I Need Help from a L&H Person, Please

[Verbgravy]

I'm a P&C guy. I do hold a L&H license, but it's from way back when I came up on the captive side.

I'm looking in to purchasing a book that has a couple decent size health accounts. For example there's a $160K'ish (annual) group plan with Anthem. Not understanding the residual or servicing commission on the L&H side, I'm having a hard time valuing it.

The book has a ton of quality P&C and they're not willing to break it up, so I'm trying to figure it out.

Can anyone share a ballpark figure on what an account like that with Anthem might generate annually? It's in CA if that helps. Thanks!

 

[HillbillyJim]

I'm a P&C guy. I do hold a L&H license, but it's from way back when I came up on the captive side.

I'm looking in to purchasing a book that has a couple decent size health accounts. For example there's a $160K'ish (annual) group plan with Anthem. Not understanding the residual or servicing commission on the L&H side, I'm having a hard time valuing it.

The book has a ton of quality P&C and they're not willing to break it up, so I'm trying to figure it out.

Can anyone share a ballpark figure on what an account like that with Anthem might generate annually? It's in CA if that helps. Thanks!

Just guessin' $400K'ish there feller.

 

[EugeneM]

Wanna look at Group Health in monthly increments. 160k AP is probably roughly over 1k/month assuming you are servicing and it and getting all the commission.

Plan on allocating some it for service work or receiving reduced commission to have someone else service it. @ that size you are not going to be able to service them properly being P&C only.

 

[Verbgravy]

Wanna look at Group Health in monthly increments. 160k AP is probably roughly over 1k/month assuming you are servicing and it and getting all the commission. Plan on allocating some it for service work or receiving reduced commission to have someone else service it. @ that size you are not going to be able to service them properly being P&C only.

Thank you. That helps better wrap my head around it. I think I'm taking a pass on the book, but the knowledge is helpful.