Is It Standard to Be a Captive 1099 Agent?

[NCAgent]

Most agencies do it as 1099/contractor. It is the captive that bothers me. Usually I look at the likes of NYL, MassMu etc to be captive for life.

What else are you getting from the agency? What type of comp are they giving you? If it is like 50%, they are giving you leads, office space, they do the back end work, etc......then maybe I would consider that.

If all they are giving you is training, are charging you for office space etc. Walk away and get a true contract with ANICO where you are making like 90%, get a mentor and split the first cases with the mentor.

I get the feeling he is referring to ANICO for P&C. They are found in TN so WV isn't out of the question as well. And ANICO P&C I believe IS a captive company.

OP, would you mind confirming if you are selling ANICO life or ANICO home and auto?

And yes, most insurance agents don't know ANICO does captive P&C. That should say something to you...

 

[insurancecareer]

The position would be property/casualty and life.

 

[NCAgent]

Yeah, make sure that you are getting the training you need and with a company that can sell.

About 90% of the problems can be resolved with making a bunch of sales. If you can't do that due to rates and underwriting, learn and move elsewhere. Maybe you can even be a W2 with them.

 

[CaptiveBroke(r)]

The "Good Hands" people...a perfect example of a captive 1099 agent.

 

[djs]

Most P&C agents that work for captive companies are 1099 agents, not employees. I believe IRS even has special treatment for insurance agents to allow this.

The initial investment of training upfront has nothing to do with being an employee. You have to look long term. The nice thing is, if you are 1099, its totally up to you if you go. Of course, it might be a requirement of the contract......


Dan

 

[aacards8]

Run away from this. The captive 1099 P&C company is called ANPAC (American National Property and Casualty). They do have an agent advance plan that you have to write a certain amount of p and c biz each month to validate. If you don't, you rack up debt. The good news is unlike Farmers, when you leave you're not responsible for the debt, but you have to sign a non compete so any business you write is theirs. They have no name recognition and their rates aren't great in CA at least. If you're going to go 1099 go indie.

 

[tiamat]

I started by interviewing with a lot of the big names in my comnunity and 1099 captive seems to be normal. The differences ive seen are in training, compensation, leads, and with or without benefits.

if your going solo might as well be indi

 

[dizzy]

All valid points, read google alerts, and for more information on this foreum. See what is said by both 3rd party and others, before making that decision. Captive mean they change your contract any time, for any reason,your compensation, your retirement package. Additional you may have higher standard of expectation than another agent. Ask to read the contract, take to a lawyer, investigate your options.

 

[tiamat]

Being a 1099 captive sometimes has its benefits. If they offer leads and other resources that you would otherwise be without it can be a great advantage.

If you plan on eventually going Independent take the 1099 captive as a test run to see if this is really what you want to do.

I am currently a W-2 captive agent. The way I look at it. If I can't make it as a captive agent with free resources and a foot in the door to previous customers I would change my mind about making a substantial investment in becoming independent.

Best of luck to you.

 

[triggerpuller1]

I would never go into that situation without a whole lot of perks that I knew I could be highly successful with.