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-   -   obtaining insurance quote .... (http://www.aviationbanter.com/showthread.php?t=90976)

Ron Gleason January 17th 09 02:24 AM

obtaining insurance quote ....
 
I currently have my plane insured through LL Johns and the underwriter
is AIG Aviation. The renewal is mid April and I would like to obtain
quotes from Costello and Avemco to compare rates. In requesting a bid
from Costello, under the SSA group discount, I have been asked to sign
a form that has the following wording

This is to certify that effective January 16, 2009 Costello Insurance
Associates Inc. is my only
authorized representative for the purpose of arranging aviation
insurance on my behalf.
It is understood that most aviation insurance carriers will release a
quotation for my insurance to
only one agent/broker, and that by signing this letter I am
terminating the ability of any other
agent/broker to obtain a quotation or bind aviation insurance with
your company.
This letter will remain valid until formally rescinded in writing

I am reluctant to sign such this as my current is intact. Am I eing
paranoid? What have other folks done?

I am not picking on or faulting Costello, rather just trying to
understand how the insurance industry works and not void any existing
policy

Thanks in advance

Ron Gleason
DG303 N303MR

Darryl Ramm January 17th 09 03:34 AM

obtaining insurance quote ....
 
On Jan 16, 5:24*pm, Ron Gleason wrote:
I currently have my plane insured through LL Johns and the underwriter
is AIG Aviation. *The renewal is mid April and I would like to obtain
quotes from Costello and Avemco to compare rates. *In requesting a bid
from Costello, under the SSA group discount, I have been asked to sign
a form that has the following wording

This is to certify that effective January 16, 2009 Costello Insurance
Associates Inc. is my only
authorized representative for the purpose of arranging aviation
insurance on my behalf.
It is understood that most aviation insurance carriers will release a
quotation for my insurance to
only one agent/broker, and that by signing this letter I am
terminating the ability of any other
agent/broker to obtain a quotation or bind aviation insurance with
your company.
This letter will remain valid until formally rescinded in writing

I am reluctant to sign such this as my current is intact. *Am I eing
paranoid? *What have other folks done?

I am not picking on or faulting Costello, rather just trying to
understand how the insurance industry works and not void any existing
policy

Thanks in advance

Ron Gleason
DG303 N303MR


Ron

Here is another agent's info on this

http://www.aviationinsurance.com/selecting.html

I would expect you'll get the exact same quote +/- an SSA discount,
unless you provide additional info to Costello to lower your rate.

Darryl

Darryl Ramm January 17th 09 03:36 AM

obtaining insurance quote ....
 
On Jan 16, 5:24*pm, Ron Gleason wrote:
I currently have my plane insured through LL Johns and the underwriter
is AIG Aviation. *The renewal is mid April and I would like to obtain
quotes from Costello and Avemco to compare rates. *In requesting a bid
from Costello, under the SSA group discount, I have been asked to sign
a form that has the following wording

This is to certify that effective January 16, 2009 Costello Insurance
Associates Inc. is my only
authorized representative for the purpose of arranging aviation
insurance on my behalf.
It is understood that most aviation insurance carriers will release a
quotation for my insurance to
only one agent/broker, and that by signing this letter I am
terminating the ability of any other
agent/broker to obtain a quotation or bind aviation insurance with
your company.
This letter will remain valid until formally rescinded in writing

I am reluctant to sign such this as my current is intact. *Am I eing
paranoid? *What have other folks done?

I am not picking on or faulting Costello, rather just trying to
understand how the insurance industry works and not void any existing
policy

Thanks in advance

Ron Gleason
DG303 N303MR


Oops and I forgot... you are not voiding any current insurance policy.
You are just appointing somebody to get you a quote. If you don't like
that quote keep your current insurance. You can also later reassign LL
Johns as the broker of record.

Darryl

Pete Brown January 17th 09 06:41 AM

obtaining insurance quote ....
 
Ron:

I think the problem arises from the thin underlying aviation insurance
market. When you ask a broker for a quote, he sends on your request to
an underwriter, i.e., an insurance company, for a quote.

The problem is that there aren't that many aviation insurance
underwriters who will write the policies. You may ask three different
brokers for quote but the brokers in turn all ask the same few
underwriters writing such insurance for a quote.

So, if you contact brokers X,Y, and Z for a quote, those brokers will
in turn ask for a quote from the same underwriters. The underwriters
then see that they have received three requests for a quote from the
same guy (you) from three different brokers, X, Y, and Z. The
underwriters view this as wasting their time provide a quote to the same
guy three different times through three different brokers.

