A Guide to P&C for New Agents and New Agencies

[TwineGroup]

I'm licensed in life, health, and P&C since 1998. I've been working with State Farm and Allstate (I switched around between the two a couple times) up until 5 months ago my husband and I decided just to go independent (he just got licensed for life only about 4 months ago). We just today went and purchased an office space, nothing fancy just something so we can get out "working from home" and all the distractions. Anyhow we're in Dallas, Texas and thus far have only been selling life however my husband wants to go full on and get contracted with some P&C carriers although after reading this forum it seems as though it's not as easy as it was getting contracted with life insurance carriers. Is there anyone here from Texas that would be willing to help us, give us some guidance and direction? Any feedback would be much appreciated!!!

 

[Jagency]

Good Information. If I have more questions what is the best way to reach you.

 

[GB0916]

This is great information. I am in Texas and researching Iroquois as an option, would you be open to chatting with me via email. I have a few questions. [email protected].

Thanks,
George Barrett

 

[MakeSenseIns]

This is some really great information! I wish this was around before I got started in the business! Thank you for sharing!

 

[sunshine28546]

So first off I know this is restarting an old thread but from what I have been reading, (I've utilized the search function!) a majority would prefer an old thread be restarted vs. a new thread with the same questions asked on a previous thread being asked.

So here it goes! I am popping my posting cherry! First off I am from South Eastern NC. I have Life, Accident and Health, Property and Casualty and taking my Med Sup LTC next week. I have sales experience but none in the insurance field. The town we are in is pretty much dominated by a large independent as well as several captives. My husband and I are going to be starting our own independent agency based on the lack of customer service that we have experienced with the previous companies we were with and now with the company we consolidated everything to.

We have already Incorporated and applied for and received our agency license. We are planning on working out of the home to begin with and have looked into a couple of locations for a later time. I want to thank NCAgent for this very informative thread. I have learned so much from it. I have done a ton of reading since joining last month to research an aggregator/cluster company that we ended up meeting face to face with and did not get a warm fuzzy feeling from. Plus the company wanted me to sell under their company name at a certain commission split for 4 years before I would even be able to sell under my own company name. No Thanks...I will knock on doors for 4 years to promote my own name instead of yours! I know that not having experience is going to limit the path that I can take to get up and running but I am prepared for that.

So, here I am back to researching different companies that are here for the actual independent agency not to expand their own agency, and ran across this thread. The reasons that I am not starting out in another agency is because none of them in my area offer a position without a non-compete clause and in this town your next closest agency is over 30 miles away. So that would totally defeat the purpose of trying to work somewhere to get experience to go indy. I was hoping to find someone to mentor with but as soon as they hear that I am looking to be independent they shut down. We have several friends that are wanting to shop us due to the lack of personal service that they are receiving from their current companies. I also have my Real Estate license and have several friends that are in Real Estate and my husband is a superintendent for a custom home builder (think $800,00 plus homes, not spec), so we have a few COI to work for leads as well.

My questions are these:

1) Out of Smart Choice, Iroquois and SIAA it seems as though the former give the most freedom with taking the book should we decide not to stay with them forever, as well as a low start up. Correct? I will be calling them as well but love hearing personal likes as dislikes as well.

2) Any advice on reaching out to someone to mentor us?

3) Any other groups or associations that I can make to network to help us get our name out there? We are going to join the chamber of commerce and a local toastmasters as well as doing several local events.

Thanks again for the amazing thread and all of the comments and input that you all have put out there. And please be gentle lol!

 

[outlander]

Hey Sunshine,

I was pretty much in the same boat and I opted to go with Smart Choice after meeting with the Regional contact here in Colorado. He and I just hit it off from the gitgo. Everyone that I have dealt with at the corp office has been great.

The mentoring I get is pretty much from him and a couple of the other new agents, it's really more just having some comradery get togethers and open communications among the group helping each other and sharing info. I don't think it's the norm of what anyone else would consider mentoring, but it works for me and my style.

As far as networking, check the internet for meetup{dot}com, join some groups that have like interest to you and have fun.

I wish you and your husband the best of fortune, let us know how it works out for you.

 

[sunshine28546]

I was hoping this would kick up a little more conversation than it has

 

[Dvdman]

Sunshine,


This is a great question. I am near Chicago and taking my P&C test next month. I am hoping someone could really give some advice about these 3 companies and which is best.


My questions are these:

1) Out of Smart Choice, Iroquois and SIAA it seems as though the former give the most freedom with taking the book should we decide not to stay with them forever, as well as a low start up. Correct? I will be calling them as well but love hearing personal likes as dislikes as well.

 

[LTS]

I am making a very unorthodox entrance into P&C from primarily Health with a little Life experience. Absolutely zero experience in P&C. I've read several contracts and talked to corresponding reps. A few more to go before I will be in a position to make a decision.

Right now Smart Choice is at the top of my list. Here's what I like:
-Low production quotas.
-A direct appointment right off the bat with a personal lines carrier.
-Write through their agency with a couple more carriers...As production builds to >$50k+ you go direct and your book gets moved to your name. More prestigious insurers added over the years (same as SIAA)
-No entry & exit fee (setup fee for comp rater system is a few hundred bucks)
-Low monthly comp rater fee)
-Reduced pricing for AMS and E&O
-Commission split cap...They won't take more than than $20k in any rolling year
-They are not afraid of people knowing their contract...no NDA required to get it...that says something to me

Dislikes:
-No formal training/education...training quality/quantity is dependent on your regional developer (impressed with the local one so far)
#- I'm still confused by their exit terms...2 year non-compete with insurers to which they appointed you. I got that. The question I have is, what happens to your book if/when you leave and can't work with those carriers anymore? Can't write, but do you get renewals or are those lost to the MGA?
#- They have right of first and last refusal on buying your book should you sell to exit their system. I understand the right of last refusal, trying to wrap my mind around the first refusal.

I'll make more calls.

Does anyone have insights into the question marked with #s?

 

[MGDaddy]

LTS:
Regarding your dislikes, my understanding is this:
1) During the 2 years you can't get your own direct appointment with a carrier you had an appointment with under SC, your policies get non-renewed, at their expiration date, since "agent no-longer represents company." This allows you to re-write that business into other carriers you have at your disposal. Of course, since the policies get non-renewed, there is no commission paid after the expiration date.
2) If you are selling your agency (SC book and non-SC book) you get a purchase offer for both books and submit the SC offer to SC. IF they elect to purchase the SC book (under their First Right of Refusal) they will give you either 5% more or 10% more than the offer you were ready to accept. (The extra % depends on the size of your book.) Sounds like a sweet deal.
You could sell to an immediate family member or an employee who has worked for you at least 1 year and bypass the First Right of Refusal clause.

(I read thru the agreement many times before I signed up)

Good Luck with your agency!