal pulls MBRs on accounts that are 10 units. Sometimes the underwriter will send you the quote and you'll need send in a bind order to receive the final documentation. So sometimes send you a quote and to say and to get the information that you need to bind it, you'll just have to send back a binder. Basically it's just an email saying please bind this. Call the client. Call the client and ensure that they want to move forward. Run over all the coverages, the binding steps and the rest of the process. Running through the coverage of the client is very very important. Write down any changes the insurer would like to make and inform them of the steps of making the down payment. This is very very important. Never ever buying an account without a down payment. You will be on the hook for paying this if they do not pay it. So I had something along this lines happen before. I had a client who said that to buying they signed, they paid but then the payment bounced the day after and I sent him the I sent to the bind request and yeah I was on the hook for it. Luckily I was able to get a flat cancellation. Flat cancellation means it cancels everything like the policy never even existed back they cancels it never existed. This very rarely happens. I did this with dynamic Special Team Dynamicspurch is sent out a blanket email to all agents after this and they'll never do a flat cancellation again. So I lucked out. But yeah. Do not bind a policy without the down payment. I don't care if it's processing, I don't care what the heck is going on. Do not bind it without proof of the payment. So let's look at this. So here's a quote that was sent to me here and it's basically ready to buy. Please see the blow application for comments has been international all this stuff. This quote is valid for 30 days or the expiration date listed on the current policy, whichever comes first. This was on 13th. So I need to buy this thing soon here if I want to do it. Total premium is due within 20 days of the effective date. No flat cancellations. Cancellations cannot be backdated. And what's responsible for filing? Taxes and fees. Taxes and fees are for surplus lines. Business non admitted. It's stuff that's not regulated by the government. And so you must submit taxes and fees. This is something that is non refundable. It is something that's non finance usually. And so it's going to be baked into the down payment. But it's something that non minimum markets have to pay and the insurance have to pay. This I can also see There is a 25% minimum earned premium. MEP means minimum earned premium. It means that if Hazba International decides to bind this thing here tomorrow. Do some math here real quick. If they bind this thing tomorrow and decide to cancel on Friday, next Friday. Okay, today's Sunday when I'm. When I'm filming this thing. So total Premium here is 18,312 times 0.25 if they cancel a week after binding this. Oh, this is for one of the policies. Okay, this is for one of the policies. The excess. Let's do it with the excess on the excess policy. No matter what, they're still going to owe dang near 4600 bucks plus the tax and fees. So plus 500 plus let's call it 919.
No matter what, they're going to owe six grand.
No matter how long they're with this.
Coverage policy insurance company over your club.
They're no minimum of six grand no matter what. If they don't pay it, you're gonna be on the hook for it. And yeah, don't, don't do that. Don't do that. You never want to be in the hood for six grand. You can see our commission here is 10%. And then right here. Subjectives. Subjectives part of binding. So they're going to confirm my license, which is obviously fine. Copy of completed and signed dated access form including all associated attachments. 5 years of valued loss runs including 5 years of loss into the work comp. Provide binder policy of the work comp. So I need to provide this information to buying this policy. It's kind of weird, I'm not even recording work comp. But they're going to want all this information here. Looks like they have a service fee. Same exact deal here. We reserve the rights to amend any terms. Priced upon receipts. Provide documentation. There has not been a lapse in Coverage copy of expiring policy completed with endorsements copy of completed signed access application and here's all my applications. It's not loading right now but I would need all this stuff and then I would need a premium finance agreement. So as you can see some of these non standard policies are a lot of fun to write. I wish I could throw policy fees on this stuff. So one thing we learned from this is we don't want to bind garbage accounts through access to surplus lines. It's $2,000 and you got all the work. I mean that just is not even remotely worth it. So that is how we bind that. Get all the applications done. Make sure you run through this thing like there's no tomorrow. Review the review the exclusions and the endorsements. Review what is needed to bind this thing. Make sure you know exactly, exactly, exactly, exactly what is going on. So we're on through this stuff processing the down payment or initial premium required to binding using the payment method accepted by the premium finance company, credit card check, electronic fund, whatever. With a PFA a link will be sent to the client to enter in the payment information. So this stuff access insurance company through amlance the brokerage does not accept or they do not have a direct billing they use a finance company. It's almost like getting a loan. You would go get a PFA a premium finance agreement and that's how you're going to pay for it. Pfas. It's so good to have their payment information. So this will ask for it because we want on file in case they never need to make a payment in the future here. But in this situation you're going to send a buy a payment link to the insured and then they're going to sign the pre and finance agreement and they're going to pay collect the MVR whenever NVR company we use which is FL and VR this is in the portal there is a post for how to create a pre and finance agreement. Some carriers have a portal where you manually request filings. This is also another good fact. Ensure you know the whole process. If you're buying something that is trucking some carriers you have to, you have to go into the portal and request filings. This the only one I'm aware of that does this is 180. I've only bound one policy ever with 180. They're not in the portal because they're garbage. But sometimes you got to request filings. It should always be known that filings are needed but 180 and CoverWell make you fill out the MCS 190 form. So those, those are two good companies to know and CoverWail and 180 are going to make you fill out the filing yourself. When we just saw ten four's policy, they filled out that filing and they just sent it to me. We will never do MCS 90 filings, state filings, anything. It's always done by the insurance company. But it's always our duty to make sure that they're requested, that they're filled out if need be. All that type of stuff. Direct carriers, you're never going to fill out MCS 190 form. You're just going to make sure you select it in the system.
