Selling for the First Time.
- Thread starter Jimmy Prince
- Start date
Since most people here are L&H (life and health) I think you will find a larger support system for that branch than P&C.
However, I am going into P&C but am relatively new. That is good and bad for you since I can't mentor you but I can tell you a few things starting out on the P&C side. First of all, (and do as I say, not as I do) I would recommend going into life and health first. I have historically been told life and health are easier for licensing than P&C, and a lot of people go to it for the immediate money.
Life insurance in particular is a lot of commission up front and then little in renewals. I'm not sure about the health side though I would imagine it is somewhat similar.
Property and Casualty you make less up front (like 18-20%) but you get about the same for all renewals, which is big for commercial lines.
However, as mentioned, P&C are really difficult for a learning curve and require an assload (insurance term) of servicing while L&H usually need semi-annual followup or whatever you deem to be reasonable contact. You will also find that it is easier to get appointed to sell L&H because there isn't as much liability on a daily basis nor as much money at risk to be lost every day either. I'll tell you right now the hardest part of starting in P&C is getting the ability to sell for carriers; you run into a catch-22 with a chicken vs the egg situation where no one wants to appoint you to sell home and auto unless you have experience and a large book of business but you don't have any carriers at first to get you into that position.
Therefore, you need to go with what is called a "cluster" where they are basically the training-wheels beginner appointments. You pay some sort of fee to the cluster (whether all up front, monthly, or as a portion of commissions you would earn) and get appointments and usually some kind of product training or mentor to talk with. You need to be careful though because some don't let you have the book of business or write the policy up front (they do it on the back end) and some others make you pay a severance fee to take the book away from them. Others don't show your name as the agent on the policy, which might be a little unprofessional (though my only company that I have a gripe with this on is Insurance Noodle, which pisses me off they require to be on the policy but are called Insurance NOODLE.)
Also, as a downside, your E&O (Errors and Omissions) is ridiculously expensive, which owes up to the liability part I mentioned before. We're talking a few grand per year vs L&H where it could be 300-600 per year. E&O is basically the insurance for insurance agents for liability in case you screw up in explaining something or omit a coverage that is super relevant that the insured would have gotten had you mentioned it. Hence the name Errors and Omissions
. Trust me, you could explain Med Pay to someone and they would opt out of it, but those same people might get pissed and sue you if they get into a wreck and need med pay and you never told them about it. The result would have been the same if you mentioned or not for coverage but it avoids potential law suits.
Another thing you will find for P&C is there is less information in terms of organizations for training. Agent Navigator, IHIAA, ILIAA, Mark, Frank, and more that I can't think of right now are all there for life and health. There isn't nearly as much on the internet for P&C, at least from what I have found. Don't worry, if you really are interested in this you will learn what all of those things and people are.
I think I'm just going to make a page for what I've learned here for new people to read. It might be pretty useful
So why the hell am I going into P&C? Because I had a little bit of experience in it from a former job and I'm a masochist. Therefore, I HAVE to do P&C simply because if I don't then no one else in my group of agent friends will and then we all have the same territory to piss on and defend. P&C allows me to double use all leads we all obtain and a better referral system. Since there are probably less P&C agents in the area than the health, life, and financial sector (your mileage may vary) you will have less competition other than the captives and a better support system with other agents for a network.
Some of this might be basic but you're new. Most of this is purely from observation and a little bit of anecdotal reading so I could be off a little bit as well. But a nice benefit to this forum is that people will go and correct you if you're wrong, whether you want them to or not.
And yes, this is what all the cool people do on a Saturday night. Do insurance research for their clients and make themselves successful.
However, I am going into P&C but am relatively new. That is good and bad for you since I can't mentor you but I can tell you a few things starting out on the P&C side. First of all, (and do as I say, not as I do) I would recommend going into life and health first. I have historically been told life and health are easier for licensing than P&C, and a lot of people go to it for the immediate money.
Life insurance in particular is a lot of commission up front and then little in renewals. I'm not sure about the health side though I would imagine it is somewhat similar.
Property and Casualty you make less up front (like 18-20%) but you get about the same for all renewals, which is big for commercial lines.
However, as mentioned, P&C are really difficult for a learning curve and require an assload (insurance term) of servicing while L&H usually need semi-annual followup or whatever you deem to be reasonable contact. You will also find that it is easier to get appointed to sell L&H because there isn't as much liability on a daily basis nor as much money at risk to be lost every day either. I'll tell you right now the hardest part of starting in P&C is getting the ability to sell for carriers; you run into a catch-22 with a chicken vs the egg situation where no one wants to appoint you to sell home and auto unless you have experience and a large book of business but you don't have any carriers at first to get you into that position.
Therefore, you need to go with what is called a "cluster" where they are basically the training-wheels beginner appointments. You pay some sort of fee to the cluster (whether all up front, monthly, or as a portion of commissions you would earn) and get appointments and usually some kind of product training or mentor to talk with. You need to be careful though because some don't let you have the book of business or write the policy up front (they do it on the back end) and some others make you pay a severance fee to take the book away from them. Others don't show your name as the agent on the policy, which might be a little unprofessional (though my only company that I have a gripe with this on is Insurance Noodle, which pisses me off they require to be on the policy but are called Insurance NOODLE.)
