Braxtonut
Expert
- 93
Great information! Thanks for these great resources. I can really see using these tools to close leads!
Becoming an Independent Insurance Agent
- Thread starter Crabcake Johnny
- Start date
- 7,066
I am new to this board, the insurance agent world (real green) and have a lot of questions. But first I would like to quickly introduce myself. I am 45 years old woman, former teacher, who is outgoing, assertive/confident, enjoy working with/helping people from all walks of life, and a lifelong learner (always seeking things to learn and improve upon myself). I am very dedicated in whatever I do and make tremendous effort to give 100% in any job or career I engage in. To that end I can be found easily putting in 50+ hrs a week at work.
I have recently received the license for the General Lines Life, Acc & Health in the process of researching companies, reading info on insurance forums and looking into joining associations.
Now that intro is out of the way, I have a few statements & questions:
1st—I know that you've all probably heard this a thousand times so here's #1001 (feel free to roll eyes-lol)—I would love to go independent but with no training, support, guidance or leads—well lets just say it feels and sounds like an uphill battle. Any thoughts?
2nd—What's an IMO/FMO? Is that like a marketing middleman? Are there any advantages for FMOs? Will they offer training on policies?
3rd-—If I go "captive" route I wouldn't want it to be for more than a year or so. Are most contracts for a year or under?
3.1- I would like to focus on selling Life Insurance, LTC and Medicare Supplements, but is Health an easier entry/hire/learning? Also, I'd prefer to sell individual as opposed to B2B (at least at first while i learn the business)
4th--As a captive, an agent is on straight commission, no salary, just like indy only lower commission correct? It's confusing because some on this board talk about salary+commission and others explain that there's no salary involved even as a captive.
5th —I read about this lovely thing y'all have in the insurance industry called "chargebacks"
I prefer to refer to them as "OUCH!" and truly they scare the bejesus out of me.
Especially since I recently read a court case - American General Life Insurance vs Michael Kirsh. Mr. Kirsh (Agent) ended up paying upwards of $650,000 (100% of his commission) back to AGLI after two of his clients converted the policy from whole life to term on the policy's third year.
Which brings me to my question of ouchbacks (charge backs)— Would I basically have to keep most of my commissions collecting dust in the bank-untouched- for the first 3 years of any and all policies I write?
I ask because it's kind of hard to live off Ramen Noodles for 3-4 years not to mention fattening and buying wine would be out of the questions since nowadays they want at least $2.50 for a bottle. <<warning: dry humor
4th- Are there any companies that have a more "liberal" or rather "lax" charge-back policy?
5th – I have about 6-7 months of personal $ since i hear agents make zero in the first several months of being in the business. However, do you think it would be possible for a new agent to make at conservative $800 a month at first if i really bust my b*tt making contact and face to face time with people? Or is this amount ($800/mo) too high for a first year agent?
Caveat: Being a born and bred New Yorker (though now living in Texas) I run when I hear words such as "I guarantee you will make $100K, $200K… we can definitely put you on board the space shuttle in the coming year…"
Basically, if I was interested in getting rich quick I would follow the Call Girl career path providing a niche service to Politicians rather than become an Insurance Agent
Anyway, glad to be here. All advice greatly appreciated.
You do have a lot of good questions. Most are questions that can't be answered by just a short response.
If you would like to give me a call I would be happy to discuss your questions as opposed to simply typing a couple of sentences on here which would probably only raise more questions. Since you are "brand new" I feel talking about them would be a lot more beneficial for you. The best number to reach me on is 573.544.4091.
I am new to this board, the insurance agent world (real green) and have a lot of questions. But first I would like to quickly introduce myself. I am 45 years old woman, former teacher, who is outgoing, assertive/confident, enjoy working with/helping people from all walks of life, and a lifelong learner (always seeking things to learn and improve upon myself). I am very dedicated in whatever I do and make tremendous effort to give 100% in any job or career I engage in. To that end I can be found easily putting in 50+ hrs a week at work.
I have recently received the license for the General Lines Life, Acc & Health in the process of researching companies, reading info on insurance forums and looking into joining associations.
Now that intro is out of the way, I have a few statements & questions:
1st—I know that you've all probably heard this a thousand times so here's #1001 (feel free to roll eyes-lol)—I would love to go independent but with no training, support, guidance or leads—well lets just say it feels and sounds like an uphill battle. Any thoughts?
2nd—What's an IMO/FMO? Is that like a marketing middleman? Are there any advantages for FMOs? Will they offer training on policies?
3rd-—If I go "captive" route I wouldn't want it to be for more than a year or so. Are most contracts for a year or under?
3.1- I would like to focus on selling Life Insurance, LTC and Medicare Supplements, but is Health an easier entry/hire/learning? Also, I'd prefer to sell individual as opposed to B2B (at least at first while i learn the business)
4th--As a captive, an agent is on straight commission, no salary, just like indy only lower commission correct? It's confusing because some on this board talk about salary+commission and others explain that there's no salary involved even as a captive.
5th —I read about this lovely thing y'all have in the insurance industry called "chargebacks"
I prefer to refer to them as "OUCH!" and truly they scare the bejesus out of me.
Especially since I recently read a court case - American General Life Insurance vs Michael Kirsh. Mr. Kirsh (Agent) ended up paying upwards of $650,000 (100% of his commission) back to AGLI after two of his clients converted the policy from whole life to term on the policy's third year.
Which brings me to my question of ouchbacks (charge backs)— Would I basically have to keep most of my commissions collecting dust in the bank-untouched- for the first 3 years of any and all policies I write?
I ask because it's kind of hard to live off Ramen Noodles for 3-4 years not to mention fattening and buying wine would be out of the questions since nowadays they want at least $2.50 for a bottle. <<warning: dry humor
4th- Are there any companies that have a more "liberal" or rather "lax" charge-back policy?
5th – I have about 6-7 months of personal $ since i hear agents make zero in the first several months of being in the business. However, do you think it would be possible for a new agent to make at conservative $800 a month at first if i really bust my b*tt making contact and face to face time with people? Or is this amount ($800/mo) too high for a first year agent?
Caveat: Being a born and bred New Yorker (though now living in Texas) I run when I hear words such as "I guarantee you will make $100K, $200K… we can definitely put you on board the space shuttle in the coming year…"
Basically, if I was interested in getting rich quick I would follow the Call Girl career path providing a niche service to Politicians rather than become an Insurance Agent
Anyway, glad to be here. All advice greatly appreciated.
A phone call to Frank will answer most of your questions. Let me make a prediction. You will do well. You ask good questions, show intelligence, and have some grasp of the challenge.
When you have time please share some of the most common items.
- 7,066
You are more than welcome to call also.
taakinc
New Member
- 3
Frank - I too would like to know many of the same questions asked...very much appreciated!
- 7,066
You know my number, call anytime.
JoeDeRosa
New Member
- 1
There is definitely great insight on this thread! Here are some of my thoughts when it comes to exploring partnerships.
Joe De Rosa
EVP, AlphaStaff
Joe De Rosa
EVP, AlphaStaff
- 110
Where are you located, in regards to losing that many agents? Were they in the captive P&C shop that had lots of claims due to the devastation this spring (tornado/flooding)? I"ve never done P&C, but I would imagine there are loss ratios on claims their home office needs to have them below??
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