Safeco Ins: Give Credit When Credit is Due

I had originally plan on this post slamming Safeco Insurance for their mishandling of a policy in my office. Safeco, like most insurance companies want their agents to quote and issue policies online. Online quote and issuance of policies is quicker, cheaper, and requires less underwriting review. If the client fits through all of the online underwriting guidelines, then the policy is quoted and issued. As insurance agencies have become more technologically savvy, agents have generally embraced this concept. It allows us to serve the client faster, therefore better.

Recently we quoted and issued a policy through Safeco. A couple of weeks later our regional office in Indianapolis notified us that the policy in question would be cancelled in 60 days. When we question the reason for cancellation, we were told that there was a programming error and this policy should have never been approved or allowed to issue, therefore Safeco was canceling. We asked another underwriter for help and received the same answer.

My next call was to Mr. Mike Hughes, the Executive Vice President for Insurance Operations. Although after several calls I never did get to speak directly to Mr. Hughes, my message was heard. The underwriting department has agreed that if we (agents) are to use their quote and issue systems, then Safeco must stand behind the information we are given. If the system produces a quote and issues the policy, then Safeco must honor it.

Today I was notified by the regional office in Indianapolis that Safeco will reinstate this policy. Congratulations to Safeco for doing the right thing.