Also, as a downside, your E&O (Errors and Omissions) is ridiculously expensive, which owes up to the liability part I mentioned before. We're talking a few grand per year vs L&H where it could be 300-600 per year. E&O is basically the insurance for insurance agents for liability in case you screw up in explaining something or omit a coverage that is super relevant that the insured would have gotten had you mentioned it. Hence the name Errors and Omissions
. Trust me, you could explain Med Pay to someone and they would opt out of it, but those same people might get pissed and sue you if they get into a wreck and need med pay and you never told them about it. The result would have been the same if you mentioned or not for coverage but it avoids potential law suits. Another thing you will find for P&C is there is less information in terms of organizations for training. Agent Navigator, IHIAA, ILIAA, Mark, Frank, and more that I can't think of right now are all there for life and health. There isn't nearly as much on the internet for P&C, at least from what I have found. Don't worry, if you really are interested in this you will learn what all of those things and people are.
I think I'm just going to make a page for what I've learned here for new people to read. It might be pretty useful
So why the hell am I going into P&C? Because I had a little bit of experience in it from a former job and I'm a masochist
. Therefore, I HAVE to do P&C simply because if I don't then no one else in my group of agent friends will and then we all have the same territory to piss on and defend. P&C allows me to double use all leads we all obtain and a better referral system. Since there are probably less P&C agents in the area than the health, life, and financial sector (your mileage may vary) you will have less competition other than the captives and a better support system with other agents for a network.Some of this might be basic but you're new. Most of this is purely from observation and a little bit of anecdotal reading so I could be off a little bit as well. But a nice benefit to this forum is that people will go and correct you if you're wrong, whether you want them to or not.
And yes, this is what all the cool people do on a Saturday night. Do insurance research for their clients and make themselves successful.
- Thread starter
- #13
Jimmy Prince
Expert
- 43
What is NAA and BLC? And if i was to start in the "L&H" Side of it who would i contact for a job? Not family or state farm? Iam confused. But you gave me great info all ready thanks for taking the time.
For the most part it would be best to go with an independent agent/broker for learning. They don't have a vested interested in one particular company, they will have you selling multiple products, and teach you the benefits and disadvantages of companies and products. Being captive for one company only pigeonholes you into certain products.
I'd recommend either going captive with a place that will license you and provide leads or getting licensed on your own then going to an agent/broker will to train you for a larger-than-normal portion of your commission. I learned from Allstate but there were some issues with them and I left; you will find that you probably won't be very satisfied learning from a captive and staying there for long, though that might not be true for you.
If I had to choose a company to be captive for, it would be AAA. Their downsides are big downsides but their upsides are great as well. I just had a meeting with a rep the other day.
Higher than normal commissions for several companies and they only take out 20% of what you would earn whereas others charge a lot more. They also have a decent number of carriers and you have the ability to sell AAA memberships (and by that I mean you are required.) They have a reasonable premium requirement per year as well. They also provide E&O for you and some leads and money to market as a one-time payment and then you earn more as you write people. HOWEVER, they keep the book, it isn't yours. You also have to have your own office and have to brand AAA everywhere because of their lack of advancement in the market. You also have to sell a certain number of the memberships as well. nothing terrible but not being able to own the book and being required to have certain things hanging around my office and not being able to write for other companies was a big thing for me. However, my finacee is interested in it because she wants to do insurance only while going through school and afterwards to help pay off student loans.
AAA is known for P&C, they have very limited life and health. However, they have a good network and provide everything but the office you work in, which is nice. Software, insurance, carriers, marketing money, everything.
You also need to look at more than just the carriers; you need to look at where you will work and how you will market/prospect and your target audience. Will you have an office or is it required for some people? What carriers are big in your market? What insurance will you need besides E&O? BOP and BUP? How long can you go making little money while trying to get the market off the ground?
Just things to think about...
Hope this helps!
That was said tongue in cheek so forget it. Those are churn and burn outfits that you learn from the hard way hence the dummy's guide.
- Thread starter
- #16
Jimmy Prince
Expert
- 43
All great advise and thank you but all a little confuseing right now. But iam sure it will all come together. I dont get why all state farm and american family insist that i have good credit. Mine is not the best but with a job it would get better!!!! I just want to sell insurance not run the company right now. I will look for a independent business to start with. Iam on SS disability so i dont need to make much money right off. but i do want to get off of it someday. (I get gout in my feet hence the SS) and my wife works for the local police dept. so i dont need benifits. it seems so overwhelming but ill get her done.Thanks Guys for all the advise....................Jim
you need some one like mark in griffin.. check out his web site, . he is one of the few imo on this site that will help you, also check out todd, medi (jumping little guy).frank, hooiser daddy... forget P&C, start with life&health...these guys will help. watch who you sign with...read the life section, senior section, read them for a couple of days... and see what direction you want to go in...
- Thread starter
- #18
Jimmy Prince
Expert
- 43
i want to try this.
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But i have to post 10
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posts in order to post a url
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Theres a job i want to try ill send it in a second.
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what do you guys think of this?
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i guess i need a few more
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i still need 3 more posts
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But i have to post 10
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posts in order to post a url
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Theres a job i want to try ill send it in a second.
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what do you guys think of this?
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i guess i need a few more
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i still need 3 more posts
Last edited:
- 7,066
There are a number of us on here that have expertise in different kinds of insurance and most will be willing to help you understand them so you can feel like you are making a well-informed decision.
My area is the senior market with Med Supps. If you would like to learn more give me a call, 573.544.4091.
My area is the senior market with Med Supps. If you would like to learn more give me a call, 573.544.4091.
- Thread starter
- #20
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