Legal Question in Business Law in Utah

Insurance co. Trying to steal agency business

I have owned a small ins. agency for the last three years. I have been an ins. agent for 23 yrs.

The Ins. Co. in question had an underwriter of which

we became friends, until we privately discussed a

personal problem she had while visiting my home in UT.

After that, she refused to underwrite business for me, and became very rude.I went to the Manager of the Ins. Co. and asked for help. The Underwriter left

in July, 2001, and I was informed right after that my Agency license was being cancelled eff. 1-1-2002 because of losses on my accounts. The Ins. Co. is now soliciting for my business in writing to my insureds, and mailing other ins. agencies copies of the cancellations. What are my legal options on this?


Asked on 1/24/02, 8:42 pm

1 Answer from Attorneys
Alvin Lundgren Alvin R. Lundgren, L.C.

Re: Insurance co. Trying to steal agency business

Your first recourse is to review your contract with the underwriter. The terms in the underwriter-agent agreement govern your rights. However, those terms may be modified by the course of business (historical) between you and the underwriter. Compare whether your losses are noticably different than in the past - if there is not a big change then you may have a cause of action. You cannot force the underwriter to do business with you, but you may be entitled to the loss of income from their improper termination. first assemble your loss ration history and sales history, then get a copy of your underwriting agreement. You may want an attorney to go over the details with you to make sure of your options and possible damages.

One other thing to check is whether the Insurance company has appeal or review boards to which you can go for relief. Often a large company will have a number of administrative routes for consideration. Your conversation with the underwriter should not have triggered this response.

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Answered on 1/24/02, 9:40 pm


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