Which practice supports fair competition in bidding?

• A. Not shopping quotes
• B. Not contacting insurers at all
• C. Always request bids from all insurers
• D. Abstaining from locking up markets by contacting insurers from which you have no intention of requesting bids

Answer: (D)

Promoting fair competition in bidding means avoiding actions that could tilt the field or steer business to certain insurers. Reaching out to carriers you have no intention of asking for bids creates a signal that some insurers are favored or that you’re trying to lock in market terms, which can deter other qualified bidders and undermine true competition. By abstaining from contacting those insurers, you keep the bidding open to any eligible and interested carriers, allowing them to compete on price, terms, and service.

This approach helps maintain transparency and fairness in the process, reducing the risk of anti-competitive behavior and ensuring you get genuine market prices. It’s not about avoiding outreach altogether or rigidly listing every insurer; it’s about not signaling or pre-selecting bidders in a way that narrows competition.