Please make that sure you, and all producers in your agency, strictly adhere to the following Nationwide Requirements for New Business. There have been serious concerns from Nationwide about excessive monoline auto, lower limits, and Proof of Prior overrides negatively impacting Nationwide’s book.
Ensuring that your production falls within the required parameters for new business is incredibly important to retain your access to Nationwide. Access has been revoked as a result of ignoring these production requirements on more than one occasion.
Nationwide is a standard preferred carrier. They should not be a go to destination for Monoline, low limits, or Proof of Prior overridden auto policies. Nationwide is looking closely at the mix and metrics of the book and expecting the book to be at or better than state metrics.
Folks, let’s use Nationwide for what is it, a standard Preferred carrier. If you have low limits, Monoline Auto, or no Proof of Prior/No Need for Prior, lets place that with carriers that specialize in those risks, and let Nationwide specialize in Package Preferred business.
(In short, don’t write a policy with Nationwide if you have to bypass the comp rater or override the proof of prior information that their system returns - and don’t select that there is no need for proof of prior. If you have to do this send it somewhere else. Below is an example of the message you will receive in EZLynx if the risk has been rejected by Nationwide
Nationwide, like many carriers, pull levers to control the mix of business within the comparative rater (This was a topic of a recent video we made (https://www.youtube.com/watch?v=na9uRagXing&t=7s ). Agents who maneuver around those levers submit segments of business that Nationwide determines to be less advantageous to have within the book of business. As such they quickly identify agents who are bypassing their control mechanisms, to safeguard the Nationwide book and shut them down, often forever. Don’t be that agent.
PGI New Business Risk Requirements
- No new business should have Current Carrier Overrides. In other words, agent MUST NOT override returned Current Carrier information
- No New Business should originate from outside of the EZLynx Comp Rater
- The mix of business written as “No Need for Prior” should be minuscule
- Policies with credit “No Hit” should not be placed with Nationwide
- No more than 50% of New business should have Prior BI Limits less than or equal to 25/50
- At least 35% of new business must have Home & Car
(The levers built into the rater by Nationwide, account for much of the metrics listed above)
Please refer to the attached guidelines, as well as Nationwide’s Product Insurability Guidelines by state, to make sure you are in compliance. Product Insurability Guidelines can be found online in the “Reference Connect” database under “Tools” in the Nationwide Agent Center Workspace.
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