4/2011: WELCOME AARON CARDWELL!!
We are very excited and pleased to announce the addition of our newest associate, Aaron Cardwell, RPLU. Aaron will be serving as Sales Manager for the Southwest Region.
Aaron, a graduate of the University of North Texas, brings with him over 10 years of experience in management and underwriting of Financial Institution Bonds, Directors and Officers Liability, Employment Practices Liability, Fiduciary Liability, Lender Liability, Professional Liability, Errors and Omissions, Cyber Liability, Property, General Liability, and Auto. Aaron is a member of the Professional Liability Underwriting Society. He can be reached at (972)207-7855, or acardwell@lloyd-ins.com.
Please help us welcome Aaron Cardwell to our team!!
2/2011: To our Force Place clients:
If you’ve followed with concern the Force Place insurance flap outlined in a recent AMERICAN BANKER article, this message should provide some relief.
The article targeted large lenders, alleging high rates, over-insuring, backdating, and “kickbacks” to those lenders by insurance companies who provide Force Place coverage. These provide plums for bank bashers, consumer advocates and politicians in need of issues. J. B. Lloyd & Associates, LLC, however, specializes in the “community bank” category, to which you belong, and our transactions differ markedly.
*Force Place rates will always exceed standard, as our underwriters cover all properties regardless of condition. But your rates with us average 1-1.2%, versus samples as high as 2% through the big banks and their underwriters.
*In one Dallas case the large bank force placed coverage on a dwelling for $140,000, when the appraised value was $103,000 and the loan balance was $102,000. That borrower paid a high rate for over insurance. The J. B. Lloyd policy insures for either the loan balance or the last known amount of insurance, which would normally be Replacement Cost.
*To assure continuous coverage Force Place protection from J. B. Lloyd is sometimes “backdated” for a matter of days or weeks to the date the borrower’s coverage lapsed, but it does not duplicate or double bill him for coverage. AMERICAN BANKER cited a case in which coverage was backdated for nine months.
*Some banks may own insurance agencies, and it would be reasonable to pay that agency a commission for force place transactions. But the effective commission in AMERICAN BANKER is 21.5%, roughly double that of agents in the community bank marketplace. Paying even high commissions to licensed agents is legal, but kickbacks to lenders constitute illicit payments.
An insurance agency can no more guarantee you immunity from political damage than fire or hail, but we do pledge to continue operating in a way that minimizes your risk from all these perils. We appreciate your continued support.
