has anyone here worked with Afffinity Group Management?

Question

:Affinity Group Management
:National Real Estate Insurance Group? 
Wrenn Ins.

I am looking for a P and C agency that can provide property Liability and HO coverage for each of my properties. I saw the above referenced agency mentioned on one of the threads here. Can anyone vouch for them or indicate whether they had a positive or negative experience? There are 3 different names to this agency and thats flag one to me, Second it seems as though they want CC info prior to me getting an actual written quote on each of my properties. Any advice is appreciated.

Steve Babiak · Answer

I have used them in the past, and use them today.  Always made checks payable to "Affinity Group Management".  Never saw unauthorized charges on CC.

Invoices come monthly, via email.

Sara Nobles · Answer

Good afternoon, as the Manager for Affinity Claims Management (ACM), which is contracted by Affinity Group Management (AGM) and National Real Estate Insurance Group (NREIG), I want to step in here, and clarify the points that have been brought up by Ms. MacLean.

She has stated that a “legitimate claim” has been denied through some action of National Real Estate Insurance Group, Affinity Group Management and Cantor Insurance. This statement is not true. As has been stated previously in this thread, none of the aforementioned entities, nor Affinity Claims Management determine coverage, adjudicate, pay or deny claims. Claims are adjudicated and settled by the insurance carrier relative to the respective location. In this instance, the claim was denied based upon factual evidence as determined by the insurance carrier.

The policy provisions cited are used throughout the insurance industry. The location in question was reported by the insured for many months as being occupied, but at the time of the loss, was found to have been vacant for at least six (6) months. Additionally, no steps were taken to protect it in a manner required by the insurance contract. In other words, as with any coverage, the insured has an obligation to not only report the condition and occupancy of the property correctly, but also to protect it from damages if/when it is vacant.

Find out whether you have been sold a Surplus Line Insurance product and contact the Department of Insurance and Financial Services within the state your properties are located to ascertain whether NREIG/AGM hold a license to be selling a Surplus Line Product, despite having you signing up to the Membership Agreement. The link posted by Tim Norris on March 09 2015 is not for Surplus Line Product selling as advised by the state of Michigan Insurance and Financial Services.

• It is important for everyone to understand what Surplus Lines Insurance means. Surplus line insurance does not mean that the product being offered is any different from products being offered by a company that is Admitted and/or Licensed in a particular state. Offering surplus line insurance gives non-admitted companies much more latitude in accepting risks and flexibility of rates that companies regulated by the particular states are allowed. That said, there is much scrutiny of surplus line insurers in the states where they operate to ensure financial solvency of said insurers. The status of being Surplus or non-admitted does not indicate an inability to obtain state specific licenses. The Program chooses to operate as non-admitted in order to provide the best coverages and rates for our clients, many of whom would have difficulty placing insurance through standard markets.

Have you been given a copy of the Master Policy relevant to your insurance coverage?

• The applicable master policies for each location is available electronically to each of our program participants. This is provided on a monthly basis with each invoice that is issued to our clients.

Has your insurance provider changed without any notification been issued to you?

• Per the program participation agreement, which every participant, including Ms. MacLean agreed to, it is specifically stated that our program administrators have the right to change the insurance provider for any location without notification. This is only done without notification, if there is no restriction or deletion of coverages, as is required by law. Coverages do not change when this occurs, unless the replacement coverage is better.

What benefits other than insurance coverage have you gained by signing up to NREIG’s Membership, which you have no option but to agree to at the time of setting up your profile?

• The membership you reference is with the Professional Real Estate Investors and Managers Alliance (PREIMA), of which our insurance program is one of multiple benefits. A synopsis of benefits can be reviewed here:https://preimaonline.com/benefits.html

As stated by Ms. MacLean, this loss is now being litigated against the agents and insurance program administrators; none of which have offered misrepresentation of any kind. Ironically, the property manager and the insurance carrier are not included in the lawsuit. We look forward to this matter being resolved in a court of law in accordance with the facts and the provisions of the coverages that are administered by AGM for the Program participants.

Mark Gallagher · Answer

I have 4 properties currently with Affinity off of the referral of another BP member. Nothing but good experiences, no claims filed to date to review claim handling. Rates beat my current carrier where I had always gotten the lowest rates from.

(Not a paid endorsement!)

Jarred E. · Answer

Ben,

they turned out to be very efficient and so far so good. I currently have 8 properties cover with Loyds through them. They were half the price for the same policy in comparson to my old agency. I also like the people there so thats a plus too

Account Closed · Answer

I have used Affinity for insurance and have had 100% positive experience with them.

Consequently, they will be insuring 25 properties of ours before the end of the week.

Persa Maclean · Answer

@Sara Nobles

Legit Claim: To what factual evidence do you refer?  It certainly isn't the evidence of me declaring my property vacant, or of that fact being recorded in your paperwork, or of you charging me the vacant rate, or of me paying all the necessary premiums.  Please clarify your statement.  Once again and for the last time I offer to upload the documentation confirming the above should you really require it.

