obtaining insurance quote ....
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
This letter will remain valid until formally rescinded in writing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
Thanks in advance