Captive Newbie with Yet Another Question

Sep 16, 2007

  1. blaze1x
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    blaze1x Super Genius

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    I've tried to backtrack through older posts and find out the answer to this next question, but no dice. Here's the question:

    As a captive agent, I'm only able to offer one product (Assurant). Now I know that I don't work for the insurance company, so what I'm confused about is this: Why not offer the other insurance plans out there like Blue Cross or Aetna or Humana, etc? I know what I'm taught, that the other companies all put out crap insurance and that as soon as there is a better product we'll sell it......

    but seriously, why would my brokerage risk losing all that potential money by not offering a cheaper product for the people with shallow pockets?

    Thanks
     
    blaze1x, Sep 16, 2007
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  2. MHart
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    MHart Super Genius

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    Can't speak for your state but Blue Cross, and Aetna do not have General Agent contracts in california so you cannot get overrides. I am curious to see if you are truly captive or if that is the reason. Now if you work for a P and C agency then that could be the reason for example State Farm that has an agreement with Assurant. Hope this helps.
     
    MHart, Sep 16, 2007
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  3. blaze1x
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    blaze1x Super Genius

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    I was more realistically thinking of the Humana and Golden Rule's of the world.
     
    blaze1x, Sep 16, 2007
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  4. newmindfashion
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    newmindfashion Guru

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    Blaze,
    Get appointed with these companies yourself and offer them along with Assurant. How can there be an agency (other than State Farm as MHart mentioned) where you can only sell Assurant? I've never even heard of that...

    How would they even know you have other companies?
     
  5. David C
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    David C Guru

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    Newmindfashion, In Georgia anyone can go to the insurance commissioners website, type in an agents name and see all the companies he's appointed with, and who he HAS been appointed with.
     
    David C, Sep 17, 2007
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  6. newmindfashion
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    newmindfashion Guru

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    My state has the same thing which makes my question look fairly stupid.

    Are there really agencies (other than the State Farm connection) that are having people sign off on only being able to sell Assurant and that's it?

    The MGAs I'm familiar with don't push total captivity.
     
  7. coop
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    coop New Member

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    most companies go by the system " Do one thing and do it well " but i've found that its just a case not wanting to give the agents to many things to learn. The good thing is that by doing that it leaves a TON of business on the table for me and my agents :)
     
    coop, Sep 17, 2007
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  8. Consultant
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    Oh ooh.. and mine... but we like Assurant :)

    Too bad your captive; Mega might have been a better choice - yes their plans are horrible but there's no way your manager would let you go on this forum.

    He'd be hounding you like a dog and you would be making quite a lot of money and wouldn't worry selling one plan. You took a bite of the broker apple and I'm assuming it's hurting your business. Assurant is Awesome - Go sell it!
     
  9. blaze1x
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    blaze1x Super Genius

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    Not doing bad on the money end, I'm just trying to understand the reasoning behind only selling one plan.
     
    blaze1x, Sep 17, 2007
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  10. newmindfashion
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    newmindfashion Guru

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    Blaze,
    You're a professional insurance agent. Offering only one product gives you less credibility with customers. At the very least, establish a commission splitting arrangement with a true independent agent for people you can't help or those that just don't like Assurant's plan offerings so you're not leaving as-earned income on the table.

    Part of what we do is building renewal income. I'd also recommend you cap how much you're getting advanced from Assurant and recommend you try to get paid directly by the company.

    Read your contract carefully. How captive are you in reality? You may only have to prioritize showing Assurant first and then the other carriers and may have followed the contract provisions.
     
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