Appointments, E&O and LLC's.

vegas_agent · 03-28-2008, 10:05 PM

First of all let me say that in my opinion this is the best resource for insurance information on the web. I have been licensed since 2004 to sell P&C, L&H and Surety in Nevada but I've been working for an agency that only sells home and auto. I'm looking to start my own life and health agency on the side and have a few questions:

1. If a company is willing to appoint me either as a individual or as an agency should I just save the money that I would spend on the LLC, Agency License, etc.. and let them appoint me as an individual independent contractor? Would I still need e&o?

2. Napa seems to have the best prices for E&O insurance here in Nevada are there any other suggestions?

3. Is 1m/1m an acceptable limit of e&o? I realize that this is a loaded question but just for the hell of it I'm asking.

4. If a company is B++ would you feel comfortable selling the product if their customer satisfaction is good?

Thanks in advance everyone!

insuremojo · 03-29-2008, 12:02 AM

Originally Posted by vegas_agent

First of all let me say that in my opinion this is the best resource for insurance information on the web. I have been licensed since 2004 to sell P&C, L&H and Surety in Nevada but I've been working for an agency that only sells home and auto. I'm looking to start my own life and health agency on the side and have a few questions:

1. If a company is willing to appoint me either as a individual or as an agency should I just save the money that I would spend on the LLC, Agency License, etc.. and let them appoint me as an individual independent contractor? Would I still need e&o?

There are tax advantages to an LLC but it's not necessary, companies will appoint you as an individual. Most companies won't appoint you without E&O.

2. Napa seems to have the best prices for E&O insurance here in Nevada are there any other suggestions?

I use Affinity for my E&O, good price but haven't shopped it around in awhile.

3. Is 1m/1m an acceptable limit of e&o? I realize that this is a loaded question but just for the hell of it I'm asking.

You should get 1ml/3ml.

4. If a company is B++ would you feel comfortable selling the product if their customer satisfaction is good?

Depends on their products. If they had good products then I would consider it.

Your agency doesn't sell life or health products? That sucks.

InsuranceBenefitsGroup · 03-29-2008, 02:16 AM

Hello. Incorporate or LLC, as the benefits are crucial. When you make big money, you'll save a lot on self employment tax. Also, the corp/llc shields you from liability. Spend the dough and also get E&O with a min of 1M. Best of luck!

dvdbazz · 04-04-2008, 06:42 PM

I need e&o any suggestions needed soon

dvdbazz · 04-04-2008, 06:47 PM

Originally Posted by dvdbazz

I need e&o any suggestions needed soon

joshril · 04-05-2008, 01:47 PM

NAPA

joshril · 04-05-2008, 01:48 PM

National Association of Professional Agents (NAPA)

TXINSURANCE · 04-05-2008, 03:57 PM

You need E&O individual or corp.

You need appointments and license(s) individual and corp.

Most agents I know start as individual then later go to corp. due to costs and other issues that might make it prohibitive if you are starting out without massive capital.

Kori1970 · 04-05-2008, 04:24 PM

What if you have bad credit? Does that matter to get E&O?

TXINSURANCE · 04-05-2008, 06:22 PM

I don't think they check my credit when I bought E&O. They may have asked some questions though I don't recall.

E&O is not an individual policy it is typically a group type policy that covers its members (like an association). Most carriers sponsor E&O as well - contact the major carriers (who may check your credit) that you are intended to represent.