Broker VS Agent

[ccage]

I do not know what you are doing now or your back ground. However, do not over analyze this. You can research this and that for a solidify year and not know Jack until you get out there and try to get ink on paper.
Just my 2cents.

Probably the best advice I have gotten of 2018.

 

[ccage]

Oh, and you are correct this forum is very helpful. But many of these people did the hard work to learn. They do not owe any of us Jack. How much do any of us do for free daily. How much volunteer work do we do daily? Many of these people on here do charity work every day here.

I get much more out of the forum than I give.

Get started and Good luck.

Next best advice I have gotten of 2018

 

[Todd King]

I am licensed in life. I have a couple of friends who already are in the business,

I originally had a bunch of questions about contract levels (I.e. how to become an MGA, IMO) and basically eventually would like the challenge of being a Manager. The problem is you ask around to an agent directly and you don't get a straight answer, just an agent contract and then say "sign up I will teach you everything"

Then I met an agent at a networking event who (I think had a couple of drinks) told me that he got an MGA contract right out the gate. So I was like ok I am going to do ALOT of research before I sign up.

The people on this forum are VERY helpful.

I have seen you asking about this before, so let me try my best to explain. "Broker" is a very loose term on the life and health side. Meaning, there really is no such thing. There is on the P&C and investment side of things....to my understanding.

When we say broker on the life/health side, we are usually simply talking about someone who has some agents under them as a downline. It is also usually used in referring to someone that has multiple companies in his bag along with the downlines.

So, now we have someone with downlines, which is also known as an agency. The broker can also be known as a General Agency (GA) or Managing General Agent (MGA). Once again, these are loose terms as well. For instance, some companies will label a certain level as MGA, but it can be also represent their street level, which anyone can get....but that doesn't necessarily make them an MGA by true definition.

So now we have Broker, GA, and MGA...which can all mean the same thing. An IMO is usually an organization on the life side that concentrates on recruiting and usually all over, not just in a local area or state. The term can also be reflected by certain companies contract levels. For instance, Foresters has IMO, IMO1 & IMO2, and IMO3 levels. They also have NMO levels. (National Marketing Organization). NMO's you might could refer as a super IMO if you will.

If you hear the term FMO (Field Marketing Organization), that is the same as an IMO, but more on the health side.

Right now, you just want to be an agent. You're new, so you really don't want to be hiring agents at this point. You wouldn't be able to teach them. You might grow into that.

I will caution you though....agents can take up a lot of your time. Think twice in the future before hiring any.

I hope this helps sort it out for you.

 

[ccage]

I have seen you asking about this before, so let me try my best to explain. "Broker" is a very loose term on the life and health side. Meaning, there really is no such thing. There is on the P&C and investment side of things....to my understanding.

When we say broker on the life/health side, we are usually simply talking about someone who has some agents under them as a downline. It is also usually used in referring to someone that has multiple companies in his bag along with the downlines.

So, now we have someone with downlines, which is also known as an agency. The broker can also be known as a General Agency (GA) or Managing General Agent (MGA). Once again, these are loose terms as well. For instance, some companies will label a certain level as MGA, but it can be also represent their street level, which anyone can get....but that doesn't necessarily make them an MGA by true definition.

So now we have Broker, GA, and MGA...which can all mean the same thing. An IMO is usually an organization on the life side that concentrates on recruiting and usually all over, not just in a local area or state. The term can also be reflected by certain companies contract levels. For instance, Foresters has IMO, IMO1 & IMO2, and IMO3 levels. They also have NMO levels. (National Marketing Organization). NMO's you might could refer as a super IMO if you will.

If you hear the term FMO (Field Marketing Organization), that is the same as an IMO, but more on the health side.

Right now, you just want to be an agent. You're new, so you really don't want to be hiring agents at this point. You wouldn't be able to teach them. You might grow into that.

I will caution you though....agents can take up a lot of your time. Think twice in the future before hiring any.

I hope this helps sort it out for you.

Thank you for taking time and explaining it to me, and that actually fully explains why I have been getting responses like "well it hard to explain" because truthfully it looks like there is no one answer it depends on the company.

... and it seems like managing agents is an art form in itself.

Thanks for the help

 

[ccage]

I have seen you asking about this before, so let me try my best to explain. "Broker" is a very loose term on the life and health side. Meaning, there really is no such thing. There is on the P&C and investment side of things....to my understanding.

The main reason why I have asked it before, and kept asking it is because I had someone tell me that you need to watch out for some companies or some MGA's or GA's because they will tell you stuff on requirements of contract level, because they want to keep you on the same contract.

So I started overanalyzing that and started thing, well if I don't have to start as an Agent, then can I start at this.

So that is what happened

Thanks Again!

 

[VolAgent]

I'll keep it real simple.

Agent has a contract with the company, is paid by the company and by law represents the company.

Broker does not have a contract with the company, is paid by the policyholder, and by law represents the policyholder.

The vast majority of people in the insurance business are agents, the question is are they captive or independent. Some states require separate licenses to be a broker.

 

[WinoBlues]

Kinda like just about every other P rimerica agent is a VP.

 

[rousemark]

The main reason why I have asked it before, and kept asking it is because I had someone tell me that you need to watch out for some companies or some MGA's or GA's because they will tell you stuff on requirements of contract level, because they want to keep you on the same contract.

So I started overanalyzing that and started thing, well if I don't have to start as an Agent, then can I start at this.

So that is what happened

Thanks Again!

Rule#1: a title is just a name.
Rule #2:: The numbers are what count.
Rule #3: Rule #2 should always be your rule #1.

In other words, it does not make any difference what your up-line's title is or what your title is on the contract, it is the commission levels and the vesting of those commission you should be concerned about. I have had titles including, Agent, MGA, PPGA, GA, State Manager, Broker, etc. Guess what? Not a single one of those titles ever put a morsel of food on my family's table.

 

[ccage]

Kinda like just about every other P rimerica agent is a VP.

LOL... My friend said they are like a cult. He said he offered one of them a triple % increase one the contract to sign up with him because his numbers, and the guy wouldnt do it, then tried flipping the script and recuiting him on a much lower contract, My friend said no because he would be reducing his pay, and the guys response was "Yeah, but we are primerica"

 

[ccage]

Rule#1: a title is just a name.
Rule #2:: The numbers are what count.
Rule #3: Rule #2 should always be your rule #1.

In other words, it does not make any difference what your up-line's title is or what your title is on the contract, it is the commission levels and the vesting of those commission you should be concerned about. I have had titles including, Agent, MGA, PPGA, GA, State Manager, Broker, etc. Guess what? Not a single one of those titles ever put a morsel of food on my family's table.

Gotcha its contract % I should worry about not the title.