Is bad credit history a problem for new life & health agents?

Johnny180 · 01-29-2008, 06:09 PM

Can anyone tell me if a bad credit history such as charged off accounts, delinquent accounts, and even a bankruptcy will prevent someone from becoming a life & health insurance agent with any companies out there? I know insurers do background checks, but I don't know how selective they are. Just wondering if these kind of problems rule out a career in insurance.

Brad Howard · 01-29-2008, 06:14 PM

Depends really, but if you are discharged and this is at some distance in the past there will be some carriers that will appoint you, but likely will not authorize advances.

Johnny180 · 01-29-2008, 06:23 PM

What if it is all fairly current and the bankruptcy is ongoing or just discharged?

HomeService · 01-29-2008, 06:25 PM

You would have trouble in the world of debit- type companies where you collect cash. Not too many folks around here live in that world, but that's where I know you would run into trouble. Just becoming a broker may be slightly easier than going with a big captive.

Brad Howard · 01-30-2008, 08:56 AM

That's tougher. There is probably a carrier that would do it, but it would take your GA supporting you is discussion with that carrier. Just licensed agent in similar situation (not knowing the details of yours) and ING was ok with it and AIG was not. You'll just have to go forward with a few carriers and a good strong GA and see what you get. Good luck with it.

joshril · 02-24-2008, 11:12 PM

Insurance companies are primarily concerned with your having a balance with other insurance carriers. If you have no debit balances with other carriers, you should be ok. Just disclose everything.

Some carriers are even willing to appoint people with debit balances with other carriers...

PM me if you want. I had some credit problems when I got in the business. I can probably point you in the right direction.

Mr. Bill · 02-24-2008, 11:37 PM

Yes I would have to say "it depends" - you should have a detailed explanation of your situation available for carriers ready (at all times). Even in the securities industry, I know a guy who got caught stealing (fingering?) a pack of cigarettes over 30 years ago and it still shows up on his U-4.

StinsonAssurance · 02-25-2008, 03:55 PM

Originally Posted by Mr. Bill

- you should have a detailed explanation of your situation available for carriers ready (at all times).

Excellent advice. I had a few credit issues including a bankruptcy when starting out and as long as I was able to explain things to the prospective carrier I was fine.

Mr. Bill · 02-25-2008, 06:41 PM

Yes and put it in writing (just as you would do a cover letter on a life app) - don't assume the person you're revealing your innermost secrets over the phone to is going to be able to effectively state your case.

krooney · 02-26-2008, 05:18 PM

The only problem that I know that agents who have had bankruptcy on their record, is you have to show the discharge papers from the bankruptcy proceedings, to the state you are licensing with, and as long as you aren't out with any insurance agencies, you should be okay. The other debt, I am not sure about.