Question

In: Operations Management

Your company, Policy Plan Insurance Services, is a 120-employeeinsurance claims processor based in Milwaukee. Policy...

Your company, Policy Plan Insurance Services, is a 120-employee insurance claims processor based in Milwaukee. Policy Plan has engaged Midwest Sparkleen for interior and exterior cleaning for the past five years. Midwest Sparkleen did exemplary work for the first four years, but after a change of ownership last year, the level of service has plummeted. Offices are no longer cleaned thoroughly, you've had to call the company at least six times to remind them to take care of spills and other messes that they are supposed to address routinely, and they have left toxic cleaning chemicals in a public hallway on several occasions. You have spoken with the owner about your concerns twice in the past three months, but his assurances that service would improve have not resulted in any noticeable improvements. When the evening cleaning crew forgot to lock the lobby door last Thursday - leaving your entire facility vulnerable to theft from midnight until 8:00 a.m. Friday morning - you decided it was time for a change. Write a letter to Jason Allred, owner of Midwest Sparkleen, 4000 South Howell Avenue, Milwaukee, WI 53207, telling him that PolicyPlan will not be renewing its annual cleaning contract with Midwest Sparkleen when the current contract expires at the end of this month. Reference the examples identified above, and keep the tone of your letter professional.

Solutions

Expert Solution

POLICYPLAN INSURANCE

Tel 123-456-7890

[email protected]

Policyplaninsurance.com

March 24, 2014

Jason Allred

Midwest Sparkleen

4000 South Howell Avenue, Milwaukee, WI 53207

Dear Mr. Allred,

As your records will indicate PolicyPlan Insurance has been conducting business with Sparkleen for the past five years, one of which has been under your supervision.

This letter serves as written notice that PolicyPlan Insurance will not be renewing our annual cleaning contract with Midwest Sparkleen; which expires at the end of this month. Over the course of the past year, Sparkleen has failed to meet the standards agreed upon in our contract. I have contacted the company over six times reminding the staff to take care of spills and other messes which are to be addressed routinely as per our contract. In addition to the negligence of daily messes around the office, on more than one occasion Sparkleen’s offices has irresponsibly left toxic cleaning chemicals in the hallway.

Recently, it was brought to my attention that last Thursday (01-02-03) an egregious error was made when the Sparkleen cleaning crew forgot to lock the facilities up, leaving our building vulnerable to theft from midnight Thursday until 8:00 a.m. Friday.

This is inacceptable because of the negligence of Sparkleen’s staff thousands of PolicyPlan’s client’s personal insurance information was left vulnerable. You can imagine the liability and position this mistake placed on the company property and confidential records. At this point, after contacting you personally twice beforehand and the promise of better service left lingering, PolicyPlan Insurance is no longer able to do business with Sparkleen.

Sincerely,

Larry Leever

POLICYPLAN INSURANCE


Related Solutions

your company, Policy Plan Insurance Services, is a 120-employee insurance claims processor based in Milwaukee. Policy...
your company, Policy Plan Insurance Services, is a 120-employee insurance claims processor based in Milwaukee. Policy Plan has engaged Midwest Sparkleen for interior and exterior cleaning for the past five years. Midwest Sparkleen did exemplary work for the first four years, but after a change of ownership last year, the level of service has plummeted. Offices are no longer cleaned thoroughly, you've had to call the company at least six times to remind them to take care of spills and...
Benefits Plus is health insurance company that pays medical and hospital claims of the policy holders....
Benefits Plus is health insurance company that pays medical and hospital claims of the policy holders. In order to have their claims processed, policy holders must submit a claim form. All claims are either mailed or presented in person to Benefits Plus' Claims Processing Department. Claims forms are first checked by claims screening clerks and any incomplete forms are returned to the claimant for completion. Details of those incomplete forms which are returned by mail are first entered in a...
Benefits Plus is health insurance company that pays medical and hospital claims of the policy holders....
Benefits Plus is health insurance company that pays medical and hospital claims of the policy holders. In order to have policyholder’s claims processed, policy holders must submit a claim form. All claims are either mailed or presented in person to Benefits Plus' Claims Processing Department. Claims forms are first checked by Claims Screening Clerks and any incomplete forms are returned to the claimant (policyholder) for completion. Details of those incomplete forms which are returned to the policy holder are first...
Benefits Plus is health insurance company that pays medical and hospital claims of the policy holders....
Benefits Plus is health insurance company that pays medical and hospital claims of the policy holders. In order to have policyholder’s claims processed, policy holders must submit a claim form. All claims are either mailed or presented in person to Benefits Plus' Claims Processing Department. Claims forms are first checked by Claims Screening Clerks and any incomplete forms are returned to the claimant (policyholder) for completion. Details of those incomplete forms which are returned to the policy holder are first...
An automotive insurance company is reviewing a customer's application for a one-year policy. Based on the...
An automotive insurance company is reviewing a customer's application for a one-year policy. Based on the customer's driving history and the insurance company's past experience, the company assumes that the probability of each payout for one year is as shown in the table provided. What is the expected payout for the insurance company? Payout Probability $100,000 0.002 $50,000 0.005 $25,000 0.012 $10,000 0.026 $5,000 0.065 $0 0.89
An insurance company randomly chooses 24 insurance claims from a box containing 200 insurance claims without...
An insurance company randomly chooses 24 insurance claims from a box containing 200 insurance claims without replacement. There are two distinct categories of insurance claims in the box (25 false claims and 175 others). What type of probability distribution can be used to figure out the chance of the insurance company choosing at least 6 false claims from the box?
Based on information from a large insurance company, 67% of all damage liability claims are made...
Based on information from a large insurance company, 67% of all damage liability claims are made by single people under the age of 25. A random sample of 52 claims showed that 43 were made by single people under the age of 25. Does this indicate that the insurance claims of single people under the age of 25 is higher than the national percent reported by the large insurance company? Give the test statistic and your conclusion. a) z =...
Based on information from a large insurance company, 66% of all damage liability claims are made...
Based on information from a large insurance company, 66% of all damage liability claims are made by single people under the age of 25. A random sample of 53 claims showed that 43 were made by single people under the age of 25. Does this indicate that the insurance claims of single people under the age of 25 is higher than the national percent reported by the large insurance company? Give the test statistic and your conclusion. a) z =...
An automotive insurance company wants to predict which filed stolen vehicle claims are fraudulent, based on...
An automotive insurance company wants to predict which filed stolen vehicle claims are fraudulent, based on the mean number of claims submitted per year by the policy holder and whether the policy is a new policy, that is, is one year old or less (coded as 1 = yes, 0 = no). Data from a random sample of 98 automotive insurance claims, organized and stored in InsuranceFraud , show that 49 are fraudulent (coded as 1) and 49 are not...
Based on information from a large insurance company, 67% of all damage liability claims are made...
Based on information from a large insurance company, 67% of all damage liability claims are made by single people under the age of 25. A random sample of 54 claims showed that 44 were made by single people under the age of 25. Does this indicate that the insurance claims of single people under the age of 25 is higher than the national percent reported by the large insurance company? State the null and alternate hypothesis. a) Ho: p =...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT