I have used the search function and I have read many threads about a past bankruptcy. What about a bankruptcy while appointed with several carriers?
At the moment my wife and I will be able to just barely pay November's bills. In December we will start to go delinquent. I have an appointment with a lawyer this coming week to discuss our options.
We were both in the same industry and were paid commission only. Both of our incomes have been on a steady decline for the past 4 years or so. Our incomes have gone from very good to very poor. Our income for 2008 will be under $25,000 due to the company we worked for finding any and all reasons for charging back past commissions.
I got out about 3 months ago when I passed the state insurance exam. I am now appointed with 6 health carriers and am very encouraged and excited about the future. I wrote 6 policies in October and have submitted 4 so far this month.
My wife wants to get her license. So, I have two questions:
1. Will the insurance carriers run periodic credit checks and discover the bankruptcy? If they do what if anything will they do?
2. If my wife does get her license I would guess there is a way to put her business under my numbers. Or not?
I would welcome any and all advice and suggestions.
Carriers generally ask if there are any outstanding balances, litigation or pending litigation. Additionally, many do a background & credit check.
Going forward, I am not aware of carriers rechecking to see if your situation has changed. The exception would be if you owe them money and they are considering legal action to recoup.
My question to you is, are you sure you want to do this with a BK (or similar action) hanging over your head? Seems like a lot of additional stress, but maybe that is just me.
Be very careful taking advances in the health insurance industry. I don't know what industry you used to be in, but chargebacks in health insurance can be just as bad. Or it can be very good, it depends on how you do it and what you make of it. Just tread lightly -here. Sounds like you do not need to dig any more holes.
I would think long and hard before you decide to pull the trigger on going BK. I don't know of any carriers that look back at you unless there are other problems,debt etc/ I suggest you take some advances and some paid as earned, I have about half and half and trust me it nice having that paid as earned is increasing every month. If you can do this business, especially health, your opportunity, IMO is better than most any other industry.
Be very careful taking advances in the health insurance industry. I don't know what industry you used to be in, but chargebacks in health insurance can be just as bad. Or it can be very good, it depends on how you do it and what you make of it.
Good advice.
If you "sell it correctly"; qualify them thoroughly and not try to ram anything down their throats - you'll be OK.
If you don't, you won't.
------------------------------------ ILH&AAA President, and 2006-2009 "Broker of the Year"
I would be sure to go ahead and get my wife licensed and appointed with the same companies as you are. I think that will give you greater flexibility in dealing with clients. I don't think the BK if you go that route will have much impact on your insurance business. What line of work were you in before and why did you go one year almost earning nothing? Sounds like you should have jumped ship sooner?
How many people do you try to see each day? If you are writing Health or Medicare Supplements you need to increase your sales numbers. You have to get a mindset that you will not fail and will do whatever time it takes to make it work. I know how hard that can be, twenty two years ago I started with one client and now have an Agency with eight agents working with me. It can be done but will take long hours of hard work. BUT IT WILL BE WORTH IT.
Dave
"1. Will the insurance carriers run periodic credit checks and discover the bankruptcy? If they do what if anything will they do?"
Depends on the carrier. Also I don't think Bankruptcy is as easy as before. Can the people you owe seek payment from your new commissions? You might find advances hard to come by. You might end up as earned. Which in all honesty is a better way to go. Chargebacks are a bitch.
"2. If my wife does get her license I would guess there is a way to put her business under my numbers. Or not?"
I'm not sure, you will probably have to ask the carriers.
"I would welcome any and all advice and suggestions."
Be upfront about things. Hiding can just make things worse.
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I need some sage advice !
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