Insurance Agent Forum

[Vision]

What are the positives and negatives between being a broker, a general agent, and a writing agent(under a GA)?

[healthagent]

If you're an Assurant GA and direct through a RSD you'll start out at 20% commish and after $100,000 is written you go to 25%. After $150,000 is written you get a dedicated underwriter (which is priceless) and a sales assistant. You also get more perks at $250,000 and $500,000 levels. You get bonuses that are only available to GAs and trips - only available to GAs. The downside is almost zero support.

If you're a writing agent under a GA you'll get between 15% to 20% paid direct from Assurant. In theory you get training and support. You cannot ever be paid more than 20% direct from Assurant as a writing agent, no bonuses and no trips. If you GA wants to cut you more than 20% under the table they'd have to do so with a personal check.

[Vision]

Thanks

How does a being a broker compare to a GA?

[al3]

Originally Posted by Vision

Thanks

How does a being a broker compare to a GA?

This won't answer your question but I remember in CA insurance school they went on and on how life/health people are not "allowed" to call themselves 'brokers' as that term is reserved for P&C people. I don't know if that is still the case. Everyone in life/health that I know call themselves 'brokers.'

Al

[Vision]

Unless I was taught incorrectly, MD requires a H&L broker to post a $10k bond before startup.

[Melmunch3]

They require no such thing.

[Vision]

So what is the benefit of becoming a broker?

[Vision]

http://i109.photobucket.com/albums/n...g?t=1187363177

[healthagent]

This is only pertaining to brokerages who act as a third party, collecting fees and premiums from the insurance and passing the premiums onto the insurance carriers. Doesn't apply to what we do.

[healthagent]

This applies to CA and I assure you if you're not confused enough about agent vs broker, after reading this you will be thoroughly confused:

Status of Agent vs. Brokers in California

[arnguy]

In PA, up until a few years ago with regard to Life, Accident & Health, and Fixed Annuities, a distinction was made between brokers and agents. There was an experience requirement and testing. I believe it was the same test given to agents, but with a higher passing grade. The only advantage that I was aware of was that as a broker you did not have to file a form and appointment fee for each company you wanted to represent. All that changed and now the license is issued as a producer and the distinction between broker and agent has been eliminated. Now the appointments are made through the company you wish to represent. Some companies waive the appoint fee other require the producer to send in the appointment fee made payable to the state.