Avemco is an insurer, not a broker, and they don't sell through brokers
so they are not going to pass your request on for a quote to another
underwriter. They will either agree to insure or not.

In your case, its possible that both Costello and LL Johns are
requesting coverage from the same underwriters. It's not a very
competitive market so buyer beware.

At the end of the day, I think the broker is asking to be your sole
representative while he is approaching the underwriters on your behalf,
which representation you may terminate in writing at any time. This
shouldn't affect your existing coverage.







Ron Gleason wrote:
I currently have my plane insured through LL Johns and the underwriter
is AIG Aviation. The renewal is mid April and I would like to obtain
quotes from Costello and Avemco to compare rates. In requesting a bid
from Costello, under the SSA group discount, I have been asked to sign
a form that has the following wording

This is to certify that effective January 16, 2009 Costello Insurance
Associates Inc. is my only
authorized representative for the purpose of arranging aviation
insurance on my behalf.
It is understood that most aviation insurance carriers will release a
quotation for my insurance to
only one agent/broker, and that by signing this letter I am
terminating the ability of any other
agent/broker to obtain a quotation or bind aviation insurance with
your company.
This letter will remain valid until formally rescinded in writing

I am reluctant to sign such this as my current is intact. Am I eing
paranoid? What have other folks done?

I am not picking on or faulting Costello, rather just trying to
understand how the insurance industry works and not void any existing
policy

Thanks in advance

Ron Gleason
DG303 N303MR


[email protected] January 17th 09 06:47 PM

obtaining insurance quote ....
 
On Jan 16, 9:41*pm, Pete Brown wrote:
Ron:

I think the problem arises from the thin underlying aviation insurance
market. When you ask a broker for a quote, he sends on your request to
an underwriter, i.e., an insurance company, for a quote.

The problem is that there aren't that many aviation insurance
underwriters who will write the policies. You may ask three different
brokers for quote but the brokers in turn all ask the same few
underwriters writing such insurance for a quote.

So, if you contact brokers X,Y, and Z *for a quote, those brokers will
in turn ask for a quote from the same underwriters. The underwriters
then see that they have received three requests for a quote from the
same guy (you) from three different brokers, X, Y, and Z. The
underwriters view this as wasting their time provide a quote to the same
guy three different times through three different brokers.

Avemco is an insurer, not a broker, and they don't sell through brokers
so they are not going to pass your request on for a quote to another
underwriter. They will either agree to insure or not.

In your case, its possible that both Costello and LL Johns are
requesting coverage from the same underwriters. It's not a very
competitive market so buyer beware.

At the end of the day, I think the broker is asking to be your sole
representative while he is approaching the underwriters on your behalf,
which representation you may terminate in writing at any time. This
shouldn't affect your existing coverage.

Ron Gleason wrote:
I currently have my plane insured through LL Johns and the underwriter
is AIG Aviation. *The renewal is mid April and I would like to obtain
quotes from Costello and Avemco to compare rates. *In requesting a bid
from Costello, under the SSA group discount, I have been asked to sign
a form that has the following wording


This is to certify that effective January 16, 2009 Costello Insurance
Associates Inc. is my only
authorized representative for the purpose of arranging aviation
insurance on my behalf.
It is understood that most aviation insurance carriers will release a
quotation for my insurance to
only one agent/broker, and that by signing this letter I am
terminating the ability of any other
agent/broker to obtain a quotation or bind aviation insurance with
your company.
This letter will remain valid until formally rescinded in writing


I am reluctant to sign such this as my current is intact. *Am I eing
paranoid? *What have other folks done?


I am not picking on or faulting Costello, rather just trying to
understand how the insurance industry works and not void any existing
policy


Thanks in advance


Ron Gleason
DG303 N303MR


When you sign up with a broker to be your exclusive agent (broker of
record) any market that he/she submits an application to locks up that
ins. carrier to that broker for you. So when you go to another broker
to get a competitive bid and they submit a application to lets say AIG
and if Costello has already submitted one to them with your name on it
they will not give another bid to the other broker on your behalf. So
if the ins. broker is smart and there are only 3 or 4 carriers that
will only handle lets say glider they will submit an application to
all 3-4 carriers and lock up all 3-4. If you don't care to deal with
a particular broker you simply sign a broker of record with the broker
you prefer and he can go after that market.


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