Do they have Federal filings?
Yes, MCS 190. So make sure you know that stuff and then they'll just take care of it. Some of the brokerages are a little bit different so make sure you review all of the checklists very very heavily. Also, if you're canceling a previous policy insured, send out a cancellation request. I will get into this here in a minute too or in the second video. So let's go over a PFA here. A premium finance agreement. Well actually let's do this. This is what one looks like when it's done. Let's go watch my binding video on how to fill out a premium finance agreement. How to create premium finance agreement. As you can see I got two companies here. I've got IPFS which is right here and Ascend. We are probably cutting IPFs. So we always, always, always use Ascend if available. As you can see here. Will they finance tax and fees. No approval time. If you need to make an exception, they'll turn on quick. This is why I use IPFs. But they've created more of a headache than ever. They'll just take 48, 24 to 48 hours negotiation. They will never negotiate anything under $10,000 in premium. This is saying if they come back with a 25% down on the PFA.
That'S a little hefty.
But if you're like hey, you know send will you do 17 down? You can negotiate with them.
So blah blah. Let's get into Ascend. How to create a premium finance agreement. This is Ben's video.
It.
All right, let's get back to watching this deal. This is a sign. It was just entering the client's information here. We're gonna put the invoice or the proposal in here. Usually you gotta. So it's a quote number usually gonna do the premium Finance agreement before obviously you're buying the policy. Well you always are doing it before you buy the policy. So you put the policy number and after you bind it here and then you do the quote number and you do all the different lines for everybody. For the insured, when you're quoting the.
Pfa.
Put in the legal insurance company name. So it's Progressive for example, you're not going to do a primal finance agreement for Progressive. But if it's like Progressive for example, you're going to put in Progressive, you're going to put in the legal subsidiary name that is being used on the paper. That would be Artisan Truckers for example United Financial Casualty. Usually looking at the quote or something along the lines to get the exact name there. If you're not sure, ask the underwriter. That is a quote when you're gonna buy the policy.
When you're planning on buying.
So you do the only the premium. Premium is not including tax and fees. Any broker fee, anything on those lines, straight up actual premium. If there is like what he's saying, this is all in one quote. It's basically just gonna end up being like all on one quote form. And it's like total, it's got 350 in policy fees. Just throw on one of the lines, their lines will have a policy fee then. So I mean that way they're still getting their money. This total number should match up exactly those on the quote to the Penn take rate is like something that goes to the agency for reference. 23% APR is incredibly expensive but as you can see it's not like 23% of the total premium. It's. I don't know exactly how it all works out. Even it's like 23. Holy crap. You imagine I'm 23 interest on something. What's 250 bucks on a 3 hunt with 3200 policy? Yeah. So as you can see it's really not that much. But you know if it does seem undormally high, maybe contact the pre and finance company.
Like if you got a million dollar.
Dealer, five hundred thousand dollar deal and it's like fifteen. Yeah, go and contact somebody. That's. That's a lot again on average here. So you have to have over 10,000 premium to request anything. But down payment typically is 20%. If it's more than that you can request lower. If it's over 10,000 premium you can request APR being lower. And typically for a smaller policy on this size you're looking at around like 18, 17 as it goes. Up a hundred thousand dollar policy. Like here's a hundred thousand dollar policy. I bound, you know, about 86. They have an APR, so they got down payment 17,000, which I don't even really know what that is. That 20%. Let's do 86 times 0.2. Yeah, seven. So 20%, which about normal, right? 12 APR, as you can see on an $86,000 calls about four grand. I'm doing a 1% take rate. So 1% of this 12 is going to me. And then they have 10 monthly payments of 73, 7200 bucks. So that's how you do a PFA once. The thing is bound. Here, I'll show you guys what this looks like after. Here's what's bound. These guys made their payment just a couple days ago. It was due on March 26. They made it on the 27th.
