Penn-Star Insurance Company

[To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the responseIf no reason is received your complaint will be closed as Answered] Complaint: [redacted] I am rejecting this response because: The paper work I was given does not state the information they are providing, plus at the time I supplied the agent with the certificates of insurance it was never brought to my attention that there would be additional chargesHad I been aware of this I could have taken different actions.Regards, Jeffrey B***

To Whom It May Concern:Thank you for your inquiry on the above referenced matter.Penn-America Insurance Company (“Penn-America”), a surplus lines insurer in the State of Texas, conducts its business in the State through appointed MGA’s. Those contracted MGA’s quote and... bind business on our behalf through Retail Agents representing the insured.As a surplus lines insurer, Penn-America policies are written on a Minimum & Deposit basis. Meaning the premium charged at the beginning of the policy term is the minimum premium to be charged for the term and a deposit based on actual audited sales figures for the term. A condition of the policy is that Penn-America has the right to examine and audit the insured’s books and records as they relate to our policy at any time during the policy period and up to three years afterward.Penn-America has written the insured’s General Liability policy since April 16, 2008. In the course of a recent audit, it was determined that the insured had substantially higher receipt figures than originally reported. This, in turn, generated an additional premium owed by the insured for the higher exposure.On 05-12-14 the retail agent advised the insured in writing that there was an additional premium owed, requesting immediate payment. On 05-27-14 the retail agent advised insured that if payment not received, the audit would be returned to Penn-America for direct collection. On 07-11-2014, the contracted MGA returned the audit to Penn-America as uncollectable. On 07-14-14 we issued our demand letter to the insured for payment of the additional premium due.On 07-19-14 insured denied owing the additional premium and denied having a policy written with Penn-America. Subsequently, Penn-America provided the insured with copies of the policy for the 13/14 term along with the coverage conditions of the policy, a copy of the completed audit report and copies of correspondence between the retail agent and the insured regarding the additional premium due.Based on the coverage conditions of the policy, the additional premium generated by the audit is due and payable by the insured.Sincerely,Angie CSenior Underwriter

---------- Forwarded message ----------From: J[redacted], Brian <[redacted]@global-indemnity.com>Date: Tue, Jul 19, 2016 at 4:53 PMSubject: RE: Complaint [redacted] - Jeffrey B[redacted] - Policy #[redacted]To: [redacted] <[redacted]@myRevdex.com.org>, "M[redacted], Kimberly" <[redacted]@global-indemnity.com>Cc: "G[redacted], Laura" <[redacted]@global-indemnity.com>[redacted]: My response of June 30 and [redacted]’ response of June 24 addressed the issues raised by the insured.  As stated in my letter, the initial premium was based on the answers and information the insured provided in the signed application submitted.  Based on that information, a quote for the policy was issued to the insured.  That is part of the quote process by insurance carriers.  Note that Section IV – Conditions, paragraph 5.c. Premium Audit of the COMMERICAL GENERAL LIABILITY COVERAGE PART and Section IV – Conditions, paragraph 6.c. Premium Audit of the COMMERICAL UMBRELLA LIABILITY COVERAGE PART of the insured’s policy contain the Premium Audit provision.    The Premium Audit provisions are to protect the company in instances such as this where the insureds understate the extent of their business operations.  Simply put, had accurate information been provided to us, the initial premium quoted would have been higher and any audit premium correspondingly lower.Please be advised that we have addressed the issues to the extent of our ability.  We are not able to continue to be involved in the middle of this issue between Mr. B[redacted] and his agent on an indefinite basis. Best regards, Brian *. J[redacted]Assistant Vice President &Assistant General CounselGlobal Indemnity Group, Inc.A member of Global Indemnity plcThree Bala Plaza EastSuite 300Bala Cynwyd, PA 19004( ###-###-#### office( ###-###-#### fax[redacted]@global-indemnity.com

