A question about captive contracts

[The New Guy]

What about these companies that are looking for agents in my area? Looking for some input about them.

http://hotjobs.yahoo.com/jobseeker/...AuPi4t4C88Syz1ye3oQ1nNH6Q6IX?job_id=J858734OK

http://hotjobs.yahoo.com/jobseeker/...AnCZGsMRfFnKTqTJWiuWm.X6Q6IX?job_id=J733448AA


http://hotjobs.yahoo.com/jobseeker/...AqY2Isxio5z4beKxHSBdzsX6Q6IX?job_id=J729245CE


http://hotjobs.yahoo.com/jobseeker/...AvSul_fMAr5O8VX_IYH05kL6Q6IX?job_id=J339681FZ

Just looking to get 3 to 6 months of experience. Then decide which direction to pursue. In the mean time, I will get my E & O Insurance, get appointed with a few of the companies suggested from this forum, Thanks to everybody for your contributions, and all for your experience, then look forward to getting started.

 

[Anne]

The New Guy..

I did not look at the company links yet, sorry. BUT keep this in mind.. if you are going to be an "independent" agent. Most carriers.. not all though will not write your E&O until you have about 3 years under your belt. I understand from the company perspective.. as to why they have the mind set.

I worked for a "new agent" for a VERY well known carrier about 4 years + ago. He was wet behind the ears and was doing things that were not right... or legal.. After much consideration (did not take long) I told him if he was going to "ask" me to do something that I "knew" was wrong I was not going to do it for him or for anyone else. I learned early on NOT to... EVER NEVER-- compromise my belief system, my ethics or my morals.

He had the gall one day to tell me he hired me to market for him, he was paying my salary and I was to "do what he said..." If you guys want to hear the details about what he was asking I will bore you with them in the next post. I told him to do it himself. Got off my chair and he proceeded to ....

Within about 3 months maybe sooner, underwriters caught on to what he did and had been doing.. there were so many things... he was eventually fired and I stayed on with the office. I decided later I wanted to move on. I was able to with my DIGNITY in tact!

From a liability stand point these carriers can not risk providing you with E&O and having you try to pull some fast ones.

I am not saying you are like that at all.... dont take it that way.. just simply saying you will have to give your self longer than 3 months. More like 3 years.

There are exceptions:

Some insurance associations will provide E&O to new independents but the rates are HIGHER than others with experience would pay.

You could also "take a salary" and not work on a total commission basis for a while to make sure you like the industry. (salary plus some commissions -- potential to make a decent living but with a lot of work.)

There are carriers out there that will pay a salary. If you want the names.. I can get them for you.. but it might take me a day or so to get you the contact information. Just let me know.

 

[Cenla Agent]

As has been mentioned elsewhere on this board, Bankers Life and Casualty is the proverbial revolving door. I don't know anything about Union Bankers and the other two appear to be brokers that perhaps someone in your area can tell you more about.

 

[senior-advisor-indiana]

What companies pay salaries and what was that wet eared agent doing that was illegal?

 

[Cenla Agent]

What companies pay salaries and what was that wet eared agent doing that was illegal?

Two on the life side that I know that pay a salary are American General (AIG) and Monumental. Monumental assigns you an "agency" i.e. a book of business that you are responsible for. No collecting, but they want you to see the clients once a year.

Humana pays its captives a salary as well as a car and cell phone allowance. Much lower commissions than an independent, but independents aren't provided a laptop (not a lease like many other companies), a 4 in 1 printer, UPS shipping at no charge to the agent, telemarketing leads (not generally) etc. either.

 

[senior-advisor-indiana]

wow. I didnt know that. Can you make much money with these salary positions?

 

[Cenla Agent]

wow. I didnt know that. Can you make much money with these salary positions?

You can make big $$ with Humana Marketpoint depending on what products are offered in your area (i.e. $0 premium HMO or low price PFFS.) In most other areas where the plans aren't as good they still do pretty well. Their employee benefits package is excellent. Humana will pay all costs, including advertising, for putting on seminars and I think their captives generally give at least one per week during the AEP/OEP. Of course the MA opportunity is not what it was in 2006 when the OEP lasted until June 30. They also sell their individual health plans (Humana One) in the states where it is approved and they set their agents up with many of the leading final expense, LTC, Medigap and annuity carriers too but the commissions for most of those probably aren't that great, especially for Medigap and individual health. The MA commissions are much less than for an independent producer too, but this is largely offset by the expenses you don't have to pay and by their lead program.

