1) Issuing business license to the insurance company
Department of Insurance verifies all insurance contracts before granting approval to the insurance company to operate its business. The Department also protect consumers by preventing the insurance companies from including deceptive clauses, investigates overcharge and issues correction orders, and monitors unethical practices. As a state government-affiliated public organization, Department of Insurance can issue correction order and/or warning, impose a fine, and revoke license to suspend business operation of insurance company when they find violations.
2) Role of Insurance Agents
Although Department of Insurance can sell insurance directly to the customers, it will often delegate sales of insurance to Insurance companies and their agents and collect sales commission instead. Insurance companies hire agents because it is easier for insurance agents to sell the products since they have built trust with their customers over years.
In other words, insurance companies realize that insurance agents can sell more insurance policies without spending enormous advertising expense. However, as the insurance industry becomes more competitive, emerging insurance companies often sell directly to customers to keep costs down in order to compete against the industry giants.
3) Role of Public Adjuster
In recent years, we are seeing a lot more cases of water damage caused by exploded plumbing in homes, businesses, commercial and properties. There are also more cases of fire, theft and natural disasters. This is likely because of global warming, as temperature increases in our atmosphere. There have also been many flooding damages caused by broken plumbing pipes in residential and commercial buildings as well. Since about 20 years ago, many construction companies begun using construction materials from China, which qualities are much lower than materials manufactured in the U.S. This is causing many flooding incidents with broken pipes and many more are expected to occur.
Most policy holders assume that their insurance agents will take care of the claim until the end, but the reality is very different. Based on my 17 years of experience with over 3,000 claim cases knowledge, insurance companies will only monitor up to the claim application process for cases with large compensation amount. This is because when the settlement amount is high, insurance companies have to monitor their insurance agents more closely. To avoid this, insurance agents often submit the claim applications and do not want to follow through with the rest of the process. This often results in a broken relationship between agent and customer, with customer hiring a new agent. We are able to provide better compensation to our Korean customers based on years of experience gained through working at mainstream community.
Jung Park, PA
Excel Public Adjuster