Insurance Agent Forum

[success2009]

I live in Florida and am currently taking pre-license classes to get my 215 license.

I understand that many companies in dealing with financials expect their employees to have good credit.

Unfortunately, I have been divorced twice and have credit issues relating to divorce.

My question is...
Which companies are ones that are not going to require you to be stellar credit...

And is working for an agency/small independent agency a better way to go.

I really need the training offered by the larger companies.

Thanks...

[squeed]

Section 606 of the FCRA, subsection D, paragraph 2

Fair Credit Reporting Act

It's illegal for a company to check your credit for the purposes of employment. Or better stated, it is illegal for a credit reporting agency to provide a credit report to a potential employer for the purposes of employment.

They may WANT you to have good credit, but by law they can't require it.

-S

[arnguy]

Originally Posted by squeed

Section 606 of the FCRA, subsection D, paragraph 2

Fair Credit Reporting Act

It's illegal for a company to check your credit for the purposes of employment. Or better stated, it is illegal for a credit reporting agency to provide a credit report to a potential employer for the purposes of employment.

They may WANT you to have good credit, but by law they can't require it.

-S

You are absolutely wrong! You had better read that section again. Inasmuch as the insurance companies do disclose in writing that they may procure a credit report on an agent applying for an appointment they are within the scope of the law. I would venture to say that almost all insurance companies have thstatement in their applications for appointment.

[squeed]

Only if he gives them permission. An employer or potential employer must get your written permission before accessing your credit report.

The words "granting permission" can't be buried in the job application form or other document. He would have to sign separately to give his approval.

[SalemInsuranceGuy]

Originally Posted by success2009

I live in Florida and am currently taking pre-license classes to get my 215 license.

I understand that many companies in dealing with financials expect their employees to have good credit.

Unfortunately, I have been divorced twice and have credit issues relating to divorce.

My question is...
Which companies are ones that are not going to require you to be stellar credit...

And is working for an agency/small independent agency a better way to go.

I really need the training offered by the larger companies.

Thanks...

I don't think bad credit is a huge issue. They are looking more for financial fraud, illegal activities like embezzling, and outstanding debit balances on a VECTOR 1 report from any former insurance company you owe money to but didn't work out a repayment plan. Even with a VECTOR 1 some companies will still take you, but may not give you an advance.
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Originally Posted by squeed

Section 606 of the FCRA, subsection D, paragraph 2

Fair Credit Reporting Act

It's illegal for a company to check your credit for the purposes of employment. Or better stated, it is illegal for a credit reporting agency to provide a credit report to a potential employer for the purposes of employment.

They may WANT you to have good credit, but by law they can't require it.

-S

Unless it's the Federal Government and they require you to have a security clearance. Credit problems are the number one reason people lose their security clearances.

[arnguy]

Originally Posted by squeed

Only if he gives them permission. An employer or potential employer must get your written permission before accessing your credit report.

The words "granting permission" can't be buried in the job application form or other document. He would have to sign separately to give his approval.

That is true, squeed, but every agent appointment I have seen does clearly state that the insurance company may secure a credit credit report. It is clearly stated and not hidden in the application and when you sign the application you are agreeing to the possibility that a credit report may be pulled on you. The credit reporting agency or agencies will notify you by mail that a credit report has been pulled on you. Trust me, the insurance companies have in-house legal departments that have scrutinized the appointment applications to ensure that they fully comply with the law. Thus, they may pull a credit report whether you like it or not, and you cannot successfully use the defense that you did not agree to it!

If you have bad credit you may be denied employment by the insurance company. It is not illegal for them to do so. However, most companies will hire an agent, assuming there are no other issues, but will in most cases deny advances to an agent with bad credit. That agent will in all likelihood be hired on a paid "as earned" contract.

[SalemInsuranceGuy]

Originally Posted by squeed

Section 606 of the FCRA, subsection D, paragraph 2

Fair Credit Reporting Act

It's illegal for a company to check your credit for the purposes of employment. Or better stated, it is illegal for a credit reporting agency to provide a credit report to a potential employer for the purposes of employment.

They may WANT you to have good credit, but by law they can't require it.

-S

Section 606 of the FCRA, subsection D, paragraph 2 states:

"Inquiries. A consumer reporting agency shall not make an inquiry for the purpose of preparing an investigative consumer report on a consumer for employment purposes if the making of the inquiry by an employer or prospective employer of the consumer would violate any applicable Federal or State equal employment opportunity law or regulation."

Nowhere does it say you can't deny someone employment because they have bad credit. It just says you can't violate any Federal or State equal employment opportunity law or regulation. A prospective employer may indeed deny you employment based on bad credit.

