Becoming an Independent Insurance Agent

[YoungLLChamp]

Re: Becoming a health insurance agent

best post i have seen so far

 

[GoldenKi25]

Thanks for your reply. I found the responses very helpful, but I'm concerned with a couple of things:

"4. Beware of them owning your book of business. The trade off for leads, etc., is that they will usually own your business. So, if you ever leave them for another opportunity, they will keep your business and commissions. (This isn't necessarily a bad thing, especially if you write a ton of business that cancels within first year and then you try to bail out),"

I really don't understand when you refer to the company "owning my book of business." However, I signed a Promissory Note and Security Agreement, which states "that I promise to pay the sum of all indebtedness that I owe, including interest or the maximum legal rate of interest, whichever less." I guess this is what you refer to them owning my block of business.

Also, before I signed up with this company, I tried to find employment with agencies like State Farm and All State, but they were not hiring at the moment.

Thanks for the great input.

 

[Paradigm]

Thanks for your reply. I found the responses very helpful, but I'm concerned with a couple of things:

"4. Beware of them owning your book of business. The trade off for leads, etc., is that they will usually own your business. So, if you ever leave them for another opportunity, they will keep your business and commissions. (This isn't necessarily a bad thing, especially if you write a ton of business that cancels within first year and then you try to bail out),"

I really don't understand when you refer to the company "owning my book of business." However, I signed a Promissory Note and Security Agreement, which states "that I promise to pay the sum of all indebtedness that I owe, including interest or the maximum legal rate of interest, whichever less." I guess this is what you refer to them owning my block of business.

Also, before I signed up with this company, I tried to find employment with agencies like State Farm and All State, but they were not hiring at the moment.

Thanks for the great input.

If you read the contract for any captive carrier there is a clause that says you will not induce or cause any client to replace or cancel their policy within a specified amount of time. This essentially means the client is their's not yours.

 

[jmarkk1]

The warning about them owning your book of business has to do with the idea that they can do anything with your book of business even while you're employed with them. I've worked with an agency that owned every piece of business that I wrote, and my manager would sometimes take business that I wrote and give it to another agent. Also, in this business there is a huge difference between a captive agent and an independent agent. Captives are captive to their agreement and can't go beyond that agreement to help out a client, even if it's in that clients best interest. An independent agent earns the right to have a client and is able to provide the best solution for each clients needs. Independent agents are not "locked" into a one size fits all approach.
Like I said before, there are very few "opportunities" that live up to their promises and so in my estimation being independent is the best way to go. You can still get all the good things that a captive arrangement may offer, but you don't get all the strings attached that will come back to bite you.
You should be glad that you didn't get hired on at Allstate or State Farm, by the way.

 

[dbuckner]

I have been self employed for many years in the real estate industry and am considering a move to the insurance industry. I have not taken the licensing course yet but have been reading your posts to try to gain information about where and how to start. Which companies do you recommend? I am located in Georgia.

 

[TheKoenigGroup]

This has helped me decide to go independent verse captive, my agency was approved today. A million thank you's for this, it would take someone months to get this sort of information all in ONE place!! All 30k of us truly appreciate it!!

 

[Tamera]

i was reading at the beginning of this thread about disqualifications when writing for health. are these still valid questions? wasn't there a new law passed about that health companies can't disqualify on pre-existing conditions? thanks.

 

[treeves]

HealthAgent and all... great advice on "Getting Started". Is there any such advice for "Getting Started in P&C?"

 

[Christin419]

I am going to be selling home, auto,. lfe and health can somebody explain how agents get paid? or direct me somewhere where I can find more info?

 

[Mark]

I am going to be selling home, auto,. lfe and health can somebody explain how agents get paid? or direct me somewhere where I can find more info?

1st you will fill out some contracting paperwork. The paperwork will tell you how much comm you will get paid and everything after the policy has been issued.