Researching becoming Independent Life and Health Agent

harveyj5 · 12-03-2008, 02:31 PM

I have begun researching on becoming an independent agent. I have my Life/health and Annuity license and would like to get advice on what to look for in companies and what to consider. I am located in ohio. Any help would be nice.

insuranceexec · 12-03-2008, 02:47 PM

Originally Posted by harveyj5

I have begun researching on becoming an independent agent. I have my Life/health and Annuity license and would like to get advice on what to look for in companies and what to consider. I am located in ohio. Any help would be nice.

What kind of help are you looking for? I currently own an IMO, here in Arkansas and specialize in helping new agents like yourself get started all across the country. The best advice that I could give you is that you want to make sure that you stay with A rated carriers or better, and make sure that the comp is where you want it. Alot of companies do not advance on premium that has yet to be earned, so again make sure that the company you are wanting to do business with will pay you accordingly. If you would like some more information or If I may be of any further assistance just let me know.

healthagent · 12-03-2008, 02:56 PM

Actually, only if you need advances, they're available through almost every carrier

insuranceexec · 12-03-2008, 04:01 PM

Originally Posted by healthagent

Actually, only if you need advances, they're available through almost every carrier

Almost every company does not offer advances on the life side. Maybe they do on the health side and I apologize for not knowing that answer. The problem however in alot of cases you take a reduced commission for taking an advancement. Again and to be clear I am talking about the Life side only, sorry for any confusion.

Markingriffin · 12-03-2008, 07:48 PM

Originally Posted by insuranceexec

Almost every company does not offer advances on the life side. Maybe they do on the health side and I apologize for not knowing that answer. The problem however in alot of cases you take a reduced commission for taking an advancement. Again and to be clear I am talking about the Life side only, sorry for any confusion.

LOL. You are 100% wrong. Most of all the insurance companies and IMO offer advancing if you don't have a vector or really bad credit. 90% of the agents that try to get advancing get it. If you owe another insurance company money, then you might not get it.

Also, I don't know which IMO you work with. But if they reduce your commissions to give you advances, I would find another IMO to work with.

healthagent · 12-03-2008, 07:51 PM

You can get advances for almost any life carrier.

insuranceexec · 12-03-2008, 08:12 PM

Originally Posted by Markingriffin

LOL. You are 100% wrong. Most of all the insurance companies and IMO offer advancing if you don't have a vector or really bad credit. 90% of the agents that try to get advancing get it. If you owe another insurance company money, then you might not get it.

Also, I don't know which IMO you work with. But if they reduce your commissions to give you advances, I would find another IMO to work with.

As far as the IMO is concerned I own it. Each company decides whether or not they are going to advance commissions. If an agent chooses to take an advancement on commissions then WILL NOT get as high of a comp from that company.

Sure if you are OK staying at street level or slightly above than take all of the advances you want. But I am telling you that you will limit your future earnings with most companies for taking advancements.

For Example West Coast Life and Protective are sister companies. Both of these companies have the same underwriting guidelines and the same ratings. However, the comp is very different, West Coast will not ADVANCE commissions and has a street comp of 110%. Protective will advance 75% of target, but thier street comp is only 75%. Therefore you are taking a REDUCED commission for receiving an advancement on unearned premium.

What I have found to be true is that more agents, especially when getting started, will choose to take the company that offers an advancement. And in the long run they cost themselves alot of commissions. I as president of my IMO will not offer much higher than street to my agents that are receiving advances. The reason I will not is that I have to sign off on any agent in my IMO as being financially responsible for any debit balance not satisfied by the producer. I hope this helps clear things up.....

healthagent · 12-03-2008, 08:29 PM

I have not found that to be the case in my dealings. I can take an advance or go as-earned - same comp

Markingriffin · 12-03-2008, 08:35 PM

Originally Posted by insuranceexec

As far as the IMO is concerned I own it. Each company decides whether or not they are going to advance commissions. If an agent chooses to take an advancement on commissions then WILL NOT get as high of a comp from that company.

Sure if you are OK staying at street level or slightly above than take all of the advances you want. But I am telling you that you will limit your future earnings with most companies for taking advancements.

For Example West Coast Life and Protective are sister companies. Both of these companies have the same underwriting guidelines and the same ratings. However, the comp is very different, West Coast will not ADVANCE commissions and has a street comp of 110%. Protective will advance 75% of target, but thier street comp is only 75%. Therefore you are taking a REDUCED commission for receiving an advancement on unearned premium.

What I have found to be true is that more agents, especially when getting started, will choose to take the company that offers an advancement. And in the long run they cost themselves alot of commissions. I as president of my IMO will not offer much higher than street to my agents that are receiving advances. The reason I will not is that I have to sign off on any agent in my IMO as being financially responsible for any debit balance not satisfied by the producer. I hope this helps clear things up.....

