What health, life, etc. plans can I sell in CA without E&O insurance? I'm signing with Assurant and Pacific Care, is there anyone else.
Thanks
I always worry about someone who wants to sell insurance with E&O. It's our ONLY overhead cost and it's $460 a year in California. If you can't afford $40 per month to be in a career, you should be an employee.
The correct answer is [COLOR=darkolivegreen]YOU CAN'T SELL ANYTHING WITHOUT BEING RESPONSIBLE ENOUGH TO BUY E&O.[/COLOR]
I'm getting off my high horse now. Continue talking amongst yourselves.
Rick
------------------------------------ ILIAA
Training, Community, Support, and Success Independent Life Insurance Agents Assn rick@iliaa.org
You can sell any plan that wil permit you to sell without Errors and Omissions. However I would not sell until you have insurance as the liability is on you and protects you. Woithout insurance u are naked in the face of a complaint or a possible settlement. About the only thing I would reconnend selling with it would be dental discount plans and plans for which you dont need an insurance license like PPO repricing plans but thats it
Assurant is not competitive in California, so you will get killed on price point for their products. Get on with Anthem Blue Cross, Blue Shield, Health Net and Aetna ASAP. Both Blues have E&O coverage for $460 a year for appointed agents and you can make monthly payments.
Did you actually read the contract you signed with UHC (PacifiCare)? It has NO VESTING at all. It is a garbage contract and many agents in CA won't sign it. UHC owns all of your clients. They can take them back at ANY TIME and if you die, retire or quit, they pull all of them and cut you off financially. All other carriers allow you to maintain you own clients and can name beneficiary in the event you pass away. You can also retire, sell your business or rest on your laurels without having to maintain licensing. UHC will grab them the minute your license goes out of force.
Not that I have anything against UHC ([COLOR=silver]blows[/COLOR])...;-)
If you even talk to a client without having an E&O policy, that would be very foolish. If, for example, a client sues you because they were led to believe that you provided coverage for a particular hazard, what happens if you can't prove you told them they would not have it? If you give them a brochure with your name on it that references that coverage but later they tell you they don't want it and you don't get a signed and executed change form stating that when you set them up, they'll be in court with tears in their eyes pointing to you as a snake oil salesman.
You could be ruined financially for life. It's not worth it over $500. If you don't have the money, don't sell insurance or find an agency that will provide it for you.
Now that you've heard from all the "know it all, blow hards", let me tell you that you can sell insurance, with some companies, and not carry E&O. For those that are telling you...
"you should be selling cars"
Or
"it's only $450"
Probably have never been in your shoes, and had to deal with this. It's the same response I get when I tell someone that there are some attendees of my Job Seekers Group that have been out of work for over a year. The response is, "Well, aren't they looking?"
My advice. Call around. See who requires it, and who doesn't. Start selling with those that don't, then pick up those that do.
This Company offers E&O if you contract through them for the lines you want to sell. Their in Georgia, but they work with out of state reps as well.
Now that you've heard from all the "know it all, blow hards", let me tell you that you can sell insurance, with some companies, and not carry E&O.
Maybe in GA, this agent is in California. None of the reputable carriers in CA will allow contracting to sell without E&O coverage. As I pointed out above, Assurant is a joke carrier out here and UHC has their head firmly up their butt in CA. This ain't GA, things are a LITTLE different out here. And yes we have lots more lawyers in CA too, many in LA looking to make a buck where they can.
Originally Posted by Bob_The_Insurance_Guy
For those that are telling you...
"you should be selling cars"
Or
"it's only $450"
Probably have never been in your shoes, and had to deal with this. It's the same response I get when I tell someone that there are some attendees of my Job Seekers Group that have been out of work for over a year. The response is, "Well, aren't they looking?"
You are right, no other agent has ever had to purchase E&O coverage or started out with no commission income coming in calling the carrier to find out how much this month's check will be or anything like that.
Originally Posted by Bob_The_Insurance_Guy
My advice. Call around. See who requires it, and who doesn't. Start selling with those that don't, then pick up those that do.
I'll make it easier since I am in CA and know the market just a bit better than you do:
Blue Cross (Anthem) requires it
Blue Shield CA requires it
Health Net requires it
Aetna requires it
Kaiser requires it on small group since you can't sell their IFP out here
Who else you gonna call? That is all of the other carriers in CA in IFP besides the two already mentioned.
Originally Posted by Bob_The_Insurance_Guy
This Company offers E&O if you contract through them for the lines you want to sell. Their in Georgia, but they work with out of state reps as well.
Not listed on the CA DOI website as authorized to sell in California. Neither is Richard Stolz. So this obviously won't work.
Originally Posted by Bob_The_Insurance_Guy
Good luck.
You'll be fine.
Sure, as long as he doesn't get sued or doesn't want to sell any real health insurance in California.
I sold insurance in the senior market for 5 years with no complaints. Of course this is Indiana and I am ethical. I do however carry E&O now because I have started writing a little major med and most of them require E&O.
No E&O, what can I sell?
What health, life, etc. plans can I sell in CA without E&O insurance? I'm signing with Assurant and Pacific Care, is there anyone else. 
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