Bankruptcy & Contracting

[mattc]

Again I appreciate the replies!!!

After reading them carefully there are obviously 2 different schools of thought. I appreciate the fact that Insurance companies have to protect what they have built and they have created such policies to do so.

I do take exception to the thought that those who file for bankruptcy are deadbeats. The most common reason for filing bankruptcy is a loss of job and medical expenses. Now certainly there are cases where people file to free them from the burden of irresponsible spending.

I have made calls to 5 different companies and spoke with the department responsible for the appointments and contracting. The response has been positive. The biggest thing that i have taken from my conversations is to be upfront and transparent.

I believe that there is a tremendous opportunity in this industry for myself and I will just take everything just one step at a time and not get too ahead of myself.

Thanks again
Matt

 

[WinoBlues]

MattC,
I wouldn't worry about it too much. I get agents contracted that have had bankruptcies and that's almost on a daily basis. Very few are actually turned down. Those who are have something else wrong on their credit report than a bankruptcy. The companies you might have trouble with are not your typical FE or Med Supp companies.
If you can get contracted with Mutual of Omaha, that would be the test as they are a little more credit stringent than other companies of this ilk.

What Todd said.

This is the least of your problems. Getting enough people to put ink on paper is and should be your number one concern.

Even if you were only able to get appointed with two or three companies. You could make a good living. In a few years the BK will be fading in the rear view. Just got to get to it.
Prospecting, Prospecting, Prospecting.
No one you quote is going to ask you for your credit score.

 

[dkizzle]

Hey Mattc I was wondering if you can update this post to let us know how things went with getting appointed with the BK. I'm wondering which carriers had problems with it and which ones didn't. I tried to PM but it wouldn't let me... =( I have less than 20 posts haha

 

[Guest]

I, too, would be interested in knowing which carriers were the easiest on credit issues and which were the most stringent. Any updates on this issue?

 

[Todd King]

Hey Mattc I was wondering if you can update this post to let us know how things went with getting appointed with the BK. I'm wondering which carriers had problems with it and which ones didn't. I tried to PM but it wouldn't let me... =( I have less than 20 posts haha

I, too, would be interested in knowing which carriers were the easiest on credit issues and which were the most stringent. Any updates on this issue?

Dkizzle and RileyDog:

What market are you looking at? If you're looking in the FE or Med Supp marketing, I really wouldn't worry so much about which companies will take you as most of them should. Now if your credit is that bad, they might want to put you on "as earned" for a period of about 6 months until they can determine that you are writing good business.

If the FE and Med Supp companies turn you down because of credit, you would be in an elite class of having some of the worst credit out there!

Either of you can give me a call to discuss it further if you like.

 

[drcarroll]

Wrong answer.

Statistics show people who have financial problems, read bankruptcy, are at greater risk of committing financial crimes or may engage in bad sales practices.

The problem is, that is statistics and doesn't tell us about an individual, just the group. This guy may be as honest as the day is long and have extenuating circumstances. But that is the problem he will face. Not all carriers will appoint him, some simply do not want the risk.

What statistics show that? And, after a bankruptcy, you don't have financial problems...you HAD financial problems.

 

[redkee]

I have contracted people in the past with a recent BK;they told me that even with a perfect driving record,their auto ins went up because of the BK.I have never done P&C so I only know what I hear.Do auto rates always go up after a BK;or do some some companies overlook?

 

[TwiLight]

I have contracted people in the past with a recent BK;they told me that even with a perfect driving record,their auto ins went up because of the BK.I have never done P&C so I only know what I hear.Do auto rates always go up after a BK;or do some some companies overlook?

Auto/Home/Cycle/RV insurance is underwritten with a Credit model developed in 1994 and was pushed by Progressive then.

It's simple, better credit meant lower loss ratios for companies. I was one of the first agents for Progressive back in 1994 using the Credit Model through their National Markets Division in Michigan. My losses went from an agency avg (with Progressive, $1 mill book of business) of 65-70% in 1994 (considered to be quite good by P&C standards) to 20-25% in 2000. All do to credit scoring.

Most other companies followed and by 2004, almost every insurer in every State was Credit scoring policies as a means of rating their personal lines books of business.

However, since 2009 bankruptcies are at record pace and bad credit is no longer with 5-8% of the population and more towards 30-35%. So now most States are moving towards Banning Credit Scoring as a rating feature. It was good once, in the good ole days.

TwiLightFinancial.com
Building a Better Plan for Seniors......

 

[Lrice]

I bet the heads of Enron had great credit scores and look what they did. Then there is Bernard Madoff who had billions to name another of many. I have met many down and outers who are honest and would share the little that they have to help someone, and I know many wealthy who are always looking to see who they can take advantage of. A credit score doesn't always tell a true story of someones character. Just food for thought.

 

[Briefcaseboy]

Is chapter 11 considered bankruptcy ? I know some people consolidate their debts and continue to make payments. Is debt consolidation considered a bankruptcy ?