Think about it. Do you want someone who is having serious financial troubles handling your money if you're an employer? People with bad credit are a higher risk for stealing, fraud, embezzling, etc. than someone who has good finances.

[success2009]

Thanks for all the replys, let me ask a better question.

I know that companies like State Farm are very credit sensitive because of the programs they offer agents. I am sure with bad credit I would not be considered a good candidate to them.

So which companies would be a good starting point for someone with no insurance (but plenty of business experience and a good education) experience and poor credit...?

Just looking for a break in the business, at 41, I realize its a late start but I have a desire to work in the field because I love sales.

[SalemInsuranceGuy]

Originally Posted by success2009

Thanks for all the replys, let me ask a better question.

I know that companies like State Farm are very credit sensitive because of the programs they offer agents. I am sure with bad credit I would not be considered a good candidate to them.

So which companies would be a good starting point for someone with no insurance (but plenty of business experience and a good education) experience and poor credit...?

Just looking for a break in the business, at 41, I realize its a late start but I have a desire to work in the field because I love sales.

I think some of the companies like State Farm are actually looking for you to purchase an agency somewhere down the line and will be more credit sensitive. I'd recommend deciding what type of insurance you want to sell, then find a good IMO or FMO. Also some insurance companies will advance you and some won't. You'll always find someone that will if you keep looking. If you go with an independent agency as an employee they may pay you a base plus as earned commissions so the credit wouldn't matter that much anyway. Like I mentioned before as long as you're not showing up on a VECTOR 1 hit as owing an insurance company money from an unpaid debit balance you should have decent success. Talk to every company, agency, and indpendent you like. What's the worst they can do, say no? Sometimes credit may look bad on paper but if you actually get to talk to someone and explain, hey I know this looks bad, but this is how I got into this mess and since then I've learned this, and here is my plan forward to get out of it and stay out of it. Sell yourself and someone will gladly take you. Keep us posted on your success.
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Originally Posted by greenman

...and 41 is not old. Agency is something you can do well into your 70's or beyond - mind you, it will not be "full-time" at that age, but you will be reaping all of the benefits of your years hard work.

So true. I've been in and out of the insurance business since I was 23 and I'm 46 now. I have two career passions. One is doing government contract work and the other is insurance. Both are forgiving and easy to get in and out of. I don't ever plan to stop selling insurance and retire. As you said the hours may be less, but I would still enjoy selling a few policies in my 70s. I don't know anyone growing up as a kid who said I want to be an insurance agent when I grow up. I ended up selling insurance as a last resort in a poor economy in the 80s. It turned out to be one of the best moves I ever made.

[SalemInsuranceGuy]

Originally Posted by Legion

If you learn nothing else from this site, learn this: It is better to be at the bottom of a ladder you wish to climb, than halfway up a ladder you are not committed to being on.

Great advice. Where were you 20 years ago when I needed to hear this?

[IvyLane]

In this economic climate I think they need to amend that stipulation..I mean the insurance companies themselves have filed for bk so its kinda hypocritical to exclude someone from working with you due to their personal credit issues

[DUDE]

Can anyone explain how Vector works? is there a way i can find out if i have a vector hit without applying fir a new contract

[magagent]

DUDE, do you owe any money to insurance companies or a GA? Every insurance company does not automatically put a "vector" on you just because you have a chargeback. Every insurance company will not "check" your vector before they appoint you, some do and some do not.

[Markingriffin]

Originally Posted by DUDE

can anyone explain how Vector works? is there a way i can find out if i have a vector hit without applying fir a new contract

Their phone number is 888-607-0555

Call that number.

[TheSalesWolf]

Recently I started counting agents that have filed for bankruptcy when they fill out new agent appointments through us. Recently the percentage has increased to almost 35% of agents thorugh our agency have filed for bankruptcy sometime over the past 7 years. 35% That's a staggering number however I have never had one agent have a problem obtaining appointments from any carriers like: United Health, Humana, Assurant, Aetna, IAC, ING, AIG, Fidelity, United of Omaha. etc... The only agents that I have had issues with are agents that owe other insurance companies money. You get a $3,000 chargeback for an Annuity or Life Insurance policy then walk away from producing for that company. Obviously the other carriers are going to be interested in that.

[tcarlj]

Heres an odd situation for you, just so you know ins companies DO look at credit, etc. I have decent, not fantastic credit, but I had a lot of problems in the distant past. I worked long and hard to resolve them, but 1 company did decline for for a tax lien from 1993!!! yes you read that correctly, 1993. It was paid off ages ago and I hadnt even thought about it in years. We are trying to resubmit, and it looks pretty positive, but it does go to show these things can be and are looked at.

[arnguy]

I believe that if it indicates that the tax lien was satisfied you should have no problem at all. Just be certain that the current credit report does indicate that situation.