Broker VS Agent

[Surancedawg]

I think the only state where this game of semantics really matters is New Mexico. They have 3 different insurance producer classes (and a license for each): Agent, Broker and Fraternal. But if you are going to be a "broker" in that state as its understood in Final Expense, you'll need an Agent license....and a Fraternal license if you plan to offer RNA, Foresters, etc.

 

[ccage]

I have seen you asking about this before, so let me try my best to explain. "Broker" is a very loose term on the life and health side. Meaning, there really is no such thing. There is on the P&C and investment side of things....to my understanding.

When we say broker on the life/health side, we are usually simply talking about someone who has some agents under them as a downline. It is also usually used in referring to someone that has multiple companies in his bag along with the downlines.

So, now we have someone with downlines, which is also known as an agency. The broker can also be known as a General Agency (GA) or Managing General Agent (MGA). Once again, these are loose terms as well. For instance, some companies will label a certain level as MGA, but it can be also represent their street level, which anyone can get....but that doesn't necessarily make them an MGA by true definition.

So now we have Broker, GA, and MGA...which can all mean the same thing. An IMO is usually an organization on the life side that concentrates on recruiting and usually all over, not just in a local area or state. The term can also be reflected by certain companies contract levels. For instance, Foresters has IMO, IMO1 & IMO2, and IMO3 levels. They also have NMO levels. (National Marketing Organization). NMO's you might could refer as a super IMO if you will.

If you hear the term FMO (Field Marketing Organization), that is the same as an IMO, but more on the health side.

Right now, you just want to be an agent. You're new, so you really don't want to be hiring agents at this point. You wouldn't be able to teach them. You might grow into that.

I will caution you though....agents can take up a lot of your time. Think twice in the future before hiring any.

I hope this helps sort it out for you.

MY BAD I HIT THE WRONG BUTTON and accidentally reposted... But your saying there is really no difference between a GA and an MGA just title on Contract.

 

[Todd King]

MY BAD I HIT THE WRONG BUTTON and accidentally reposted... But your saying there is really no difference between a GA and an MGA just title on Contract.

Pretty much. To give you an extreme example of this, an MGA with Mutual of Omaha is the absolute top contract. With other companies it's either IMO or NMO.

 

[ccage]

Pretty much. To give you an extreme example of this, an MGA with Mutual of Omaha is the absolute top contract. With other companies it's either IMO or NMO.

LOL, that is crazy.. Just out of curiosity, do you know what the level of contract are at LH, just curious because I met an MGA, and he is one of the ones who makes it sound like it's an unattainable feat. I have been told that some MGA's do that just to hype themselves up.

 

[Todd King]

LOL, that is crazy.. Just out of curiosity, do you know what the level of contract are at LH, just curious because I met an MGA, and he is one of the ones who makes it sound like it's an unattainable feat. I have been told that some MGA's do that just to hype themselves up.

Yeah, the LH MGA is going to feed you hype of all kinds. As I said to you before....don't worry or do anything with LH unless you are just looking for the training aspect. Many ways to get that training than working with a company that is sky high with its premiums.

 

[ccage]

Yeah, the LH MGA is going to feed you hype of all kinds. As I said to you before....don't worry or do anything with LH unless you are just looking for the training aspect. Many ways to get that training than working with a company that is sky high with its premiums.

Too Funny.. Are there premiums really that expensive compared to others. How to those agents not have alot of chargebacks with agents out pricing them, or I should say even sell the product to begin with. Or is one of those companies that has a lot of turnover and just the really good ones make it.

 

[Todd King]

Too Funny.. Are there premiums really that expensive compared to others. How to those agents not have alot of chargebacks with agents out pricing them, or I should say even sell the product to begin with. Or is one of those companies that has a lot of turnover and just the really good ones make it.

They do have a lot of chargebacks. This is one of the reasons why so many of them get put on Vector. And yes, a tremendous amount of turnover.

 

[NSRH]

I've actually found that most of the Vectors that come from LH agents is due to lead debt. Vector says that lead debt shouldnt be reported, but I know of a handful of companies that still do it.

Many carriers dont honor vectors from those handful of carriers.

 

[THE WOLF MINDSET]

I've actually found that most of the Vectors that come from LH agents is due to lead debt. Vector says that lead debt shouldnt be reported, but I know of a handful of companies that still do it.

Many carriers dont honor vectors from those handful of carriers.

I have heard they require there agents to buy 20 a week, at like $30 or $35 a pop. And in some cases they will front you the leads. That is probably where the debt comes. And they are like the Military and want everything done there way, so they want you using there in house leads and not self generating.

 

[HoosierLife]

62FNT $20k