[To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received your complaint will be closed Administratively Resolved]
 Complaint: [redacted]
I am rejecting this response because:    The audit was completed after the original policy had expired.  Policy ended in April and the Audit was not started until May.    Using that logic they can demand that owe for the previous 3 years also.   You cannot complete an audit and raise the rate on an expired policy.    Once the policy is expired, as it was in April, then you cannot raise the rate for the previous year any more than you can raise the price of a steak the day after I eat it.  IF they wanted to raise my rates then they should have done it BEFORE the policy was expired.   Sounds like they can't get enough money legally so they are trying to make me pay for something I never received.  I never received a bill for insurance during the policy period. 
Regards,
[redacted]

To Whom It May Concern:Thank you for your inquiry on the above referenced matter.Penn-America Insurance Company (“Penn-America”), a surplus
lines insurer in the State of Texas, conducts its business in the State through
appointed MGA’s.  Those contracted MGA’s
quote and...

bind business on our behalf through Retail Agents representing the
insured.As a surplus lines insurer, Penn-America policies are
written on a Minimum & Deposit basis. 
Meaning the premium charged at the beginning of the policy term is the
minimum premium to be charged for the term and a deposit based on actual
audited sales figures for the term.  A
condition of the policy is that Penn-America has the right to examine and audit
the insured’s books and records as they relate to our policy at any time during
the policy period and up to three years afterward.Penn-America has written the insured’s General Liability
policy since April 16, 2008.  In the
course of a recent audit, it was determined that the insured had substantially
higher receipt figures than originally reported.  This, in turn, generated an additional
premium owed by the insured for the higher exposure.On 05-12-14 the retail agent advised the insured in writing
that there was an additional premium owed, requesting immediate payment.  On 05-27-14 the retail agent advised insured
that if payment not received, the audit would be returned to Penn-America for
direct collection.  On 07-11-2014, the
contracted MGA returned the audit to Penn-America as uncollectable.  On 07-14-14 we issued our demand letter to
the insured for payment of the additional premium due.On 07-19-14 insured denied owing the additional premium and
denied having a policy written with Penn-America.  Subsequently, Penn-America provided the
insured with copies of the policy for the 13/14 term along with the coverage
conditions of the policy, a copy of the completed audit report and copies of
correspondence between the retail agent and the insured regarding the
additional premium due.Based on the coverage conditions of the policy, the
additional premium generated by the audit is due and payable by the insured.Sincerely,Angie
CSenior Underwriter

To Whom It May Concern:In response to the insured’s recent rejection of our
explanation regarding the additional premium audit completed by Penn-American
Insurance Company.I have attached documentation from the Texas Department of
Insurance website.  Bottom of Page 2 and
top of Page 3 discuss Premium Audit. 
Texas Department of Insurance specifically states that premium audits
are usually done after the policy expires although can be done before policy
expiration.  Penn-America’s practice is
to complete policy audits of this nature after expiration as it is at that
point where we have a full picture of the insured’s business during the policy
term.  Page 5 provides information to the
insured to get additional help from the Texas Department of Insurance if
insured continues to have a complaint against Penn-America Insurance Company.The attached documentation supports Penn-America’s right to
audit the insured and to collect any additional premiums generated by the
audit.Sincerely,
Angie C[redacted]
Senior Underwriter

[To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received your complaint will be closed as Answered]
 Complaint: [redacted]
I am rejecting this response because: The paper work I was given does not state the information they are providing, plus at the time I supplied the agent with the certificates of insurance it was never brought to my attention that there would be additional charges. Had I been aware of this I could have taken different actions.Regards,
Jeffrey B[redacted]

