Writing Public School Systems

[stuartmoore10]

I have heard that it is realtively easy to get in with these public school systems? Does anyone know truth to that?

An agent was telling me, that with the public systems, they have to put these out to bid. When they put them out to bid, there are only a few markets that will write large school systems, so you just have to get the bid specs into the underwriter first. If you do that, the underwriter does most of the work.

Is that how it works with these systems? Looking for any advice from anyone who has written these before.

Thanks

 

[jdeasy]

I have heard that it is realtively easy to get in with these public school systems? Does anyone know truth to that?

An agent was telling me, that with the public systems, they have to put these out to bid. When they put them out to bid, there are only a few markets that will write large school systems, so you just have to get the bid specs into the underwriter first. If you do that, the underwriter does most of the work.

Is that how it works with these systems? Looking for any advice from anyone who has written these before.

Thanks

Nothing easy about. Especially for the independent agent. It's very political. Most school systems already have someone that does the servicing, ING is the market leader. Great American is trying to make inroads into it.

You really should have a Series 6 if you are going to talk to school system employees. It's very tedious. Very time consuming, but, very rewarding if you are one of the ones that get a foothold.

Parker and Asses have been putting out stories about how they are in the front lines of this and how "easy" it is. If you got that info from P and A, you should know it's bogus.

 

[0b1kanobee]

Are you talking about 403(b) or something else?

 

[atlantainsguy]

It's totally political. Each school system has "endorsed" carriers that essentially buy the endorsement for a percentage of premium. These carriers have the payroll slots you need to do business with the teachers and staff. They are also able to distribute sales materials through internal mailboxes. In addition, they get to meet with faculty and staff in the lounges. As an indy agent, you are almost guaranteed to be shut-out of this formal process.

Some of the big players include TIAA-CFEF, American Fidelity and Horace Mann. They all sell overpriced insurance and high-fee, low-performing 403(b)/TSA plans. This stuff is relatively easy to replace.

That's not to say you can't meet the faculty and staff after hours at their homes. Lists of teachers, etc. are available with home addresses and scrubbed phones where available. Put together a contact program on your own, and you should be able to make a good go of it.

atlantainsguy

 

[briko3]

I've found the teacher market generally isn't good. Most have pensions, not the optional 403b plans and most "think" that the insurance they get through work is enough. They also feel they have good enough benefits.

Anyone else have a different experience?

 

[stuartmoore10]

Sorry I guess I should clear this up. I am talking about the P&C for the systems. For instance XYC public school systems.

Liability for the property, buses. Work Comp for the teachers etc.

 

[ABC]

I went after a school system for their group health. I had a contact that was a principle at one of the elementary schools. She gave me her contact in HR.

The HR contact was more of admin than a decision maker.

I then worked to get the decision makers name to contact them. I got it and I called him every month for 9 months and he would not return my call.

So I am not sure who told you getting the door is easy.

 

[0b1kanobee]

It's totally political. Each school system has "endorsed" carriers that essentially buy the endorsement for a percentage of premium. These carriers have the payroll slots you need to do business with the teachers and staff. They are also able to distribute sales materials through internal mailboxes. In addition, they get to meet with faculty and staff in the lounges. As an indy agent, you are almost guaranteed to be shut-out of this formal process.

Some of the big players include TIAA-CFEF, American Fidelity and Horace Mann. They all sell overpriced insurance and high-fee, low-performing 403(b)/TSA plans. This stuff is relatively easy to replace.

That's not to say you can't meet the faculty and staff after hours at their homes. Lists of teachers, etc. are available with home addresses and scrubbed phones where available. Put together a contact program on your own, and you should be able to make a good go of it.

atlantainsguy

The 403(b) plans that I have seen vary. Some have high fees some have no fees. Low-performing? I would not agree. Your 403(b) can still be in the market or you can have a variable annuity or a FIA, whatever you want. As far as replacing, you have to be an approved vendor. Then you have to be on the vendor list as an agent. There are only so many slots available so this is a niche market. You need to know how the retirement system works backwards and forwards, how social security works, how the DROP plan works along with their sick pay and vacation pay account. Then you have to be able to show them how much they will make at retirement with all these factors and how the 403(b) comes into play so that when they retire they will earn the same amount of money as their last year of teaching. It's not that easy to do...........There is more to it but that is just some of it. Even if you are allowed to get into the schools doesn't mean the Principal of the school will even let you even after you have all your ID badges and everything else.

On top of it all, you have to compete with an account only teachers get that is completely liquid to them after they do DROP. That account is paying 4.5% right now, completely liquid. They can roll as much money as they want into it and it pays really well. The thing is, the reps that handle that special account for them come in a put together a plan which I have described above, pulled out of the liquid account and then put them into various staged products. Most of these reps do a very good job and they specialize in the school system. They know all those components of a teachers plan and life and everything that goes along with it, all the lingo ect. ect. Hard to compete with those guys once that money goes into that high interest bearing completely liquid account.
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I've found the teacher market generally isn't good. Most have pensions, not the optional 403b plans and most "think" that the insurance they get through work is enough. They also feel they have good enough benefits.

Anyone else have a different experience?

You can still have a pension and a 403(b). The teacher's market isn't good unless you specialize in it. Lots to know.......With that said, if you specialize in it, it can be very good. It can also suck. Just depends how you work it like everything else.........

 

[the mayor]

I have heard that it is realtively easy to get in with these public school systems? Does anyone know truth to that?

Thanks

If it was easy...what makes you think someone else hasn't already thought of it?
If it was easy...you would be at the back of a long line.