If the intermediary lies and cheats
"Liar, Liar" (after the film)
What can happen to you as a CEO:
In 1976, I came into contact with Maurits (Joop) de Vries. He had his hands in his hair regarding the insurance of his many properties in Amsterdam. Buildings, but also houseboats. It turned out he also owned Casa Rosso, the world-renowned porn show empire. Certainly as well known as the Folies Bergéres in Paris.
Bumped by the nose
Joop had already been tricked several times by intermediaries. They made him pay for insurance policies that were not covered anywhere.
We were specialised in insuring discotheques, pubs and restaurants and Joop had heard from reliable sources that Lugt Sobbe would not be channelled in the event of a claim.
In fact, in all cases we used a questionnaire that the customer had to sign.
Half past five in the evening and then the phone rang
Joop urgently requested our help on the phone to manage his insurance policies.
We did not know him or in what business he made his money, but we invited him for an introduction.
Next day:
Joop didn't waste any time. In anticipation of our conversation, he had boxes and suitcases delivered to our office by taxi: these contained the entire administration of policies and property deeds and these were placed in the hallway at No 14 Hobbemastraat, pardantly.
We also found in it numerous notarial deeds and many addresses where insured interests should be located. But the corresponding policies were mostly not found. On checking the policies, most of them turned out to be untrue. Everywhere the description of the business had been tampered with. And if the description is wrong, insurers do not cover the damage. A waste of money! Sometimes the interests had even been sold long ago, so there was no longer an insurable interest. Or the policies were still in the name of the previous owner. Pointless to keep paying premiums for that.
As tame as a sheep
I was not really happy with this particular customer, but Joop was as tame as a sheep and swore to me that he would do whatever it took to be properly insured. At last he understood why his policies never covered the claim.
An illiterate yet entrepreneur
Joop turned out not to be able to read or write, so he could never check the documents himself.
From now on everyone's payroll
A bank manager was even hired to keep adequate accounts. After all, without proper bookkeeping, there can be no business indemnity insurance.
Black money became white
From now on, payroll taxes and social security contributions were paid. Incidentally, I never expected him to take all the advice without hesitation, which would have been a good excuse for me to part ways.
Medical check-up
A doctor regularly checked the health of ladies and gentlemen performers from now on.
Special. Literally every attempt to get rid of the client was parried by Joop.
Lloyd's of London
The Dutch insurance market was unwilling to insure the empire.
I could only interest Lloyd's of London (with difficulty) in insuring the substantial portfolio of policies.
Bouviers
Joop always paid the premiums immediately and in cash.
You would then chase his two bouviers off a Persian carpet they were guarding, he would knock the carpet over and then put hundreds of banknotes in a plastic bag.
With a plastic bag attached to the handlebars of my bicycle, I would then ride over the ramparts.
Natal didn't do it, because he would have found that insulting.
Porsche to the Philistines
One day, Joop had his dogs babysit a customer's expensive Porsche.
Street boys thought it would be fun to tease the dogs. When the owner returned, he found that little was left of the interior: the dogs had destroyed everything in a frenzy. Unfortunately, he had not taken out insurance with us for guarding with dogs, so once again the damage was not covered. He understood that.
November 1983: End of story
One day, Joop was arrested after a scuffle with a German who was in the process of assaulting a prostitute. That was in the autumn of 1982 I think.
A case officer from Heemstede
A case officer was appointed (I seem to remember the man's name was Toorenaar). Master Toorenaar liked to pretend to be a distinguished demanding man.
Assurance broker Pennink
Toorenaar had a relationship with one Penning who had sold his business to the posh brokerage firm Bekouw Mendes in Amsterdam.
"Every advantage has its disadvantage" (after Cruijff)
Pennink indeed turned out to be a much better broker than yours truly.
Ten fetch one pay
Pennink indeed managed to achieve a significant premium reduction immediately.
The premium fell to a fraction of the amount Joop owed us annually.
December 1983 : Fire at Sex club Casa Rosso
Casa Rosso burned to the ground. The non-combustible carpet I advised was no match for the many litres of petrol poured over the steps of Casa Rosso by an ex-employee and then ignited. 13 people perished in the flames.
Extra news NOS :
Extra broadcast of the NOS Journaal (click for video) regarding the major fire at nightclub Casa Rosso Amsterdam that killed 13 people. 5 Broadcasted on Saturday 17 December 1983.
Bekouw Mendes was already a prominent real estate agent at the time. As the Dutch market was not interested, Pennink had placed the insurance for Casa Rosso's interests with Lloyd's Underwriters, as we did.
Hotel, Fitness with Bingo
Pennink, however, had managed to insure Casa Rosso at a 90 per cent discount by deceiving insurers that it was a Hotel with fitness centre. It would also be home to a Bingo !
Misrepresentation
And again Joop had policies in place that would not cover the damage. That also explained the huge difference in premium. Misrepresentation falls under concealment.
In fact, a deliberate lie: deliberate concealment by employee Pennink and his staff at Bekouw Mendes !
Damages of 24 million rejected
Consciously cheating : a Deadly Sin! Especially for a sworn real estate agent.
So Lloyd's Underwriters refused to pay the damages.
Joop never recovered from the blow. The whole state of the fire, casualties, etc. ultimately ruined Joop anyway.
I never spoke to him again, so I was also never able to ask him whether case officer Toorenaar and Mr Penning took care of the damages on their own account. Joop de Vries died shortly afterwards.
I doubt whether Pennink/Toorenaar was ever charged with forgery.
A hefty prison sentence actually seems appropriate to me. But well, that would have meant a huge loss of face for Bekouw Mendes as well.
And the so distinguished case officer Toorenaar is thanked for his good services !
At Lloyd's, the saying is always still :
Confidence comes on foot and goes on horseback (transl. a good reputation is gained on foot, but goes on horseback if you cheat).
A professional indemnity insurance policy, by the way, does not provide cover against purposefully defrauding insurers. Selling the business is then the remaining alternative.
Shortly afterwards, the famous broker Bekouw Mendes was taken over by the English broker Bowrings.
You’l regret being the CEO of it.....