What is a "Book of Business"?

[zeo]

I know that the Book of Business is all the clients you are an agent to. These are the ones that have done business with you. I also know that in Captive situations, you may not "own" that Book.

But what constitutes the Book? Is it a folder or a spreadsheet with a listing of their data? Is it the file cabinets filled with copies of applications and policies? When someone buys or sells that "book" what does that comprise of? How is the agent of record info affected with the Carriers and each individual "book" they hold of your clients? Does one actively contact those carriers to "move" the Agent of record to the buyer?

The "Book of Business" is arbitrarily referred to, but I and maybe others want to know what that really comprises of in a physical form.

Thanks for your input.

Zeo

 

[Sales71]

Zeo


A BOB is the list of clients that you have. For captive like Farmers and Allstate you have the client list and when you buy for say that book the you pay the agents the mony and the company transfer all the accounts into your name and you get all the future commissions.

Also you can run audits on the computer and break down the policies by home, auto etc. Buying a captive book is easier to handle since the captive company have a good records of the clients and can easy run audits on the book. So maybe the agent you buy from has a file cabinet or actual files. For me all my files are scanned and are online. Hope that helps

 

[zeo]

Zeo


A BOB is the list of clients that you have. For captive like Farmers and Allstate you have the client list and when you buy for say that book the you pay the agents the mony and the company transfer all the accounts into your name and you get all the future commissions.

Also you can run audits on the computer and break down the policies by home, auto etc. Buying a captive book is easier to handle since the captive company have a good records of the clients and can easy run audits on the book. So maybe the agent you buy from has a file cabinet or actual files. For me all my files are scanned and are online. Hope that helps

So is this list a spreadsheet, something kept in a CMS system, or the hard copies or all of the above?

Doesn't that put the client data at risk storing it online? Would there be privacy/HIPPA issues to deal with should that data be hacked? I would hate to think that my SS# gets hacked because some insurance agent put that online somewhere -- just asking.

I know that lists are easy to sort and work with in databases or spreadsheets...but when one turns over a BoB to someone...is it just the listing or all the hard copies, etc?

Although I am not looking to buy or sell a BoB any time soon, I am curious how that all works. It also lends to how I keep things organized.

 

[Sales71]

You can get the hard copies and the list of clients. You also get the office furnature if there is any, computers etc. Its usally part of the deal.

 

[djs]

"Book of Business" is somewhat a fictional term. It really has nothing to do with the list of clients, but for most, it has everything to do with the revenue stream that the clients represent to the agent.

When you buy a book of business, you are buying that revenue stream. Along with that will come a pile of client files, however they are stored and managed. This could be very well documented in a full agency management system, could be a simple excel spreadsheet, or a file cabinet of papers. All depends....

Just keep in mind that a 'book of business' basically refers to the $$$$, not the client names, and it starts to make more sense. After all, if you get a check in the mail for $100, the most important thing is the $100. Who sent it to you is important, but not near as important, as how much it is for.

Dan

 

[Chazm]

And scanning your clients data and putting in on your computer or online is not violating any HIPPA laws. Now, if his computer was stolen he would need to report it to resolve the situation

 

[Sales71]

HIPPA laws I thought this law is related to health insurance. Maybe this is what she is talking about buying a health insurance book.
Everyone wanted to buy my blue cross BOB but I will not sell that.

 

[zeo]

Actually I am not just referring to Health insurance but insurance in general. Some of which would relate to the health of the client.
When we fill out applications, we divulge the health of the client to determine their insurability. So in a manner of speaking, yeah its about the health of the client. HIPAA regulates the security of health information and the security of private data. So if data is compromised including identity data, health data, and financial data, I would think the security of that data would be paramount. I supposed it would depend on the security of the online storage. In my studies for the Life/Health License I believe I read that the client's data had to be stored in a secure environment. I believe it was speaking specifically of home or office space (file cabinets being locked) kind of thing. I believe it indicated the security should be maintained in the event of an audit.

So if the data stored on an online server were to possibly be hacked, wouldn't that insecurity be basically the same thing as an unlocked file cabinet or such?

I appreciate the info on considering the BoB as the $$$ flow. Interesting concept to consider. Of course the money wouldn't flow if there are no clients to service (thus - the list).

 

[Chazm]

Actually I am not just referring to Health insurance but insurance in general. Some of which would relate to the health of the client.
When we fill out applications, we divulge the health of the client to determine their insurability. So in a manner of speaking, yeah its about the health of the client. HIPAA regulates the security of health information and the security of private data. So if data is compromised including identity data, health data, and financial data, I would think the security of that data would be paramount. I supposed it would depend on the security of the online storage. In my studies for the Life/Health License I believe I read that the client's data had to be stored in a secure environment. I believe it was speaking specifically of home or office space (file cabinets being locked) kind of thing. I believe it indicated the security should be maintained in the event of an audit.

So if the data stored on an online server were to possibly be hacked, wouldn't that insecurity be basically the same thing as an unlocked file cabinet or such?

I appreciate the info on considering the BoB as the $$$ flow. Interesting concept to consider. Of course the money wouldn't flow if there are no clients to service (thus - the list).

In all honesty I don't ever even worry about this. My file cabinet is Unlocked at home. And if I stored my info on the internet and it was hacked, I'm sure I wouldn't be in serious trouble...as I wouldn't be the hacker

 

[Sales71]

Zeo
I think ur are being a little paranoid. Even the best systems get hacked like all the credit companies. Identity theft is the biggest crime these days. Police think nothing of it and they refuse to work on the cases.

So since you passed ur test. Start selling and less worries.