Farmers Agents and Other Appointments

[JMFillinois]

I was asked about selling for Farmers. I have a couple of questions for anyone who is a former Farmers Agent.

1)Can a Farmer's agent become appointed with another carrier if Farmers declines the business for Life?

2) Can a Farmer's agent become appointed with other carriers for products not offered by Farmers?

Thanks,
JMF

 

[Lyn]

I was asked about selling for Farmers. I have a couple of questions for anyone who is a former Farmers Agent.

1)Can a Farmer's agent become appointed with another carrier if Farmers declines the business for Life?

2) Can a Farmer's agent become appointed with other carriers for products not offered by Farmers?

Thanks,
JMF

If you ask a DM they will tell you yes you can write business outside Farmers as long as they either do not offer the product or have declined the business. I will tell you that although they tolerate some business brokered out, they will not be happy about it and you must keep in mind that none of it will be counted towards your qtrly minimum quotas. Also, price is not a reason for writing outside Farmers. I don't think you can actually be directly appointed by another company for any business because you will be a captive agent. In my district, you wouldn't even think of writing life outside because they have a full line of life products, a little pricy, but rarely declined. If they decline a life product, pretty much anyone else will as well. Also the E&O group policy offered by Farmers will not cover any business written outside Farmers.

 

[Cahall12]

Farmers is very touchy about other appointments. They do allow health providers since they do not offer it, but they offer almost everything else, so they most likely won't allow you to broker out.

 

[Josh]

Farmers is very touchy about other appointments. They do allow health providers since they do not offer it, but they offer almost everything else, so they most likely won't allow you to broker out.

Silly question, why don't agents just go completely indy rather than mess around with Farmers?

 

[Cahall12]

I looked at going indy. I started with State Farm, looked at going indy, then seen Farmers Plan. I decided to give the reserve period a chance and loved it. They offered everything I needed, plus the subsidy is nice. Farmers has allowed me to live the lifestyle I want to. I do think that indy is nice because you can offer the customer multiple avenues, but farmers is the cheapest company in my area, I would have been stupid not to take them up on the offer.

 

[djs]

I thought Farmers changed thier contract for new agents, where they no longer allowed outside brokered business (not sure about health). I would definitely ask someone in the know with the current contracts.

Farmers writes a LOT of stuff nowadays.

Dan

 

[patch36]

I thought Farmers changed thier contract for new agents, where they no longer allowed outside brokered business (not sure about health). I would definitely ask someone in the know with the current contracts.

Farmers writes a LOT of stuff nowadays.

Dan

I was a farmers agent 8 yrs ago and still know some farmers agents. A very tough way to make a living. The new contract does not allow outside appts I have been told.

 

[todd02]

I'm a newly careered agent with farmers. You are correct about the new contract in that they no longer allow you to write new business unless they do not have that line in there product lines.

Note: Farmers new auto rates are 33% more competitive in me area with our new FA2 policy. I'm going to steal your customers that live in dfw area

 

[Cahall12]

Good call Todd. I am also a newly careered agent, and have only been allowed to broker out health. Farmers is a nice way to make a living. As with any insurance opportunity, you have to work hard to make a living.

 

[kman]

Todd02 and Cahall12, try reading the "new" contract that is forced on all new Zarmers agents since 2009. It is online at UFAA.com. The contract clearly states that a new agent CANNOT write ANY business outside of Farmers. ZERO!! Chances are you 2 signed that contract and didn't read it.
- - - - - - - - - - - - - - - - - -
Cahall, where is your agency located? From what I know, Farmers hasn't been "competitive" in ANY line of business in the last 10 years. Their new auto product MAY be more competitive than in the past, but remember that is only the NEW business, not the business that has been on the books for years!!! Farmers current customers (on the books for years) are paying 30 to 50 % more than the "new" business rate and as an agent you can't move your long-term customers over to the new business rate in order to retain your book. All because of the greedy business plan of upper management who gets their bonuses based on gross written premium. By the way Cahall and Todd, the only reason your new business auto rate is even close to being competitive is by Farmers overcharging the in-force auto customer. What do you think will happen to the new biz rate once more and more of the stable, in-force book finds out their being overcharged and leave???? Good luck with your rate structure then.