Fallon Insurance & Financial Services, LLC

Thank you for letting us know about the complaint filed against our agency by [redacted] on April 11, We appreciate the opportunity to respond to his claim of bait and switch advertising against him We send out letters and quotes to homeowners in the area in order to get them to move their insurance to our agencyThe letter specifically states in the second paragraph “The enclosed quote is based on the purchase price of your home, information from your county’s PVA records, assumptions about your consumer reports, the characteristics of your home and available discounts.” We also ask the prospective customer to “call us for a more precise quote.” The quote itself states “Your actual premium may be higher or lower based on a number of factors, including; additional information you provide or we obtain; the coverages, limits and deductibles you choose; any applicable discounts; additional underwriting and rating criteria; and, depending on your state, the date coverage is purchased or the date coverage becomes effectiveCoverages and discounts are subject to policy terms: conditions, qualifications and availability.” We have included a copy of the letter and quote that We sent to Mr [redacted] and a copy of the accurate Quote that he was given All available discounts were listed on the original quote we sent to Mr***However, when Mr [redacted] called the office for a more precise quote, we found that he was not eligible for all of those discountsSpecifically, he did not qualify for a claim free discount due to previous losses, nor was he eligible for a Home Buyer discount since he was not a new home ownerWe originally quoted the house (based on the purchase price) for coverage of $245,But after speaking to Mr***, found that based on the information he provided, the actual replacement cost of the house is $262,Finally, the “additional information you provide or we obtain”; With Mr***’s permission, included an “Insurance Score” which is based on information from Mr***’s Trans Union credit scoreThe original quote is based on an insurance score of on a to scaleMr***’s consumer reports insurance score returned a which had considerable effect on raising the precise quote Mr [redacted] specifies in his complaint that this is advertising bait and switchWe do not feel that this falls under the definition of bait and switch or bait advertisingFor example, The Revdex.com describes this practice as “’bait’ offer is an alluring but insincere offer to sell a product or service which the advertiser does not intend to sellIts purpose is to switch consumers from buying the advertised merchandise or service, in order to sell something else, usually at a higher price or on a basis more advantageous to the advertiser.” (Retrieved on May 1, from http://Www.Revdex.com.org/council/forbusinesses/code-of-advertising/#bozo)The Merriam Webster dictionary defines bait and switch as “a sales tactic in which a customer is attracted by the advertisement of a low-priced item but is encouraged to buy a higher-priced one.” ("Bait and Switch." Merriam-Webster.comMerriam-Webster, n.dWebMay .) The Commonwealth of Kentucky defines this practice as “an alluring but insincere offer to sell or lease a product, to obtain leads to persons interested in buying merchandise of the type advertised and to switch consumers from the advertised product to another product for a higher price or on a basis more advantageous to the dealer.” (Retrieved on May 1, from http://rnvc.ky.gov/adguide.htm)We do not feel that this instance falls under the title of bait and switch since we are still offering Mr [redacted] the same insurance product (Homeowners Base with EPAE Homeowners Insurance), and the price is different only because he does not qualify for all of the available discounts Thank you again for the opportunity to dispute Mr***’s complaintPlease let us know if you have any further questions or concerns Sincerely, [redacted] Exclusive Agent

Thank you for...

letting us know about the complaint filed against our agency by [redacted] on April 11, 2014. We appreciate the opportunity to respond to his claim of bait and switch advertising against him.
We send out letters and quotes to homeowners in the area in order to get them to move their insurance to our agency. The letter specifically states in the second paragraph “The enclosed quote is based on the purchase price of your home, information from your county’s PVA records, assumptions about your consumer reports, the characteristics of your home and available discounts.” We also ask the prospective customer to “call us for a more precise quote.” The quote itself states “Your actual premium may be higher or lower based on a number of factors, including; additional information you provide or we obtain; the coverages, limits and deductibles you choose; any applicable discounts; additional underwriting and rating criteria; and, depending on your state, the date coverage is purchased or the date coverage becomes effective. Coverages and discounts are subject to policy terms: conditions, qualifications and availability.” We have included a copy of the letter and quote that We sent to Mr. [redacted] and a copy of the accurate Quote that he was given.
All available discounts were listed on the original quote we sent to Mr. [redacted]. However, when Mr. [redacted] called the office for a more precise quote, we found that he was not eligible for all of those discounts. Specifically, he did not qualify for a claim free discount due to previous losses, nor was he eligible for a Home Buyer discount since he was not a new home owner. We originally quoted the house (based on the purchase price) for coverage of $245,000. But after speaking to Mr. [redacted], found that based on the information he provided, the actual replacement cost of the house is $262,891. Finally, the “additional information you provide or we obtain”; With Mr. [redacted]’s permission, included an “Insurance Score” which is based on information from Mr. [redacted]’s Trans Union credit score. The original quote is based on an
insurance score of 1 on a 1 to 16 scale. Mr. [redacted]’s consumer reports insurance score returned a 9 which had considerable effect on raising the precise quote.
Mr. [redacted] specifies in his complaint that this is advertising bait and switch. We do not feel that this falls under the definition of bait and switch or bait advertising. For example, The Revdex.com describes this practice as “’bait’ offer is an alluring but insincere offer to sell a product or service which the advertiser does not intend to sell. Its purpose is to switch consumers from buying the advertised merchandise or service, in order to sell something else, usually at a higher price or on a basis more advantageous to the advertiser.” (Retrieved on May 1, 2014 from http://Www.Revdex.com.org/council/forbusinesses/code-of-advertising/#bozo). The Merriam Webster dictionary defines bait and switch as “a sales tactic in which a customer is attracted by the advertisement of a low-priced item but is encouraged to buy a higher-priced one.” ("Bait and Switch." Merriam-Webster.com. Merriam-Webster, n.d. Web. 1 May 2014. <http2/4/wianmerriarmwebster.corn/dictionary/bait and switch>.) The Commonwealth of Kentucky defines this practice as “an alluring but insincere offer to sell or lease a product, to obtain leads to persons interested in buying merchandise of the type advertised and to switch consumers from the advertised product to another product for a higher price or on a basis more advantageous to the dealer.” (Retrieved on May 1, 2014 from http://rnvc.ky.gov/adguide.htm). We do not feel that this instance falls under the title of bait and switch since we are still offering Mr. [redacted] the same insurance product (Homeowners Base with EPAE Homeowners Insurance), and the price is different only because he does not qualify for all of the available discounts.
Thank you again for the opportunity to dispute Mr. [redacted]’s complaint. Please let us know if you have any further questions or concerns.
Sincerely,
[redacted] 
Exclusive Agent