I also am an IMO as many of you know. If you take advancing or not, you will still get the same commission levels with me. I do not know of an imo besides yourself, that does what you do. I too am responsible for the debit balances, but I've been doing this for a while and know how to protect myself. But if that is how you do it, and it works for you, then keep doing it. If the agents do not mind you doing this, then keep doing it. I didn't know the agents would allow an IMO to cut commissions if they place them on advancing. You must find a different kind of agent then I do.

My other question is do you offer an up front release letter to your agents? A lot of agents will want to know this. Since you are advertising yourself.

What did you mean when you said that most of all the life companies do not offer advancing? Why did you say that?

insuranceexec · 12-03-2008, 09:16 PM

Originally Posted by Markingriffin

I also am an IMO as many of you know. If you take advancing or not, you will still get the same commission levels with me. I do not know of an imo besides yourself, that does what you do. I too am responsible for the debit balances, but I've been doing this for a while and know how to protect myself. But if that is how you do it, and it works for you, then keep doing it. If the agents do not mind you doing this, then keep doing it. I didn't know the agents would allow an IMO to cut commissions if they place them on advancing. You must find a different kind of agent then I do.

My other question is do you offer an up front release letter to your agents? A lot of agents will want to know this. Since you are advertising yourself.

What did you mean when you said that most of all the life companies do not offer advancing? Why did you say that?

If an agent contracts with me they do so because I am paying them more than any other IMO. For example If the street comp for ABC company is 100% and my override is 45% the total comp would be 145%. If I start my agents at 120% it is at my discretion whether or not to give them more. If they do not like what I am paying than they are free to move their contract. The way I operate for the most part is that I pay everything to the agent and I operate on 5%. So with the example given the agent would get 140% to start off with.

If an agent starts and they tell me that they are wanting advances then I will not start them off at the 140% level I would start them off at around the 120% level. Again like I am sure that you know it is at your discretion how much commission you offer to your agents. I personally do not know of any Life company that will give advances to any NEW agents without going through a marketing firm. That is what I meant. When the individual said that he was thinking about going independant and talking with the different companies, I assumed he meant that he would be contacting the companies directly. If he in fact contacted the companies directly without a proven track record he probrably would not even get a conversation with the company. In the rare instance that he did get a conversation they, being the company that he is talking to, would not offer him advances on a direct contract until he has a 12 month track record with that company.

To clarify I am not saying that every company operates this way, but I am comfortable in saying that 95% of the companies do. I can only speak from my own experience, but this is the way I was dealt with. I do not have bad credit, quite the opposite actually, and I do not have any vector hits on my report. So to say that unless you have either one of these would be the only way not to get advanced commission is not entirely true. I mean if we are going to hang on every word and pick it apart.

The information I was trying to give was in my opinion good information. Most marketing companies get upset with me when I tell the truth and I am use to that. In Conclusion I would add that a marketing company is of NO use to an agent unless:

1. The Marketing company is providing you contacts or leads.

2. Is providing you an office and support.

3. Is paying such a HIGH commission that you do not care about 1 and 2.

I do any of the following for my agents, but I will not and can not do all three. Unless your a Democrat and expect OBAMA to magically appear and make all of your problems go away........LOL. I thought I would throw some humor in there......

I can see where what I said could have been misconstrued and for that I apologize. I was trying to get past the FAT and provide the facts. But again to be clear the facts that I speak of ARE FROM MY EXPERIENCE, AND MY EXPERIENCE ALONE.
- - - - - - - - - - - - - - - - - -

Originally Posted by healthagent

I have not found that to be the case in my dealings. I can take an advance or go as-earned - same comp

Yes you will get the same comp, but the chances of having your comp increased by your marketing firm will go down. That is what I am saying. I was trying to give a point-of-view from an IMO standpoint. An IMO can say that it will not affect their future comps to their agents, and all I am saying is that is not TRUE. That is the wonderful thing about an opinion you can take it or leave it. I am sorry for posting.

Markingriffin · 12-03-2008, 10:24 PM

Which company do you offer a 140% contract with street level?

insuranceexec · 12-04-2008, 09:23 AM

Originally Posted by Markingriffin

Which company do you offer a 140% contract with street level?

West Coast Life, is one

healthagent · 12-04-2008, 09:26 AM

To a point I agree with what you're doing....to a point. However, the highest level producers always deserve the highest comp.

I'm not sure if I think people who barely produce deserve above street level - there's a sense of fairness that seems to be violated if I'm busting my ass and getting 130% and some lazy schmuck doing 10 apps a year is at the same comp.

Markingriffin · 12-04-2008, 09:36 AM

Believe it or not. The companies just don't allow the imo's to offer the agent everything. At a certain point, we must show the company your production levels and other stuff.

I don't believe the company is going to allow a contract to come in from a new agent at 140% with no production showing where he is doing millions a year. Also if a company saw an imo, offering above the MGA level, they would fire the imo.

I don't think he can really give a 140% with West Coast life to just anyone. I know the guys at West Coast Life. I will give them a phone call and see what they have to say about this.

I think he is just blowing smoke. We know nothing about the guy. Show us his website, or his info.

