Book of Business Buy

[JCK818]

I have a rookie question ( SO NO SMART REMARKS)

Let's say I find a small brokerage that is willing to sell me their book of business and we come to an agreement (1 yr as earned comm). After the agreement, what exactly needs to take place. DO I just start doing BOR's? What if I don't have that particular carrier?
When I buy their book or business, do their carriers automatically become mine?
I just know i'm going to get crap for this question!

 

[Insurance-Guy]

If you buy the book of business you would take over their contracts with the carriers. Of course you would need to notify the carriers to make sure there is no problem to appoint you.

What I did when I purchased my agency was notify the TSM of my large carriers and tell them that I was purchasing the agency and asked if there was anything I needed to do. Some there was some there wasn't anymore than them putting my name down. Now my agency name remained the same and is owned by a corporation (that i own) so not sure if it will be different for you or not.

 

[JCK818]

Thank you Insurance Guy

 

[Bertolinoins]

Talk to the reps, they can usually have the renewals roll into your agency code.

 

[JCK818]

Talk to the reps, they can usually have the renewals roll into your agency code.

What if I don't have those carriers?

 

[gambrinus]

A condition of the sale should be your appointment with the needed carriers. The reps will be able to help you with this. The selling agent is getting your $$ you should be getting a bit of help from them..

 

[JCK818]

A condition of the sale should be your appointment with the needed carriers. The reps will be able to help you with this. The selling agent is getting your $$ you should be getting a bit of help from them..

Great. In another words, if that is part of the agreement, the carrier will be ok with it.

 

[Bertolinoins]

Great. In another words, if that is part of the agreement, the carrier will be ok with it.

The carrier will still want to talk with you to make sure they want to do business with you. It will also depend how they felt about working with the prior agent, his loss ratio's, etc. You can learn a lot in this process. If he wrote good business then they will be very easy to work with, if they didn't like him then they can be pretty difficult.

 

[Gulliver]

You must make certain that the carriers will take you as a new owner. You never know for sure if they are considering potential action against the agency for loss ratio problems or lack of production. The current trend for many larger carriers is to raise the production requirements for agencies. Sometimes they are quite large and many agents are struggling to keep companies happy. So do your homework and ask lots of questions. The company relationships are the real value.

With all of that said the odds are very good that you will be accepted by the carriers.

Gulliver

 

[FLInsa]

You must make certain that the carriers will take you as a new owner. You never know for sure if they are considering potential action against the agency for loss ratio problems or lack of production. The current trend for many larger carriers is to raise the production requirements for agencies. Sometimes they are quite large and many agents are struggling to keep companies happy. So do your homework and ask lots of questions. The company relationships are the real value.

With all of that said the odds are very good that you will be accepted by the carriers.

Gulliver

+10000000. Before signing on the dotted line, get in touch with the carriers and ask if upon purchasing the said BOB they will appoint you.