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I'm just wondering if anyone has had an issue getting licensed, or has heard of people having trouble getting licensed through their state because of ...
I'm just wondering if anyone has had an issue getting licensed, or has heard of people having trouble getting licensed through their state because of poor credit and other negative information on their consumer credit report?
The pre-licensing class specifically mentioned causes for disciplinary action and mentioned "financial irresponsibility" and I was wondering if they check your credit, court files before granting a license?
I don't have a BK at all, but I had some issues a few years ago that resulted in a couple of charge offs and a couple of judgments that are still not satisfied. Hence, my move to a new career so I can get those paid off. It's not for lack of trying. Some older stuff should have fallen off my report, but I know that judgments last longer, correct?
Anyone know whether your credit is considered for a license? I'm in MN if that makes a difference.
I'd hate to take these classes and work so hard only to find out that they won't even license me.
The issue is not getting licensed. You can licensed in any state. The issue is getting hired captive or appointed. In most cases, getting hired captive will be difficult. Depending on the credit, you can still get appointed with most carriers but advances may not be available to you.
Well it's a relief to know that I can still be licensed, and as far as advances, I was never interested in that anyway. I didn't want a situation where someone backed out after I was paid anyway.
I'm more than content just working and being paid as the clients pay. I was thinking of going through a, sorry if the terminology is incorrect, a GA (MGA?). Where several appointments are under one umbrella?
Is this still possible? As far as E & O insurance, is it that I would have a larger premium because I am considered "riskier"? Not that I agree with that though. I may have had some personal issues that affected my income and credit but that doesn't mean I'm dishonest or a risk to someone in my opinion. But I know they have to be careful and assume that some people would be.
Or would even getting E & O be impossible? I'm willing to pay a little more to get it if need be.
I'm interested in life and possibly health. Not interested in anything like LTC or variable products at this time.
If you can afford to go as earned, you will be better off anyway -- you are correct in that assumption.
You will be able to get E&O. You will just want to look for a group or association plan. For example, if you are selling for Foresters, they have a decent plan that is GI for their agents. If you are selling for Assurant, they, too, have a plan that is GI for their agents. Some of the blues have access to such a plan. World Insurance has such a plan. IHIAA (if you are planning to join a health insurance organization) has such a plan. There are more, but those come to mind right away as reasonably priced options.
You can certainly use a GA / MGA / IMO / FMO/ NMO or whatever you want to help you with your contracting. Seeing whereas you are new, I would recommend it. Just make sure that you get upfront written releases before you sign ANY contracts.
Another word of advice: many agents try to start by doing it all. I would recommend getting to know one segment really well and stick with that rather than trying to be everything to everyone.
Tom, since the goal of this board is to actually give people information can you state which health carriers will advance an agent with trashed credit?
Matter of fact - I haven't had even one turn down an applicant so long as they weren't criminal or vectored.
I wouldn't post the carriers on the web based on the topic - but they are out there . . .
Tom
Originally Posted by healthagent
Tom, since the goal of this board is to actually give people information can you state which health carriers will advance an agent with trashed credit?
What does it matter "who" as long as the agent gets the advance?
The advance is on business written for that carrier.
The OP asked if they could sell insurance with bad credit, and some agents typed that they probably wouldn't get advanced - but that wasn't a factual statement.
Just have to know where to look 'eh . . .
Tom
P.s. - John been meaning to strike a deal with your Association to provide your Members with a special discount on my leads - call me sometime . . .
Originally Posted by healthagent
That would indeed be the FMO taking on that liability. If they went to GR direct they'd be denied advances if they were going for a KB contract.
As long as you aren't a felon AND do not presently owe an insurance carrier money - you CAN get appointed with advances with numerous carriers.
Just have to know which ones . . .
Good luck,
Tom
Tom, if they owe an insurance company money as you stated above, the chances are that they have been listed on Vector. With that appearing on their background it is highly doubtful that most insurance companies would appoint them. In fact, you even stated, "...so long as they weren't criminal or vectored...."
What does it matter "who" as long as the agent gets the advance?
The advance is on business written for that carrier.
The OP asked if they could sell insurance with bad credit, and some agents typed that they probably wouldn't get advanced - but that wasn't a factual statement.
Just have to know where to look 'eh . . .
Tom
P.s. - John been meaning to strike a deal with your Association to provide your Members with a special discount on my leads - call me sometime . . .
What does it matter "who?" That's a bit of a naive question. For example, one of my association members left the biz after writing advances for 5 months.
The agency that advanced them demanded that their "debt" be paid within 30 days which for this agent was around $15,000. They considered all advances to be "debt" and the contract had no provision to allow the policies to stay on the books for the advanced to be earned.
After the debt was paid, if the policies stayed on the books the agency would cut them a check...after 12 months.
Turns out a clause in his contact with that agency called for all debt to be "due" upon leaving the agency - that agent is now fighting collections.
I'm not particularly interested in advances at all, so if I'm even appointed and earn as I go, I'm happy.
My main concern is getting licensed since I've read that in MN there is risk of a denial of licensure, which is when the Commerce dept refuses to issue a new license to someone who has previously done something that would have been considered an act worthy of disciplinary action if they had been licensed when they did it. Then on the list of acts that are worthy of disciplinary action is: demonstrating untrustworthiness, incompetence or financial irresponsibility.
I guess I'm wondering if they go through a credit check at the time of licensure or what?
And no, no money owed to an insurance co, no felonies, no bankruptcies, no crimes. Not even a speeding ticket! ;>)
Just a run of a hard time a few years back that I'm trying to clear up. The unpaid judgments are what worry me the most about this situation. But some of this is old and falling off my report finally, though I'm still working on paying the J's.
Any MN agents who have had credit issues and were licensed without problems?
I think it will all depends on the carrier and imo your with I was able to appoint a agent with a vector hit last week with advances. Not something I make a habet of but if it is a smaller amount and payments are being made people will work with you in some cases.
Bad Credit and Getting Licensed
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