Buying Book Need Help

Apr 18, 2016

  1. cap361
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    cap361 Expert

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    I'm in the process of buying a book from a retiring independent agent in the state of Texas. They mainly write with Progressive and ASI. They will be staying on and helping me transition to take over the business. I'm have limited experience in this field so my question is


    "Is there any chance the carrier will drop me once everything is switched into my name?"

    Thanks in advance!
     
    cap361, Apr 18, 2016
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  2. insurance1822
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    insurance1822 Guru

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    If the book has horrific loss ratios & performance issues then they may just not approve you thus making it impossible to sell. Get it in writing that you're approved for an appointment. Again, if the book is a dump then they could use that to get off it
     
  3. b61mack
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    b61mack Guru

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    It should be no problem with Progressive
     
    b61mack, Apr 18, 2016
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  4. cap361
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    cap361 Expert

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    Progressive and ASI? I have the contract drawn out already. Should I check with all the carriers if they will confirm my appointment first or will they just give it to me since I'm buying the book.
     
    cap361, Apr 18, 2016
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  5. cap361
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    cap361 Expert

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    So Progressive and ASI should appointment me without a problem? Will it better if I get the appointments switch over to myself first before signing contract?
     
    cap361, Apr 19, 2016
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  6. Andle
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    Andle Expert

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    Contact Progressive and ASI contracting and get something in writing. No one here can assure you anything.
     
    Andle, Apr 19, 2016
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  7. Derrick
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    Derrick Super Genius

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    You're going to want to talk with the carrier rep. Progressive/ASI shouldn't be a problem, but just the other day I heard of an agency selling their book, and a regional yanked the appointment. And the only reason why the buying agency bought the book in the first place is for said regional.

    Unlike insurance1822, I think there is some value in carrier reps.
     
    Derrick, Apr 19, 2016
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  8. cap361
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    cap361 Expert

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    Thanks for the info Derrick. I will try to get something in writing from the regional carriers.

    I already contacted Progressive and they stated that it's normally a simple transfer and for ASI they are requiring an approval from there marketing rep.
     
    cap361, Apr 19, 2016
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  9. hesse
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    write into the selling contract its contingent upon being appointed. If you cant get an appointment it dramatically effects the value of the book
     
    hesse, Apr 19, 2016
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