As you can see.
I was saying here with the ACH or the eft, whatever you want to call. Takes a couple days for it to come through. It's still processing. So no, it's not been sent to me yet because the payment has not successfully transferred. Nothing has gone to the carrier. In this case it is ambulance. Because payment is still processing. I can check back on this and keep an eye on it. I can see here's the contact information. Here's the client.
Here is me as a producer.
Here's how I did it. Here's the policy number. This one was bound. This was just a renewal. So I got the invoice and everything after the policy was bound. She's been a really fantastic client. So I got the invoice, sent it off to her. Here's this I can see right here. Processing payment. She opened this. I open this. And then she clicked the payment on the 26th to go out and initiate it. As you can see, I put the insurance company, Vantage Risk Assurance Company with the exact name. They go by Tango as the dba. Kind of like Progressive to United Financial Casualty. Not do that. Amwins. I put Amwins in here. Amwin's has all sorts of different departments. Amwin's Brokerage of Texas. You got Amwoods Brokerage, Ambulance, National Transportation Underwriters, AM One's Environmental. All sorts of different things here, right? Make sure that the exact correct broker on there and the correct location. If you're not sure if she says on a quote or confirm with the.
With the underwriter.
I click actions. I can edit the policy. I can see. I attached the binder here. In this scenario, since it was a Renewal I can draft the premium finance term. So if I needed her to sign this deal, I can get that. And then you can see all of this stuff here. Right? Let's see. Policy number, earned fees, unearned fees, policy terms 12 months is the subject to audit. We need to put the stuff in here because this thing could change. As you can see, here's the broker fee that I put in. Here's the correct premium. This is a property policy. There's nothing audit. Again, going back to the quoting section. If this was a general liability it could be open audit. Not always. Workers comp is 99% of the time subject to audit unless you do as a pay as you go. But I think it's still subject to audit then. But then you put yes, subject to audit. So that way this thing can prepare and charge more if there's an audit. Down payment amount financed, total finance charges which is like the interest.
Mount.
What is this? I think this is about finance plus interest, sale price, the whole thing. Now I want to touch on this here. She does sign this deal or people will sign this deal. It does not show a signature because processing the payment is still processing. So what they're kind of doing is helping us in the situation. If you need to send in a signed pfa, they're not going to show you the signed PFA until the payment has been successfully processed. If for a reason it's still not signed and the payment's gone through. Go ahead and just throw this in the panda doc and get it signed and throw it in our records.
Very, very important.
We always document this stuff. So that way, that way we can go check back on it here later if need be. So there is that. That's how you create a premium finance agreement. And I'm gonna do my second video, the second of the cancellations of stuff.
How to handle exclusions and rejected coverages. Again, this thing is not going to be. You're not gonna watch one video and you're done with this little section here. Go through and watch all of the sections in this in the portal here. So if you need to create an invoice that they're doing a one time payment, you can send them an invoice and it sends us our commission sends the MGA their money keeps life really easy. Right? And inviting insurance to self certificate portal binding business with 10, 4. Let's go over these ones real quick here. I put these ones in here because they're a little different.
So.
This stuff's the same here. Email the underwriter 10 Ford & Firm to inform them you were buying the policy. Include the policy details and required documentation. They will also confirm the effective date because sometimes the effective date changes obviously. Right. So say hey Steve, I like to.
Or Scott, Scott, I like to buy in this policy.
Effect of this date, please send out to the insured. Get that done. 104 will send in payment and application or payment link and an application directly to the insured for completion. The insured must provide a credit card for the initial payment. 10:4 requires this to expedite the payment processing again ach takes a couple days. Credit card is dangerous. They can pay EFT after the down payment and their down payment is only 12%. Also I just want to mention this is not a normal down payment.
This is a down payment that still.
