Safeco Producer Loan?
- Thread starter wow314
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- 414
I'm assuming it's a production based draw paid by the carrier. They may want an additional $100-$250k premium a year for you to avoid paying it back.
I know Erie has something similar and you get 3 years to meet the agreed upon production with the additional producer.
I know Erie has something similar and you get 3 years to meet the agreed upon production with the additional producer.
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It's probably changed since I worked there, but as I remember it was very flexible.
It was intended to provide funding for agencies to hire new producers. Terms and the amount of the loan could be negotiated, but portions would be forgiven based on production goals being met. I think the producer also had to attend one of the company's sales training programs, which averaged $3500-$5000 by themselves and also varied in time commitments.
It's been over 2 years though and I am sure a lot has changed.
It was intended to provide funding for agencies to hire new producers. Terms and the amount of the loan could be negotiated, but portions would be forgiven based on production goals being met. I think the producer also had to attend one of the company's sales training programs, which averaged $3500-$5000 by themselves and also varied in time commitments.
It's been over 2 years though and I am sure a lot has changed.
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- #5
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Allstate pays almost 50% new business commission for start ups, Nationwide does the same loan program, Farmers does the same loan program & State Farm is similar. Erie is not some unicorn company like a few will insist on, but they're great for commercial.
Original question - Safeco is a true IA company so why would this even be a question? Yeah many of the unicorn lovers on here will insist erie is IA (and very VERY few have other appointments) but they're a captive/IA hybrid at the end of the day. Why Safeco would even consider this I don't know?
- 414
It makes sense for the carriers because they guarantee production or just take the loan payment from your commission not much to lose.
Erie is not captive though I have Kemper, Hartford, Progressive, Foremost, etc but a lot of the older agents don't have other appointments. That doesn't make sense to me.
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Verbgravy
Expert
This is mostly correct.
It's a great program for the correct producer. It's geared towards new producers and it does involve a week long class that costs approximately $2500. Prior to the class the producer has to pass a sales test. As part of the program, the agency can obtain a loan from Safeco between $5,000-$50,000 at 0% interest that is paid in monthly installments to the agency. For every $15,000 in PREMIUM produced in the participants code, not the agencies code, they forgive $1200 of the loan. The agency, not the producer is ultimately responsible for the loan.
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