At What Point Do You Get Incorporated.....

LifeIn403b

Expert
39
If you have sub agents in other states, do you have to be incorporated in each of those states you hold licenses and do business in? This may have been asked before but I couldn't find it anywhere on the forum....
 
The unknowing asking here, but why would you have to be incorporated in each state?????

Why would that have anything to do with getting overrides?

Also, doesn't E&O cover you for wherever you write business? I know my policy covers the 3 states I'm licensed in, but I only asked about those. Not sure what happens if I suddenly decide to license myself in 10 more states....

Dan
 
You only need to incorporated in your state. GE isn't incorporated in every state. Now, they may be registered, but that is different.

Also, whether or not you need to be licensed is state and company specific. Very few states require you to be licensed to receive overrides. A company may require it, but few states do.
 
One thing I have been meaning to ask my accountant about is this.

From the way I understand it, when I do incorporate, I can deposit my checks into the corporate account even if I'm not set up as a corporation. So if I get a check with my name on it, I just deposit into corporate account.

Any thoughts on this? The reason why I ask is because like so many other things in our world (realm of insurance career) things can be different from other occupations. :cool:
 
If you are incorporated, you only need to do that in one state. However, there are 13 "non-PLMA" states that will require that you are licensed in order to receive overrides. If your sub-agents are contracted under your corp license with the carriers, then you will need to get a business entity license in those states. Some carriers will allow you to get a number in your personal name also and will put your sub-agents under that number in the non-PLMA states. That way you only have to get an individual license in those states.
 
Have the carriers assign comp to your corp. Might require getting the corp an insurance license. Don't think florida doi will do that, so call one of your carriers.

One thing I have been meaning to ask my accountant about is this.

From the way I understand it, when I do incorporate, I can deposit my checks into the corporate account even if I'm not set up as a corporation. So if I get a check with my name on it, I just deposit into corporate account.

Any thoughts on this? The reason why I ask is because like so many other things in our world (realm of insurance career) things can be different from other occupations. :cool:
 

Latest posts

Back
Top