Bad Credit and Getting Licensed

[msinsurance]

I'm just wondering if anyone has had an issue getting licensed, or has heard of people having trouble getting licensed through their state because of poor credit and other negative information on their consumer credit report?

The pre-licensing class specifically mentioned causes for disciplinary action and mentioned "financial irresponsibility" and I was wondering if they check your credit, court files before granting a license?

I don't have a BK at all, but I had some issues a few years ago that resulted in a couple of charge offs and a couple of judgments that are still not satisfied. Hence, my move to a new career so I can get those paid off. It's not for lack of trying. Some older stuff should have fallen off my report, but I know that judgments last longer, correct?

Anyone know whether your credit is considered for a license? I'm in MN if that makes a difference.

I'd hate to take these classes and work so hard only to find out that they won't even license me.

 

[Crabcake Johnny]

Getting licensed won't be the issue however you may run into problems getting E&O and appointments.

 

[kwimberl]

The issue is not getting licensed. You can licensed in any state. The issue is getting hired captive or appointed. In most cases, getting hired captive will be difficult. Depending on the credit, you can still get appointed with most carriers but advances may not be available to you.

 

[msinsurance]

Well it's a relief to know that I can still be licensed, and as far as advances, I was never interested in that anyway. I didn't want a situation where someone backed out after I was paid anyway.

I'm more than content just working and being paid as the clients pay. I was thinking of going through a, sorry if the terminology is incorrect, a GA (MGA?). Where several appointments are under one umbrella?

Is this still possible? As far as E & O insurance, is it that I would have a larger premium because I am considered "riskier"? Not that I agree with that though. I may have had some personal issues that affected my income and credit but that doesn't mean I'm dishonest or a risk to someone in my opinion. But I know they have to be careful and assume that some people would be.

Or would even getting E & O be impossible? I'm willing to pay a little more to get it if need be.

I'm interested in life and possibly health. Not interested in anything like LTC or variable products at this time.

 

[kwimberl]

If you can afford to go as earned, you will be better off anyway -- you are correct in that assumption.

You will be able to get E&O. You will just want to look for a group or association plan. For example, if you are selling for Foresters, they have a decent plan that is GI for their agents. If you are selling for Assurant, they, too, have a plan that is GI for their agents. Some of the blues have access to such a plan. World Insurance has such a plan. IHIAA (if you are planning to join a health insurance organization) has such a plan. There are more, but those come to mind right away as reasonably priced options.

You can certainly use a GA / MGA / IMO / FMO/ NMO or whatever you want to help you with your contracting. Seeing whereas you are new, I would recommend it. Just make sure that you get upfront written releases before you sign ANY contracts.

Another word of advice: many agents try to start by doing it all. I would recommend getting to know one segment really well and stick with that rather than trying to be everything to everyone.

 

[myinsurebiz]

As long as you aren't a felon AND do not presently owe an insurance carrier money - you CAN get appointed with advances with numerous carriers.

Just have to know which ones . . .

Good luck,

Tom

 

[Crabcake Johnny]

Tom, since the goal of this board is to actually give people information can you state which health carriers will advance an agent with trashed credit?

 

[myinsurebiz]

There are several John.

Matter of fact - I haven't had even one turn down an applicant so long as they weren't criminal or vectored.

I wouldn't post the carriers on the web based on the topic - but they are out there . . .

Tom

Tom, since the goal of this board is to actually give people information can you state which health carriers will advance an agent with trashed credit?

 

[Crabcake Johnny]

So, for example, Golden Rule will authorize advances if an agent has poor credit? News to me.

 

[myinsurebiz]

Since you mentioned the name - yes they will.

I actually got 2 people appointed that not only had a bankruptcy - but one was just starting it . . .

24% with a 9 month advance.

Tom

So, for example, Golden Rule will authorize advances if an agent has poor credit? News to me.

- - - - - - - - - - - - - - - - - -
However - it may also have something to do with who the FMO is as well . . .

Tom