Are Partnerships the Way to Go?

Jan 4, 2016

  1. dbtechy
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    dbtechy New Member

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    Is it common for captive agents to partner with an independent agent? My spouse is a captive agent and we are losing a lot of prospects and customers lately with price increases. I'm sure the structure for this would be all over the board but does anyone have examples of this working?
     
    dbtechy, Jan 4, 2016
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  2. Cash
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    Cash Guru

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    Sounds like a good way for your wife to lose her job.
     
    Cash, Jan 4, 2016
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  3. AZDave
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    AZDave Guru

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    Partner by referring business to - done all the time. Partner by contract - don't do it. Read her contract. Most captive contracts have agreements that bar her from entering any other insurance business, or obtaining contracts with other carriers.

    So you can start an Indy agency by yourself and she can refer you business. Just don't announce it at her district meeting.

    Good Luck.

    Dave
     
    AZDave, Jan 4, 2016
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  4. agentinsouth
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    agentinsouth Guru

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    If you don't want her to loose her job , you should get licensed.
     
  5. dbtechy
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    dbtechy New Member

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    If I did get my license can I write under an independent agency at nights or on weekends (I have a regular day job)? At least with prospects that don't even qualify under captive. Get some sort of commissions split and build the book up and then maybe breakaway with the ones I've written down the road? I would think someone has possibly tried this since it's a benefit to both parties.
     
    dbtechy, Jan 8, 2016
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  6. P&CGuru
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    P&CGuru Super Genius

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    Captives cannot stop you from owning stock in an IA as long as you dont have an active role in the IA. So as long as the IA is incorporated than you shouldn't have an issue but you want to be wise on how you are switching customers to the IA because there are rules on how you can and cannot refer. Just be smart, read the agreements and work around them by abiding to the agreement. Like someone else suggested, a lawyer would be a a good tool.
     
    P&CGuru, Jan 11, 2016
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