I have seen alot of feedback that independent is the way to go rather than being captive. It only makes sense, however, I have zero understanding of how to become an independent agent. How do you become an independent agent? What companies can or are commonly used/available to underwrite/issue policies for independent agents? For example a real estate broker could use CountryWide to underwrite loans. As a captive agent, for example a WL policy, I simply submit the application/submission packet provided by my company for underwriting and issuance of a policy if approved. I have no idea who I can contact to get applications/submission packets/etc and use to underwrite. Any help in the right direction would be appriciated, I am in the Youngstown Ohio area. 330-883-5287
First of you need to contact/communicate to a FMO/IMO to see what companies you can/may want to write/contract with to offer your clients/prospects in the OH area/market. What market/segment are you going to be dealing/selling in? Will it be senior/finalexpense or Major med/ Life? Or will you be doing P&C/life?
I would disagree about being captive. My agents replace captive business all the time because it doesn't compete with premium. I would suggest you find a local BGA willing to offer training. I believe we have a partner agency in Ohio if you are still looking.
I would disagree about being captive. My agents replace captive business all the time because it doesn't compete with premium. I would suggest you find a local BGA willing to offer training. I believe we have a partner agency in Ohio if you are still looking.
A BGA is a Brokerage General Agency. It is a distribution channel that carriers use to market to independent agents. They typically have large national volume contracts direct with most of the carriers out there. An independent agent can uses them for: case management, impaired risk, advanced planning, illustrations, training, shopping cases, etc... or whatever other service they may offer. Normally you can also get a better payout with a BGA than going direct to the carrier and in some cases you can not get access to a carrier unless you go through a BGA (eg. MetLife whose only distribution channel to independent agents is through a BGA)
It is not difficult to become independent, at least in Medicare Insurance sales. The real problem, and I don't know if it is the same in other divisions or not, is finding enough clients to keep in business.
With captive agency, usually you are fed leads from their marketing program. If you have a limited budget for broadcast marketing, you might do well, as others have advised, to get some experience as a captive first.
After you get an established foothold, then branch out into independent. Just be careful about any captive contracts you sign. Read them well before signing, and make sure you keep a copy, including all the names of the parties involved. This may take some doing, because there is a tendency to leave certain parties undisclosed. Ask them if everyone's name is listed, and if they say yes, then write N/R (or something similar) in every blank line of the contract before you sign, and do this with any independent contracts, also.
Next comes the issue of training. If you are independent, who is going to give you the training you need on the product? If you study on your own, expect a lot of unproductive hours you will not have to devote to sales, (and always remember, you need as many hours in the field as you can muster, to arrive at the sales you need to make a living). There is always a lot more to learning the product than reading the company-provided literature.
If this is a lot more than you expect, then I again suggest you work in a captive agency for a while.
I need advice before i go spend my money. I am looking for a Job and I saw this in the paper. "WANTED: Health & Life agents. Will train and License. Weekly advances and leads. 75 to 150K first year."
So I called and the guy said I need to get Licensed. To do that i need to buy a 100 dollar home stude course and then spend 180 bucks on license fees. Then he says I would be running my own biz. He will give me contracts with Blue cross and blue sheild, Uni care and several other companies. As well as the name of a internet site that will supply me with several leads that cost 7.50 each. He also wants a percentage of everything I make. He then tells me that I will use my computer at home (Fine since i have a home office) to do all my work. I will set up appointments with people and go out and write policies. It sounds like a nice idea to me but is it totally legit? I am just a hard salesman looking for a new way to make money and while I think I could do this I don't know anything about it. Is there a better way to do this? Does everything sound legit? What is an acceptable percentage to give this man? Any input would be GREATLY welcomed.
If you'll be running your own biz, from home, on your home computer, why exactly will you be paying him a percentage? Sounds to me like he's looking to build his book on your back.
The ad sounds almost like this "agency" is going to give you full support, but from the looks of it, they want you to build their book on your dime.
As to how much they want from your commissions, this varies. Some contracts require as much as 50%, and if you are going to spend you own money on the overhead of running your "own business", that would not be very attractive.
Where they might contribute something of value to you is any training they can offer. If they don't offer at least that, I would run, not walk away from these people.
Ed
Originally Posted by elitensupreme
I need advice before i go spend my money. I am looking for a Job and I saw this in the paper. "WANTED: Health & Life agents. Will train and License. Weekly advances and leads. 75 to 150K first year."
So I called and the guy said I need to get Licensed. To do that i need to buy a 100 dollar home stude course and then spend 180 bucks on license fees. Then he says I would be running my own biz. He will give me contracts with Blue cross and blue sheild, Uni care and several other companies. As well as the name of a internet site that will supply me with several leads that cost 7.50 each. He also wants a percentage of everything I make. He then tells me that I will use my computer at home (Fine since i have a home office) to do all my work. I will set up appointments with people and go out and write policies. It sounds like a nice idea to me but is it totally legit? I am just a hard salesman looking for a new way to make money and while I think I could do this I don't know anything about it. Is there a better way to do this? Does everything sound legit? What is an acceptable percentage to give this man? Any input would be GREATLY welcomed.
I am new to this industry, however i got my license in Dec 2007 in texas, how do i get appointments. I am also looking for a company with a good training program in life and health. Any suggestions.
I agree with someone else here that if you have no prior insurance experience it likely is a good idea to work for a captive first. Just avoid Farmers Insurance b/c I've heard you could end up owing them money if you don't hit certain production numbers. Maybe other companies are like that too.
There's tons of people who do not succeed in insurance so working for a captive makes sense for those just entering the field.
Is it possible to be independent in the senior market? I work the Medicare market only. It feels like the carriers are letting the FMO's do what they want...hence captive.
By the way is there a list of FMO's nationwide. I would like to enter into some conversations with them direct as I don't feel the carriers would be willing to hire independently.
How to Become Independent
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