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The insurance on my glass shop and vehicles and workman's comp for my employees and their health care benefits are all coming up for renewal. I decided to take a page out of the playbook of NAGS.
I borrowed NAGS proprietary method of establishing bench mark pricing: I wrote random numbers on slips of paper and threw them in the air and picked them off the floor one at a time. In that way, I established BENCHMARK prices for---
business interruption insurance
I sent the benchmark prices to my existing insurance carrier and stated the minimum discount I would accept from them to renew. I also told them I sent the benchmarks to several other companies for their discount bids. To be on my approval list, I also explained that whoever won my business would then have to submit my premium bill to their competitor of my choosing for payment. Every bidder is also required to submit reports on the competency of their office staff who handle policies.
I gave State Farm an offer and accept opportunity for my policies business, if they agreed to send all my premium bills to Allstate for processing. State Farm replied that they are on the Liberty Mutual Network and must abide by their pricing if they want to stay on their approved insurance carrier list and all their premium bills are submitted to their TPA which is Travelers.
They also told me they would not accept my benchmark insurance prices because I am not in the insurance business. I replied that NAGS is not in the glass business but they want me to accept their benchmark glass prices.
Funny stuff Vinnie. It reminds me of several conversations I had years ago when insurance companies started short paying us. I asked them, “What would you do if I sent half my insurance premium and told you I had determined that was the fair and reasonable amount?” Their reply? “We would have to cancel your insurance.” Exactly!!! So I cancelled my business and auto insurance with companies that short pay and do business with companies that pay me. Not coincidentally, they don’t use TPAs either.