Insurance Agent Forum

First off, this forum is awesome!! I am learning so much just by reading. My question is this....

I recently got hired by an agency who represents multiple carriers. I went through the interview process and got the job, just finished my pre-licensing, and will be taking my state exam this Friday. When I interviewed with the company, once they hired me they asked if I had any bankruptcies , or past criminal history, which I said no to. They said great, and I started filling out all the forms for each carrier requesting appointment to sell their products.

Growing up.. to put it quite simply, I was an idiot with my credit. Although I'm on my feet now financially (and married), my credit has still not recovered. I have 1 judgement for a credit card from 2000 that will drop off in a month... (actually it's only still left on Experian... not Transunion or Equifax).

I have some chargoffs and what not..... but no major debts. I think everything totals less than $1500.00.

My main question is... am I going to run into trouble here? Am I going to go through the testing phase and everything, and then not be able to do this job?

Will an insurance company still let me sell their products even though I have bad credit?

I really want to do this, and I've been in sales for years. I'm hoping that my past credit history doesn't prevent me from doing this! Any help or tips, opinions, past experiences, etc would be greatly appreciated! Below is a list of some of the companies that I applied with through this other company. (I'm assuming already that not being captive will help me with getting approved??)

World Insurance
Golden Rule
Assurant Health
AIG - American General
Mutual of Omaha
Illinois Mutual
Peoples Benefit Life Insurance Company
Standard Life
Colorado Bankers Life

If anyone has any suggestions they are greatly appreciated! Thanks so much!!!

[healthagent]

Judging from your post, you'll be just fine.

Thank you so much. Just that simple reply from someone in the business really put me at ease. haha.

Now it's back to reading this forum! Time to continue to learn how to become successful in this business!

Thanks again!

[healthagent]

I got licensed in '03 and my credit was trashed. No BK's but I think my score was in the low 500's - which is trashed. I had no problems at all except for cranking out a letter to Golden Rule. Not a problem.

Hi John,

Thanks so much!! My credit is similar. No Bk's but also in the 500's. What kind of a letter did you have to write to Golden Rule? I'm assuming I will have to do the same.

Thanks again for the help!

[Bob_The_Insurance_Guy]

Don't waste your time writing a letter to GR. Go with the companies that will take you, and get your business up and going. GR will come to you in time.

[healthagent]

That's back when I thought I had to be with GR because they had the cheapest rates. Now I know better.

[Wprice]

I have trashed credit too... Mines in the high 400's medical bills and being a dumb ass kid with credit cards. I've never had much issue with credit concerning getting appointed... Except with State Farm, but I don't have the greatest driving record either, but that changes next year

You guys are the absolute best! Thanks for lifting my spirits after I thought I was not going to be able to work in this business!!! And thanks to anyone who has posted any helpful hints or tips on how to be successful in this business as well! They are all very well written and I know are going to help me a ton from the start

I love this forum!!!!

-Nate

[Insuranceman]

I had trashed credit and filed bankruptsy. The majority of the companies I contracted with are paying me advanced commisions.

[LaffAgent]

Suggestion: Keep working on cleaning up the credit. If you decide you want to get your 6 & 63 and sell variable products, those skeletons in the closet could cause some problems.

[K-Dub]

The only problem I see agents running in to is past medical bills or outstanding debt owed to insurance companies.

I've had agents in the past who had terrible credit and none of the above, then I've had agents who owe a bunch in medical bills...no go!

Based on your original post I think you will be fine!

[salpro22]

Here's a question I just thought of for the new agents coming into the field.

Does your past credit history affect the amount of money a new agent can be advanced? If so, in what ways?

I know that Assurant advances and are familiar with their structure, but not about World or any others. ....

[healthagent]

No. You're either getting appointed and fully advanced or no appointment at all.

[Cenla Agent]

Originally Posted by K-Dub

The only problem I see agents running in to is past medical bills or outstanding debt owed to insurance companies.

I've had agents in the past who had terrible credit and none of the above, then I've had agents who owe a bunch in medical bills...no go!

Based on your original post I think you will be fine!

I guess this shows that some companies have different criteria. I was told by a company last year (one that required a Series 7) that medical bills generally aren't a big problem, but that BK and other bad debt is scrutinized more closely. Of course owing another insurance company is a big issue. My thinking is that the possibility of becoming indebted to them in some way is one main reason why they check your credit in the first place, with the thought being that if you have have a track record of not paying your bills, you might not pay the insurance company either if something happens and you become indebted to them.

My FMO for an MA company told me they have dozens of agents from 2006 that wrote for them for a while and then just stopped writing business and basically disappeared. When the chargebacks started rolling in, the FMO had to repay the MA company and was left holding the bag in many cases.