IRC and Products Council
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Purpose
The purpose of the Insurer Relations Council is to develop and enhance carrier relationships for the Group. These efforts are guided by IRC members with assistance from the co-owners. The IRC and co-owners work to:
- Identify Insurance Companies for group-wide appointments (some on a national level others on a regional level) and maximize contractual agreements.
- Monitor group-wide results with the carriers - loss ratio and volume.
- Provide Leavitt group agencies carrier information pertaining to products, contractual arrangements and production and loss experience statistics.
- Assist agencies in resolving issues they may have with carriers.
While members of the IRC typically form relationships with Home Office personnel, they also work to make certain that relationships are formed between the agencies and the carriers at the local and branch levels.
Duties of the IRC
- Negotiate, review and sign carrier contracts for the group-wide appointments.
- Monitor and effectively use volume and loss ratio. Identify and work to rectify issues that may arise such as unacceptable loss ratios, decrease in volume, etc.
- Periodically, visit carrier Home Offices and Home Office personnel.
- Leverage home office relationships to the branch levels.
- Actively campaign for positions on carrier producer councils for affiliate agencies in the various regions.
- Keep carrier product information in front of the Leavitt affiliate agencies.
- Council will meet on a monthly basis. Meeting will be held the 1st Wednesday of each month from 1:30pm to 5:00pm in the LGE Boardroom. Committee members must have information to Leanne by the Tuesday before the meeting.
- Inform and coordinate with the council concerning carrier matters.
Principles for Consolidation of Agencies
Whenever there is a group-wide consolidated carrier arrangement, all Leavitt affiliate agencies are to be included. Aggregation maximizes contingency commissions over time under most contingency contracts. The agencies do not get to opt in or out as they choose. Exceptions exist when:
- An agency is acquired mid-calendar year, it may be left out of the consolidation if it can be determined that their position with the carrier will negatively affect the group-wide arrangement or the group-wide arrangement negatively affects the acquired agency. At the next calendar year, the agency will roll to the consolidated arrangement.
- The agency is affiliated with a Cluster and to remove part of the Agency's book from the Cluster jeopardizes the Agency's ability to obtain access to carriers needed by the Agency that Leavitt has no affiliation or relationship with.
- The IRC has discretion to enter into aggregate arrangements.
- Neither LGE nor co-owners directly receive contingencies. All contingencies flow to agencies or to LGAA under the LGAA Members Governing Committee's direction, consistent with LGAA's Operating Agreement.
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