Overwhelmed Newbie!

[BF2010]

Hello,

First off I just wanted to say that I am very glad to have stumbled upon these forums. They have offered a wealth of knowledge; however I have gotten very overwhelmed with everything.

I work for a small payroll company and have been approached by my boss (the owner of the company) about getting licensed. He wants to be able to offer to our client’s group health and also pay-as-you-go workers comp instead of having to pass off all of the referrals with no compensation in return. I am more than willing to do this, however I just want to get a little insight as to what I might be getting myself into? Also if anyone has any advice as to where to start once I am licensed? Is it even feasible to do this without working for another broker/company first?

Thanks in advance!

 

[VolAgent]

Sounds like a really good way to run off your boss's clients.

No surprise, but you are clueless, after all you wouldn't be asking the questions if you knew.

I'd see if I could find a group health or commercial agency and team up with them. Try to work out a deal where you and your boss get a cut of the commission for bringing the client, and the agency does the work. Include a provision that they have to teach you the business so you can help service your clients. Once you know what you are doing, look at how it is going and either keep or ditch the agency.

As much as I like this forum, you are not going to learn enough here to do a good job. You are really going to need someone to go with you on some appointments and learn from in that arena.

 

[WinoBlues]

Read volagent's comments. Then read them again. Trying to do it your boss' way will result in you losing, your boss losing and worst yet your clients losing.

I will only add that after learning the Insurance business you may find that you like it.

If your boss wants to pay for you to get licensed. Cool!

Good luck.

 

[Dave020]

Timing on this is not that great.

California Choice (CalChoice) just introduced a new payroll service "Superior Payroll Solutions" designed to price 20% below the competition. They may be pricing below what your boss offers.

CHOICE Administrators

This was mainly targeted at ADP, Paychex the others who try to undersell independent agents by offering discounts on payroll services to buy group health from the payroll services.

CalChoice puts it back to the agents with standard commissions by offering this new and heavily discounted payroll service.

CalChoice also offers HR Support, full COBRA Support (they own Conexis) along with being California's only true (private) health insurance exchange.

https://www.calchoice.com/Home.aspx

SB 900 (alquist) and SB 890 (Alquist) are progressing in Sacramento right now and would create exchanges in CA prior to Jan 1. Arnold wants them set up at least if not in full operation before his term expires.

Word and Brown anticipates that their exchanges (CalChoice, KPChoice Solution, HSACalifornia, CalChoice 51+, ContractorsChoice, ChoiceBuilder) with affiliated benefit services will likely be the model exchanges for California and perhaps other states--both public and private.

Welcome to CHOICE Administrators

I would expect to see a significant shift of agents who have clients using a payroll service from writing direct to writing though the Choice exchange. Commissions are the same as direct from the carriers, the exchange offers multiple carrier options down to 2 employees, handles admin, HR, COBRA or Cal-COBRA, and now offers all of those clients a discounted payroll system.

 

[BNTRS]

Wino Blues and VolAgent are very correct. Not only does he want to offer insurance, he wants to offer insurance that requires two different licenses, with two different focuses (Life, Accident, Heath and Property Casaulty--unless there is something different about California I don't know).

You are getting youself into something that many people work at as the the sole product they sell, at least for health (assuming major medical) maybe not so much Worker's Comp. Unless you've got nothing else to do besides learn the insurance business and your boss wants to spend a lot of money watching you do that, don't even think about it.

Now, as has been sugested, if you are considering getting licensed and partnering with an agency that specializes in employee benefits and/or business P&C and you are looking to use your licene to collect a split in the commissions that could work. But trying to keep it in house is most likely a big mistake. Many have tried and failed, and ended up worse off than they were before. You really want to piss off a client because you messed up their health insurance plan because you didn't know what you were doing? Think it through, think it through.

 

[Bertolinoins]

Sounds like a really good way to run off your boss's clients.

No surprise, but you are clueless, after all you wouldn't be asking the questions if you knew.

I'd see if I could find a group health or commercial agency and team up with them. Try to work out a deal where you and your boss get a cut of the commission for bringing the client, and the agency does the work. Include a provision that they have to teach you the business so you can help service your clients. Once you know what you are doing, look at how it is going and either keep or ditch the agency.

As much as I like this forum, you are not going to learn enough here to do a good job. You are really going to need someone to go with you on some appointments and learn from in that arena.

This pretty much covers it. If your boss wants somebody to get licensed so he can split commission I can understand that... but you are in way over your head to start out of the gate offering group health and WC. It takes a minimum of 18 months to be even appear knowledgeable when speaking with a HR manager or controller on these topics. You need to realize these people have been through 20+ renewals and will see right through you if you don't know exactly what you are talking about.

 

[ABC]

"Sounds like a really good way to run off your boss's clients."

Volagent is correct.

I love to go up against PEO plans with weak customer services on health plans. It would be even easier to go up against a Payroll company trying to be a broker.

Your boss is a fool!

 

[DS4]

He wants to be able to offer to our client’s group health

Anyone can sell group health insurance. It the service work that takes experience.
I love the telephone calls I get where an agent sold someone a group health plan and now the group has questions/problems the agent can't fix. You will come to know the term, "AOR" very soon.
Your boss show stick to what he knows best.

 

[Dave020]

This just came in my e-mailbox this morning.............

Great news! CaliforniaChoice® now includes an integrated payroll option. Your clients get the same great hassle-free payroll solutions as other companies, but bundled with their medical benefits!

By integrating your clients’ payroll with CaliforniaChoice, you ensure that their information is always accurate and up-to-date. It also means:

• Real-time new hire and termination notifications for you
• Reduced retroactive adds and deletes
• A stronger CaliforniaChoice Exchange – everything your clients need in ONE program
• Payroll field support from E-chx for all enrollment and sales appointments!

How it works.

Payroll is automatically included with all new CaliforniaChoice quotes, just like any other ancillary benefit. You can also quote and add to any of your existing clients - login to www.calchoice.com to get a quote.

How it protects your business.
CHOICE Administrators® Payroll Services is powered by E-chx. Our partnership with E-chx guarantees they will not market or sell group insurance to your clients, so you have the security of knowing your business is protected.