Complaints

• Initial Complaint

  08/30/2023

  Complaint Type:

  Product Issues

  Status:

  Answered

  More info

  This company has not taken care of me, guided me, and helped me with my insurance like they were hired to do. I'm now receiving collection bills from several places due to their lack of direction in canceling my bonds. I can't talk to the bond company. They only speak to the insurance that originated the deal. I want a refund for these collections for their abuse of power, license, and lack of follow-up and guidance.

  

  Business response

  08/30/2023

  Thank you for reaching out to us.  We appreciate where ********************** is coming from and would love to help him more.  We have tried multiple times however the carrier has advised they cannot allow us to cancel a contracted bond until there is a release from the obiigee.  We understand it appears that we are not acting, but all we can do is request ********************** contact the obligee of the bond to get a release in writing.  Once we have this we can forward it on to the carrier, which is CNA Surety, and then they can release the bond.  Once a contract for a bond is established it is obligated to be paid and kept in force until released or expired.  Below is the letter in writing explaining this from CNA Surety in good faith.  Again, we wish we could do more for ********************** but our hands are tied due the bond contract obligations.  Since our agency is not a party to the bond itself, we cannot request this release.   Please let us know how we can further help.   Respectfully,  *********************, agency owner.   .  
  
  
  
  From: ************************ <*****************************>
  Sent: Wednesday, August 30, 2023 4:55 PM
  To: ***************** <******************>
  Subject: Conversation
  
  Thanks for the phone call.
  
  As requested, I am sending a quick e-mail to inform that the agency is not a party to the surety bond.  Your responsibility is to represent the surety and the principal.  The three parties to a surety bond are the principal (contractor) the obligee (city/county/state) and the surety (CNA Surety).
  
  It is NOT the responsibility of the agent to obtain releases from the obligee.  That is the sole responsibility of the contractor.  As a reminder.a release is required when the contractor is doing some sort of physical work and the obligee does not want the ability for the contractor to up and cancel on a project and leave it half completed. My own guess is that he received a release and didnt know what its purpose was.I would suggest contacting the city to see if they could provide you with a copy of the release so it can  be forwarded to us.
  
  Let me know what you wish to do and I will help you out. 
  
  ***************
    Underwriting Manager, West Team
    *********************************************
   ***********, ** 57103-7046
    T: ************ or ************  Ext: 7059
    F:  ************
  
  
  
  
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  Customer response

  08/31/2023

   
  Complaint: 20544771
  
  I am rejecting this response because: That is the job of the insurance agent to let us know about this, not wait until now, when collections letters have started coming. I was not told this, I was told they were cancelled. I'm a new contractor and rely on the insurance agent to tell me what needs to be done, not turn and burn deals for their own financial gain. I own a home inspection company and take good care of my clients, It's my job to do so. The same should be said for insurance agents, we rely on them to teach us about what needs to be done. Just like the $9000 dollar bill form the first audit we We had no clue we had to do this, no clue that they charge you more for a growing business, even though no injuries were reported, which in my opinion is a scam.  We are not college educated here it the insurance agent job to keep us informed.That is what they are licenses for, I'm also filing the **** as well. There has to be some sort of standard these companies are held to. All bonds that you dropped the ball on here need to be paid by you. Also I revived and email yesterday from your own team that the jurisdiction needs to cancel these as well. So another poor action that you did not even add to this complaint. So in all I have a feeling I'm not the only company that has had this issues with this establishment. 
  
  Sincerely,
  
  *******************************

  

  Business response

  09/01/2023

  Hi ****,   Thank you again for responding.  I understand audits and contract rules around bonds are inconvenient and also can appear to be unreasonable at times.   However, the industry has worked in that capacity for decades.  My staff has mentioned that together you have talked several times, but our agency cannot change the results of an audit, nor do we get the direct invoices.  They come from the carrier to you.  As you mentioned you are a growing company, so this resulted in the audited premium being more than initially projected on your application, and subsequent quote proposal.  The official policy also explains there will be an audit.  If you wish to dispute the audit, you may do so by justifying your position with the insurance auditing team.  
  
  My understanding is that there is another agent you are working with advising what we should be doing as a retail sales agency?   I would welcome the opportunity to talk with this agent so we can clear any misunderstandings. Meanwhile, those misunderstandings appear to be in the scope of duties and compliance our office can and cannot control.     
  
  With regards to bonds, we only are the liaison between you and CNA Surety to secure the requested bond.  We dont read the contracts nor are we responsible for the compliance of the contact between yourself and the obligee.   We are advised from CNA Surety, that a bond contract has an expiration date associated with it and the bond cannot be cancelled prior to the expiration date unless there is a written release of the bond from the obligee.  While we can request a cancel to the bond company, we are advised they cannot cancel the bond until it expires or there is a release from the obligee.  This is out of our hands as an agency which has been communicated. 
  
  With regards to audits, I trust that you are aware that audits are a regular part of business with respect to insurance because you have done them in previous years.  Audits are normal in your line of business.  The audit is direct between your company (insured) and the insurance carriers auditing team.  All mail and e-mail would be going directly to you.  Our agency is only notified of the results. The results we see at our office usually are that the audit is non-compliant, or it is complete and it shows the results of that audit.  If there is a dispute, we can help facilitate that communication.  And,if money is due, they sometimes ask us to help collect the audit premium due.  The audit also confirms that the scope of work your business is doing matches the classifications on the insurance policy in any given year.   Therefore, if there is a change, or addition, in the scope of work your company performs, then we need to be aware of it so we can make that update with the carrier.   
  
  With regards to contract compliance, again we are not lawyers and we are not licensed to interpret contracts.   We like to see the section of the contract that addresses the insurance needs, and we do our best to secure coverages that comply with the wording on the contract with respect to the insurance portion.  We also are not responsible with the general compliance of other parts of any contract.    
  
  ****, I hope this helps to differentiate the scope of our agency.   Again, we appreciate your business and will continue to communicate as appropriate.
  
  Respectfully,  ***

  

  Business response

  09/06/2023

  Thank you for the continued communication.  We spoke this morning by phone as you know, 9/6/23.   CNA Surety is pulling together the entire list of bonds outstanding and will support getting them cleared up over the next few days.  It appears we are moving forward as you would expect.  Hopefully, we are on the same page and would appreciate your acknowledgement of such.  Appreciate your business.  Respectfully, ********;

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