 

[Anne]

Captive Contracts..

What companies pay salaries and what was that wet eared agent doing that was illegal?

Illegal activities:

Writing home owner policies forgetting to take the picture of the house then leaving.
When underwriters would call and ask for a "picture.." he would drive around and take any old picture of any house.

He was too dumb to realize when you "write a house for a brick ranch" and take a picture of a two-story with vinyl siding.. there is NOT a FIT there!!!


Forging Signatures for Lilfe Policy application forms

Binding Coverage when he was not approved by the company to do so due to example listed below:

Example: He wrote insurance for a barn. Never went to inspect the contents. Underwriters were calling. I set up an appt. for an outside underwriter to go and inspect the barn since he refused to do so. Turned out the "client" had VATS of semen and embyros for artificial bull insemination-- something we would have NEVER written had he gone to check. Client was calling in waiting for his dec page. Which of course was not going to get issued due to the barn contents ---
Underwriters came back said no way. Had to turn around and call the client and advise to get his "old" policy back from the previous carrier.
Turned out that client never canceled his policy.. so my agent bound the coverage and he had insurance still with the old company. DOUBLE policies. A big MESS. Double insurance illegal as you know. Can you imagine if the barn caught fire and burned to the ground? To make matters worse the client never "owned" the barn therefore the policy app should have NEVER been taken by this agent! The clients' parents owned the property, he was paying rent for the barn. Non-owned policy.

He never found out who owned the property... that should have been his first heads up!


Example: We had an issue in the office with one of his clients who was a "late Payor" constant!! We had to remind her every 30-60 days that she let her policy lapse etc.

Long story short.. she was in an accident, killed the clmt's car! She had NO coverage. She tried to come in after 45 days and make all of her payments.. borrowing money from a rich relative. She came in (Again, I have never been a licensed agent.. however, have always been the sales/marketing staff person. I also have a background with claims investigating accidents on the personal lines side. Title was a liability adjuster)
Client calls the agent.. who never looks in the system to see that the insd never paid her bill. She tells him she was in a wreck, with injuries the whole nine yards and tells him that "someone from his office" told her she did not have coverage. She acted like she never received the bills from home office, nor did she ever receive the final notice warnings... many of them! I told her.. explained we would set up the claim but since there was no coverage.. more than likely.. the claim would be denied.

He told her (my good old agent) not to worry that he would handle it and that she would have coverage! SOOO not true!

She came in to make her payment. The computer system would not accept the money.. because the policy in the system would have had to have been backdated 45-50 days!! I explained I could not accept her check because the computer would not let me. He walked in behind me.. thinking he was DON JUAN.. and took her check, in front of me told her I was "new" which I was not and that he would "process it".

She left and he told me to take the money. I told him to. I called home office.. they said by him taking the check.. we would be accepting liability for her accident -- Which I knew.

Home office wanted to know where the money was. I advised he put it into the bank deposit bag. They advised for me not to make the deposit with that CHECK. To mail it back, uncashed.. which I did. By cashing it.. we would have assumed liability for everything!

Then when the claims adjuster called he tried to back pedal again saying I was new. Until they got a hold of me and realized he was the new one and since I had handled claims before I knew what was going on!@


This guy needless to say was a PIECE of WORK. There were others.. but I wont bore everyone toooo much.


As far as companies that pay a salary. One of them is Allstate, Fidelity and the others I will find in my notes --

 

[Frank Stastny]

For me, the most difficult part of selling insurance is that I have to follow the "agent" who preceded me. However, that is what usually helps close the sale.

 

[midwestbroker]

I am still "captive" with Humana. I say "captive" because I have other carriers that I was appointed with prior to working there that they have not asked me to leave. So, I haven't. It is a don't ask don't tell thing.

Depending on the area where you live, you can make a lot with Humana. One thing that I liked about this the Marketpoint side. That is the past where you can contract with other carriers (they mostly use PPMG). Sure, they take a cut of the commission, but they provide other perks.

Like I said, depends where you live. They do provide excellent training. They will also set you up with a home office if you do not live by a market office.