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Tie-In Sales. The odd evolution of personal lines insurance has now come full circle in many states. Years ago insurance companies limited agents to only writing auto if the agency also placed the insured’s homeowners with them within a reasonable time (preferably simultaneously). Now many carriers will not write the home if the agency does not also place the autos with the same carrier.

Agencies may need to carefully express these requirements to insureds and prospects to avoid creating the impression of a tie-in sale. Tie-in sales may be illegal in your state and as such, the agency’s E&O policy probably will not provide coverage.

Be extremely clear explaining the agency is only requiring the opportunity to quote both lines, but no requirement exists to purchase both policies from the agency. Advise, if applicable, that if the insured wants a particular homeowners quote the Company requires the customer also purchase an auto policy from the same company. Create a script and train your employees regarding how to address these situations ethically and appropriately.