Okay, send one of us the 140% with West Coast Life.

healthagent · 12-04-2008, 09:42 AM

True, on the health side many carriers do not allow you to offer anything above street or even compensate anything above street.

insuranceexec · 12-04-2008, 11:21 AM

Originally Posted by healthagent

True, on the health side many carriers do not allow you to offer anything above street or even compensate anything above street.

I am sorry you feel that way. But an IMO can pay anything they want to an agent in the form of a bonus. But I thank you MarkinGriffin for again proving my point. Most IMO's do not like the way I operate because I can take alot business out the door. West Coast does not care becasue they are still getting the business. I am not here trying to take any ones business, again I am trying to offer another point-of-view.

Most people feel threatened when there way of thinking is in jeopardy. I say do not feel threatened instead change the way you think. Just another thought from my dumb book of thinking, but at least I do think.
- - - - - - - - - - - - - - - - - -

Originally Posted by Markingriffin

Believe it or not. The companies just don't allow the imo's to offer the agent everything. At a certain point, we must show the company your production levels and other stuff.

I don't believe the company is going to allow a contract to come in from a new agent at 140% with no production showing where he is doing millions a year. Also if a company saw an imo, offering above the MGA level, they would fire the imo.

I don't think he can really give a 140% with West Coast life to just anyone. I know the guys at West Coast Life. I will give them a phone call and see what they have to say about this.

I think he is just blowing smoke. We know nothing about the guy. Show us his website, or his info.

Okay, send one of us the 140% with West Coast Life.

I will answer each response:

The company will not allow for that contract to go to a new agent. That is true, the additional comp is paid in the form of a bonus on each contract issued.

If you are so intrested in trying to defame me in public, why then were you sending me private messages last night telling me that you thought my information was well received.

And lastly where would you like your contracting paperwork sent too?

I do remember this summer when Banner was having a promotion on there term products and my comp was a total of 158% but again I was only at 141% with Banner. How could this be, Oh thats right I was paid the additional in the form of a bonus from CIGI.

Put your big boy pants on, get your information right and then come back to the table, beacause I am here to tell it like it is.

GreenSky · 12-04-2008, 11:32 AM

Originally Posted by insuranceexec

Put your big boy pants on, get your information right and then come back to the table, beacause I am here to tell it like it is.

I think the bottom line is that anyone can post anything here anonymously. It take "big boy pants" to let people know who you are.

Until you are willing to come out from behind the closet door (so to speak), you have zero credibility.

Rick

insuranceexec · 12-04-2008, 11:44 AM

Originally Posted by GreenSky

I think the bottom line is that anyone can post anything here anonymously. It take "big boy pants" to let people know who you are.

Until you are willing to come out from behind the closet door (so to speak), you have zero credibility.

Rick

I apologize I thought I had already given that, but it could have been another post. My marketing company is called Momentum Advisors Insurance Group. My name is William Gay. Hope

Markingriffin · 12-08-2008, 06:16 PM

[quote=insuranceexec;117955]

The company will not allow for that contract to go to a new agent. That is true, the additional comp is paid in the form of a bonus on each contract issued.

If you are so intrested in trying to defame me in public, why then were you sending me private messages last night telling me that you thought my information was well received.

[quote]

I want to see this PM where I said to you that your info was well recieved or that I bragged about you. When talking about defaming you. I did say something to you about your spelling. I was not trying to attack you, but to make you aware that you will be judge on spelling on this forum and to use the spell checker.

THe only PM I ever sent to you said this.

"I'm not trying to attack you. If you don't spam on here from the start you will get further on here.

You have to learn how this forum works. Give advise and help agents before you promote yourself.

I'm trying to save you some time. I bet it won't be long before the forum mods go back and change your post or delete them or ban you for spamming.

If you will listen to my advise, you will go further."

What part of what I said, makes you think I think your info is well recieved. I wrote this after you 1st 4 post were spam and you not reading the rules of the forum. I sent it in a pm, not to make you look bad or to attack you.

SO the small print is that you really don't give the 140% contract to new agents like you said, and that you really pay this bonus out of your pocket. What % does the company pay and what % comes out of your pocket.

I'm not going to defame you. I think anyone can just judge you on your post and your knowledge. I also wish you the best in your 2nd year of law school. If I was in law school, I would not be in the insurance business.

I would like to see your website. Also, do you offer a toll free phone number for the agents on the forum to call you? Do you have more contact info?

I am also worried anytime that an mga/agent/imo pays another agent from their pocket. I'm very confused about this 140% contract with West Coast. How much of it comes from your pocket and how much comes from West Coast?

If anying you questions is defaming you, then I'm sorry that you took it that way. IF you are talking about the spelling thing. I'm sorry. I only wanted you to be judged by your post and your knowledge.

blackhammockcat · 12-08-2008, 07:40 PM

So how does one form or become an IMO? I have worked as a recruiter in a captive environment and am trying to learn how to put myself in a position to develop a team of life producers. I would appreciate any advice from IMO folks or other experienced agents.

This has been educational for me - just to learn of the contract possibilities beyond that available to the personal producer. Thanks for the healthy exchange and straight talk!