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I am relatively new to the insurance business. I work in an internet environment that sells quality insurance to residents of different states. I was ...
I am relatively new to the insurance business. I work in an internet environment that sells quality insurance to residents of different states. I was told by my boss and trainer that I only needed a license in my resident state because I would work as a sub licensee/producer for the brokerage that he contracted with. I found out the hard way that this is not true. You need to be licensed in the state of the client you are selling insurance to. In addition, I learned that appointments are needed in the majority of states to engage the license. Does this type of thing happen often or am I just gullible?
Yep, you need a non-residence license in the state you are selling to.
Why anybody would ever buy over the phone or internet is beyond me. I am a face to face salesperson, so it baffles me. I had norvax for a while but really only used it for quoting, when it came time for the client to buy- it was a different story.
yep, you need a non-residence license in the state you are selling to.
Why anybody would ever buy over the phone or internet is beyond me. I am a face to face salesperson, so it baffles me. I had norvax for a while but really only used it for quoting, when it came time for the client to buy- it was a different story.
Perhaps because they once had one of those agents in their house who had an attitude of "I'm not leaving until I sell something!"
You want an insurance agent in your house?
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"There ought to be one day - just one - when there is open season on senators." -- Will Rogers
If you look at the number of cars that are now sold on the Internet, it is huge. Most go directly to dealerships and the face-to-face with a salesman is gone.
So, the last time I bought a car for my wife I just went out on the Web and found out where the car she wanted with the accessories I wanted could be found. At end of the day, it was $2,500 cheaper than the best from a local dealer and I did not have to screw with the jerk who tried to sell me a car with $1,200 heated seats "because that's the way we order them".
Now, try to picture whether most of the folks out there might just possibly classify insurance salesmen and car salesmen in about the same "I really would like to discuss things with this person" class. You may see the same trend develop in our business.
I know, I know, it's 2008 and all that... get with the program.... internets and all....
I am ancient but that's cool. I collect vinyl lp's and play them- but I do have software to convert them to CD's. And it takes the crackle and pop out...
If you look at the number of cars that are now sold on the Internet, it is huge. Most go directly to dealerships and the face-to-face with a salesman is gone.
I strongly disagree. The number of people who shop on the internet for cars is huge, but the number who buy is small, at least without some 'in-house' interaction.
Insurance is the same thing, though people are getting more comfortable with buying online, it's not the numbers Geico and Progressive are looking for. In fact, they (and e-surance) offer an agent via phone to answer questions.
My track record is about 75% prefer to come to my office rather than me going to them. Doesn't matter to me, I'll do either, but I don't count on getting in my car very often.
But it's a trend, Dan. Don't get me wrong, it is not a trend I am happy to see.
I think it is up to us to make sure people understand that insurance is complicated and a live person is necessary to get through a lot of land mines. A Web site can do that as well.
Cars are more a commodity. People pretty much understand that a Mustang is going to be the same Mustang at different prices, from different dealers, and even through different salesmen.
If insurance gets to be a commodity, and some companies are pushing the idea hard, then the face-to-face will further erode.
It's not quite like that. Essentially, I receive quote requests from our members who are familiar with other products that we sell. I put a proposal together, email it to them, and give them a call to go over the coverages. I truly care about the people that I sell insurance to- they matter. I see, from time to time, new agents taken advantage of and not trained or guided properly because the company does not want to spend money for proper licensing and appointments etc. I am curious if this kind of thing has happened to others and how they dealt with it.
I am relatively new to the insurance business. I work in an internet environment that sells quality insurance to residents of different states. I was told by my boss and trainer that I only needed a license in my resident state because I would work as a sub licensee/producer for the brokerage that he contracted with. I found out the hard way that this is not true. You need to be licensed in the state of the client you are selling insurance to. In addition, I learned that appointments are needed in the majority of states to engage the license. Does this type of thing happen often or am I just gullible?
I recently changed my state of residence and had to flip my resident state license and non resident license for all states that I had appointments. Additionally, you have to be re-appointed by every carrier because your non resident license pivots on your state of residence. This is the same as what you are doing, only twice as much effort, because many of the people that populate the licensing offices of the carriers, know less about licensing than the average experienced independent agent.
To answer your question, the misinformation about licensing happens frequently. The DOI of my resident state of NC told me that they have come across people that changed resident states and didn't know that their carrier appts. had been dropped, until they wrote policies on carriers that they were previously licensed with, or their license had non renewed, due to not meeting the new states requirements on CE, updating address changes, etc. Med Supps require a separate license in some states.
If you have someone telling you things like you have a sub broker appt., then you don't have much in the way of advice on licensing. Save yourself a lot of heartache and confusion by speaking to the doi at every state that you plan to be licensed in, and fully understand the requirements of that state. One biggie, is pre appointment vs. non pre appointment states for new business including backdating of appts. Even some pre-appt. states are not "true" pre appt. in that they will back date your appt. paperwork up to 30 days.
PM me anytime regarding these items in NC, SC and Va, if you plan to be licensed in those states.
Last edited by bill3173 : 10-07-2008 at 10:45 AM.
Reason: wrong word
Licensing advice
Re: Licensing advice
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