Need Help Understanding How Wholesalers Work in Texas

jlaggie

New Member
2
I have searched for this so if it has been posted please forgive me. I am a newly licensed agent in Texas. I am currently appointed with Farmers, but decided to go independent. How do appointments work when working with a wholesaler (superior access, insurancenoodle, etc.). I understand they are not direct appointments, but is there any paperwork I need to file with the department of insurance showing that I am working with them? Superior Access told me to talk to TDI. So I emailed TDI and they were not really helpful. Hoping that someone here can give me a straight forward answer. I just want to make sure all my ducks are in a row. Thanks in advance!
 
You'll just need to request contracts from the wholesaler and then send them back in to that wholesaler (not directly to the company unless you're specifically told to do so). Some wholesalers will require a little extra paperwork between you and them, but you're not going to need to alert the DOI that you're working with one.

That doesn't mean there aren't things to look out for when working with a wholesaler. Make sure you understand precisely how your commissions are going to be paid - do they come straight from the insurer, or are they assigned to the wholesaler who then pays you? If you're being advanced, is is the insurer who is advancing you or is the wholesaler advancing you out of their pocket - and in either case, is there interest on the advance? Most importantly, if things go sour between you and the wholesaler, what's the release process (the steps you need to take to get your contracts moved to another wholesaler)? Is it an upfront release, or will you have to stop writing business for six months?

I hope I didn't create more questions than answers!
 
With P&C wholesalers, you usually don't have direct appointments, so there is nothing that will be filed to the department of insurance. The wholesaler will likely appoint you, so they may show up on your license.

With most wholesalers, the wholesalers name is on the policy, not yours. I know this is true with Superior, pretty sure this is true with the Noodle as well. You don't have a direct appointment to the carrier, so you can't be listed.

The harder part for you will be tracking the policies. You'll need a decent management system, since if you ever get direct appointments, you'll start having policies scattered all over the place. You'll need to know where they are, who they are with, etc.

Dan
 
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