Policy Provisions: This utter divergence from the truth is all I have come to expect as the standard behaviour from the companies you represent. Not one of your sentences represents reality and I have the documents to support my sentences.  Why are you so desperate to mislead the public? Again the property was reported vacant and the vacant rate charged.  The property was also secured with steel shutters on all of the external doors and windows.  I have the photographic evidence evidence and an army of people to support this. Would NREIG/AGM & and or ACM have preferred it if I had hired a security team to guard the property too??? Exactly what security requirements were/are required for the Lloyds of London Policy BRIT0100 and where in a client's documentation are such matters addressed when flogging this policy.  I know the answer but I am almost certain that the members of this forum do not know.

Surplus Line Insurance: Given that you believe it is important for clients to fully understand what this means, why do the companies that your represent fail to disclose this information at the point of sale or thereafter?  Why did/does the Master Policy relevant to Lloyds of London BRIT0100 fail to include, as is legally required, the following statement (as advised by the Michigan Department of Insurance and Financial Services:

"This insurance has been placed with an insurer that is not licensed by the state of Michigan. In case of insolvency payment of claims may not be guaranteed."?

Obtaining a copy of the Master Policy: I wanted to laugh whilst reading this, but that would detract from quite how serious this is.  Each monthly statement that I and my associates received neglected and still neglect to provide a link to any Master Policy, or any guidance on how to obtain one.  Why do the companies that your represent not simply provide a link within the monthly statements, or, more pertinently, at the time of coverage been issued?

Program Participation Agreement: If the document you refer to is the Membership Agreement then please clarify who Professional Real Estate Investors & Managers Alliance LLC ("The Association") are and please confirm that it/they really meet the definition of a Purchasing Group.

The Benefits: An example from the link provided is Rent Prep... It appears to me that the discounts are offered regardless of a client's commitment to the Membership Agreement. Once again, please do tell us what actual benefits there are to signing the Membership Agreement.

Litigation: I am indeed involved in litigation and the lawsuit as previously stated may be amended to include others.  That is neither here nor there until the real facts have been presented in a court of law and I can bring a verdict to this forum.  In the meantime, investors/landlords should familiarise themselves with what it truly means to be doing business with the companies you represent.

Persa Maclean · Answer

Sara, please have the common sense to check the facts before posting.  The property was vacant, reported vacant, noted on monthly statements as vacant and the vacant monthly premium charge applied for every month it sat vacant.  For confirmation would you like me to post the monthly statements issued to me by Affinity?  Do you not have copies of the monthly statements issued to me and if not please obtain such copies from Affinity's attorney.

It is rather late in the evening in the UK, but tomorrow I shall address all your other points and share what I can about my claim as well as NREIG/Affinity's handling of my claim and post if you so desire the relevant statements as issued by Affinity confirming that the property was reported vacant and the vacant premium charged to me.

Good night.

Persa Maclean · Answer

Hi to all.

This is the first of several posts I hope to make.  Having joined BP many months ago, the forum has been invaluable to me.  I would now like to give something back and alert you all to the practices of National Real Estate Insurance Group (NREIG), Affinity Group Management and the underwriters for Lloyds of London BRIT0100 Policy, McLarens.

Like many others within the community, I found NREIG & AGM a pleasure to work with despite continual billing errors on my account.  The facade soon fell through after I filed a legitimate claim in excess of $50K (property is a total write off) in February 2013.  This claim has now escalated in to a full-blown lawsuit against Cantor Insurance (based in Southfield, Michigan) and AGM.  Others may soon be named as defendants in the lawsuit.

The lawsuit is still at Discovery Stage, but I have chosen to speak out now for one basic reason: the longer these companies are not publicly condemned, the more landlords will suffer.  The aforementioned parties continue to sell insurance with no care for the consequences that landlords endure as a result when making a claim.

Do you really want to know how legitimate these companies are? If so:

• 1)Find out whether you have been sold a Surplus Line Insurance product and contact the Department of Insurance and Financial Services within the state your properties are located to ascertain whether NREIG/AGM  hold a license to be selling a Surplus Line Product, despite having you signing up to the Membership Agreement. Have you been given a copy of the Master Policy relevant to your insurance coverage?  If not why not?

• 2)Has your insurance provider changed without any notification been issued to you?  And if you are not explicitly aware, would you even know if a change occurred?

• 3)What benefits other than insurance coverage have you gained by signing  up to NREIG’s  Membership, which you have no option but to agree to at the time of setting up your profile?

If you wish to know more then please contact me privately but you will need to provide evidence of who you are and sign a non disclosure before any information relating to the lawsuit can be released.

Jason T. · Answer

I actually work for Wrenn Insurance, National Real Estate Insurance Group, and Affinity Group Managment.  It's kind of a long story but I'll give you the very short version.

Wrenn Insurance had a national insurance program specifically designed for RE investors.  That program was and still is managed by Affinity Group Management, who handles all billing, processing, claims, customer service, etc.

At the beginning of this year we merged with National Real Estate Insurance Group and took on that name for our investment property programs.  Wrenn Insurance is still around, it's just more traditional and local (Kansas City) insurance.  We still have the national RE investment property insurance programs and Affinity Group Management still administers them.

Clear as mud, right?  Anyway, let me know if you need anything or have any questions.

Account Closed · Answer

Jarred, would you mind sharing with us your outcome with Wrenn/Affinity?

I'm actually in the process of choosing what insurance company to go with and these guys have been on my scope for a while.

has anyone here worked with Afffinity Group Management?

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