Becoming an Independent Insurance Agent

[wsands]

Re: Becoming a health insurance agent

Hi all,
I'm not making the connection between insurance agent and broker. What is the difference? What is the role of a broker? From what i gather (and this could be wrong) but if your an independent agent doesn't that make you a broker?

thanks

 

[Reuben]

Re: Becoming a health insurance agent

While we're on the topic of LLC etc.

I live in Southern California. I've got a name that I'd like to trade under, Dunn Insurance somehow doesn't do it for me.

I was considering the LLC route, or the DBA route.

Not to pick nits here, but does the DBA / LLC really matter?

Thanks again for the advice, this is by far one of the most fruitful threads here.

 

[GreenSky]

Re: Becoming a health insurance agent

While we're on the topic of LLC etc.

I live in Southern California. I've got a name that I'd like to trade under, Dunn Insurance somehow doesn't do it for me.

I was considering the LLC route, or the DBA route.

Not to pick nits here, but does the DBA / LLC really matter?

Thanks again for the advice, this is by far one of the most fruitful threads here.

Since you're in the neighborhood, perhaps you'd like to join us on Monday. There will be about 12-15 of us discussing various issues:

We will be meeting at Roman's Restaurant at 11am on Aug. 18. Good food at very reasonable prices. Sandwiches, wraps, etc. 15100 Ventura Blvd Sherman Oaks, CA 91403 (818) 205-1010

Easy access from the 101 or the 405.

Meeting should last about 2 hours. I'd like to compare/contrast the various health plans available in So Cal. If you have specific questions about Anthem Blue Cross, my RSM has agreed to join us along with a group health expert.

Rick

 

[arnguy]

Re: Becoming a health insurance agent

Are you picking up the tab, Rick? I hope that you have invited Al a/k/a Jackass!

 

[GreenSky]

Re: Becoming a health insurance agent

Are you picking up the tab, Rick? I hope that you have invited A a/k/a Jackass!

For you, yes. I have goosebumps just from the thought of Al joining us.

Rick

 

[SportsNut]

Re: Becoming a health insurance agent

While we're on the topic of LLC etc.

I live in Southern California. I've got a name that I'd like to trade under, Dunn Insurance somehow doesn't do it for me.

I was considering the LLC route, or the DBA route.

Not to pick nits here, but does the DBA / LLC really matter?

Thanks again for the advice, this is by far one of the most fruitful threads here.

Picking Nits... "Does the DBA / LLC really matter?"

Yes, they matter immensely. A DBA is simply a trade name in which you are operating as a sole proprietor but calling yourself by another name. e.g. Rueben Dunn, dba Wacky Ins Products. On your sign, letterhead, bus cards, etc. you can hold yourself out as "Wacky Ins Products". However in reality you are operating as Rueben Dunn, sole proprietor.

The difference comes in if and when something happens that may create a liability issue. In a sole proprietor every asset that you have is exposed to any business dealing that might go sour. e.g. Suit filed against "Wacky Ins Products" will surely be filed against Rueben Dunn personally, since there is NO legal disctinction between you personally and WIP; they are on in the same.

Now, if you were to form an entity known as an LLC, Limited Liability Company, named "Wacky Ins Products, LLC", then this is NOT also Rueben Dunn personally. If WIP, LLC were to be sued, this provides some distance between you personally and the companies dealings. Your assets are NOT personally at risk. This is not to say that if a suit were to be filed that they wouldn't also name you personally, but the first move in such a case by your legal counsel would be to dismiss you personally since it was an action of the entity known as "WIP, LLC", and not your pseronally.

There can be other benefits as well, depending upon how you choose to have the LLC taxed. You can elect to be taxed as an S-Corp, which offers pass thru of income and can save considerable dollars on self employment taxes to the member of the LLC. You should consult with your tax advisor for specifics on these elections and tax treatment.

But yes, suffice it to say, there is a huge difference between a DBA and an LLC or other entity.

 

[Reuben]

Re: Becoming a health insurance agent

...Telemarketers. You can contract through a telemarketing service or simply place free ads on craigslist classifieds: jobs, housing, personals, for sale, services, community, events, forums to hire home-based telemarketers. You can pay them between $10 to $15 an hour and they'll call small business owners, generate 2 leads per hour and expect to close 1 out of 15.

Let's take a look at the telemarketing route. Are there any threads here for scripting, e.g., what kind of script I should prepare for them to use when looking for L/H appointments?

 

[Reuben]

Re: Becoming a health insurance agent

Picking Nits... "Does the DBA / LLC really matter?"
The difference comes in if and when something happens that may create a liability issue. In a sole proprietor every asset that you have is exposed to any business dealing that might go sour. e.g. Suit filed against "Wacky Ins Products" will surely be filed against Rueben Dunn personally, since there is NO legal disctinction between you personally and WIP; they are on in the same.

Now, if you were to form an entity known as an LLC, Limited Liability Company, named "Wacky Ins Products, LLC", then this is NOT also Rueben Dunn personally. If WIP, LLC were to be sued, this provides some distance between you personally and the companies dealings. Your assets are NOT personally at risk. This is not to say that if a suit were to be filed that they wouldn't also name you personally, but the first move in such a case by your legal counsel would be to dismiss you personally since it was an action of the entity known as "WIP, LLC", and not your pseronally..

I would have thought that a decent level of E&O coverage, say for 1-2 million should prevent the libality risks you mentioned, or is that cover limited in scope to the products/advice that I would offer.

 

[GPaq17]

Re: Becoming a health insurance agent

Important note: In most cases once you contract through a general agent or broker it's binding for at least 6 months. That means if you come to find you have a bad deal you might not be able to get out of it quickly. Do your homework.

quote]


Might be a dumb question, but.... If a Life company I am trying to get appointed with is requiring me to go through a GA, do I have any other ties with that GA besides that one company that directed me to them? I ask because the GA that sent me the paperwork told me, "Mutual of Omaha is great and we have a lot of other companies too". Got me thinking that maybe this is a bigger commitment than I thought it actually was. For instance, if I sign with him and I write a health plan or medicare supplement, will he be involved in that as well or only the Mutual of Omaha life plan I contacted him about originally?

Thank you for this post. It is really good and I really appreciate the time you and others on this board put into helping out us lost newbies.

Sincerely,
GPaq

 

[GPaq17]

Re: Becoming a health insurance agent

Since you're in the neighborhood, perhaps you'd like to join us on Monday. There will be about 12-15 of us discussing various issues:

We will be meeting at Roman's Restaurant at 11am on Aug. 18. Good food at very reasonable prices. Sandwiches, wraps, etc. 15100 Ventura Blvd Sherman Oaks, CA 91403 (818) 205-1010

Easy access from the 101 or the 405.

Meeting should last about 2 hours. I'd like to compare/contrast the various health plans available in So Cal. If you have specific questions about Anthem Blue Cross, my RSM has agreed to join us along with a group health expert.

Rick

Hey Rick,

I live in Huntington Beach and if this offer is ever available, I would be more than happy to drive to listen in on some pro's talk shop. Looks like I missed this round, but please keep me in mind if you set this up again.

take care,
George