All goes towards premium. It's just more upfront. Premium usually covers first and last payment or something along those lines. If the insured prefers to use their checking account for the subsequent payments, they can put in the EFT information as well. They'll do. There'll be two payment information spots on the application. Monitor status once, once you got confirmation mark is sold, send cancellation, blah blah blah. Cover Whale is a really really weird one here. So same deal, present quotes, go over the quote the client, ensure they understand all the coverages, clarify any missing information or discrepancies and age of zoom or the CAB report. Gather payment information, confirm details of the insured, current agency and cancellation process. Log into the coverable portal, input the policy details or the information that's needed. You know, submit the necessary information to buying policy. Ensuring accuracy in filing. Since the agent, not the insurer completes the filing. So we need to make sure that we are doing the filing or that the somebody's filling it out. They are going to submit this thing like it's brokerage but it's just going to be a way slicker process of brokerage. So we're going to fill out the filing. So make sure that they're going to send off all the information. I think they actually send it to the insured. So I would call the insured and complete the binding call on the phone with the insured. That way they get all the information. They're signing everything. The MCS90 form is filled out correctly. So do that. All the forms obviously must be completed. They're going to, they're going to bind it that way. You're going to, you're going to request bind through Coverwell. When you request bind, this is when they order mvr. So obviously you can't just go in there and order mvrs and then present the final quote when you select Bind then the order MVRS and you submit the final review there. So make sure when it asks you on there, all the violations and accidents, you've ordered an MVR ahead of time or you've gotten it from Geico or something along other lines where you can see the information on there, input it. So the price has not changed. It's a little finicky. It's a little, little funky I should say because you can't really know final price I guess with them until you buy the policy. But if you do your due diligence ahead of time, you should be just fine. The other thing is Cover Whale is extremely, extremely picky on underwriting. They do not underwrite this thing ahead of time. It's like you're submitting it to an Amblins underwriter for them to look at the stuff ahead of time and ask you the questions are needed. They're requiring that or they're ensuring that the agent is going to do all this underwriting ahead of time. So with 104 or Coverwell being extremely picky, the MCS150 which is the deal on cab that states how many trucks they've got, what they're hauling, their phone number, their address, all stuff is exactly what Cover Whale what you put in the coverwell system. It must be perfect and identical if you put in to cover. Well, they're hauling general freight and the MCS150 cab reports the MCS 150 part of the cab states are hauling livestock, mobile homes, literally anything besides general freight. They may sometimes underwriting will check up with you or they'll just flat out cancel the policy. There's a chameleon alert. This needs to be documented the notes or you need to call the COVID Whale ahead of time to make sure that this is fine and that you have a good explanation of it. Because again, they can just cancel a policy. Cover Whale really screwed me on a deal. They canceled a 14 unit policy that I had because I it was a 14 unit new venture. They did an asset purchase of another company, found it their underwriting guidelines said they would take up to 25 trucks new venture and that they didn't care. Well I guess when they, when I bound it they just changed it the week before. Kind of a great coincidence. And so then they canceled it. Asked a bunch of underwriting questions and they canceled it literally two days later. Ate the whole down payment. And then it's been a Nightmare to to get the I don't know, just put the billing. So cover well at the time used to have a three hour wait time. Now it's a three minute wait time. So call confirm, make sure everything makes sense and is probably checked up before you buy anything with Coverwell you can.
Call them and talk to underwriter, talk.
To a customer service person here now ahead of time. Also you have to either install a camera or you have to sync to the eld. This is CoverWell's difference. So make sure that you understand the whatever, whatever option you choose. The ELD sync or the camera installation. Make sure you understand stuff and you relate to the client. This is something you cannot forget to tell them. If they go with the eld, for example, I believe they have 35 days to sync their eld to cover will. If it is not sunk in 35 days they will cancel the policy. So you need to check on this. Coverwell is going to have notes at the bottom of the account. Check those notes for notes from underwriters. You're going to check this daily after binding a coverable policy. Just making sure everything is sent good. Check those notes. Make sure everything is sent good. And yeah that's really most of steps with binding. I'll go over First Light here real quick and overpayment brokerage checklist, PFA COIs, additional insurance commission. Lastly, I want to go over here. That one's a little different than what's popular with us is first like program managers watch this video. I had an account right to redo it three times the application. Watch this video on how to.
Fill.
Out the application for First Light. Usually it's a canal application. It's just got things got to be perfect with them. These guys get audited on their forms and so they're not ones that just be like oh yeah, it's answered wrong. We'll let the one slide because they get audited on it and they can be, I don't know, get in some trouble. So do that. Make sure everything's signed, make sure everything's completed, lots of due diligence and you're checking up on stuff. So let's get into the second video here and I'll explain the rest of the stuff to you guys here.