Review: I had been with this insurance company for over 10 years. I pay a full year premium up front each year. My premium for my business was paid up front for the time from 4/16/2013-4/16/2014 $1857.95. The last month of my policy they sent me an audit form that I filled out and then a few weeks later they said they were raising my premium for the policy of that was ending for the entre previous year and demanding additional premium for $5666.19 for a policy that was already expiring and had never had a claim filed against it in entire 10 years that I had a policy with them. I am refusing to pay because I never agreed to pay this premium and I would not have signed a policy at this amount. They waited until month 12 of the policy to raise the rate for the previous months. I they would have asked for this premium on month 1 they knew I would have canceled the policy so they wait until the end and try to force it out of me with threats. They have now turned it over to a collections agency that calls every few weeks.I have since found a new insurance policy at the original rate that I had signed up with Penn-America.Desired Settlement: I would like to have Revdex.com explain to the company that it isn't right to raise the price of an expired policy and not right to demand payment that was never agreed to by the policy holder.

Business

Response:

To Whom It May Concern:Thank you for your inquiry on the above referenced matter.Penn-America Insurance Company (“Penn-America”), a surplus

lines insurer in the State of Texas, conducts its business in the State through

appointed MGA’s. Those contracted MGA’s

quote and bind business on our behalf through Retail Agents representing the

insured.As a surplus lines insurer, Penn-America policies are

written on a Minimum & Deposit basis.

Meaning the premium charged at the beginning of the policy term is the

minimum premium to be charged for the term and a deposit based on actual

audited sales figures for the term. A

condition of the policy is that Penn-America has the right to examine and audit

the insured’s books and records as they relate to our policy at any time during

the policy period and up to three years afterward.Penn-America has written the insured’s General Liability

policy since April 16, 2008. In the

course of a recent audit, it was determined that the insured had substantially

higher receipt figures than originally reported. This, in turn, generated an additional

premium owed by the insured for the higher exposure.On 05-12-14 the retail agent advised the insured in writing

that there was an additional premium owed, requesting immediate payment. On 05-27-14 the retail agent advised insured

that if payment not received, the audit would be returned to Penn-America for

direct collection. On 07-11-2014, the

contracted MGA returned the audit to Penn-America as uncollectable. On 07-14-14 we issued our demand letter to

the insured for payment of the additional premium due.On 07-19-14 insured denied owing the additional premium and

denied having a policy written with Penn-America. Subsequently, Penn-America provided the

insured with copies of the policy for the 13/14 term along with the coverage

conditions of the policy, a copy of the completed audit report and copies of

correspondence between the retail agent and the insured regarding the

additional premium due.Based on the coverage conditions of the policy, the

additional premium generated by the audit is due and payable by the insured.Sincerely,Angie

CSenior Underwriter

Consumer

Response:

[To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received your complaint will be closed Administratively Resolved]

Review: [redacted]

I am rejecting this response because: The audit was completed after the original policy had expired. Policy ended in April and the Audit was not started until May. Using that logic they can demand that owe for the previous 3 years also. You cannot complete an audit and raise the rate on an expired policy. Once the policy is expired, as it was in April, then you cannot raise the rate for the previous year any more than you can raise the price of a steak the day after I eat it. IF they wanted to raise my rates then they should have done it BEFORE the policy was expired. Sounds like they can't get enough money legally so they are trying to make me pay for something I never received. I never received a bill for insurance during the policy period.

Regards,

Business

Response:

To Whom It May Concern:In response to the insured’s recent rejection of our

explanation regarding the additional premium audit completed by Penn-American

Insurance Company.I have attached documentation from the Texas Department of

Insurance website. Bottom of Page 2 and

top of Page 3 discuss Premium Audit.

Texas Department of Insurance specifically states that premium audits

are usually done after the policy expires although can be done before policy

expiration. Penn-America’s practice is

to complete policy audits of this nature after expiration as it is at that

point where we have a full picture of the insured’s business during the policy

term. Page 5 provides information to the

insured to get additional help from the Texas Department of Insurance if

insured continues to have a complaint against Penn-America Insurance Company.The attached documentation supports Penn-America’s right to

audit the insured and to collect any additional premiums generated by the

audit.Sincerely,Angie C[redacted]Senior Underwriter