- 9,744
Closers versus Insurance Salespersons ???
- Thread starter myinsurebiz
- Start date
- Thread starter
- #22
- 6,007
" I am with you, not only not legal, but who's E&O is going to pick up the mistakes made by the guy who can sell anything? "
Please share with us the source that dictates this concept is "illegal" if using licensed insurance agents? Thanks!
John - " Why not just do it all - customer service is minimal and renewals rock. "
I am not interested in just selling myself and limiting myself to $100k / $200k a year. I want to create wealth. To do this - I need massive volume and can't do it myself - I need a team.
Seems the best way to build a strong team and do it quickly - is utilizing the sub agent concept. It's not like I'm inventing anything new. Sub Agents have been around longer than I've been alive.
So - my goal is to attract licensed insurance agents that are appointed in various States, and that are appointed with various carriers.
Then we train the sub agents on the various products, gather a profile sheet on the prospective client - ie: what they want, what they have, their present health conditions, etc and post this info within our intranet so the appropriate writing agents can advise the sub agent on the best plan for that specific client. The sub agent can then approach the client with a proposal and close the deal.
Once paperwork is complete, the sub agent forwards such to their respective writing agent for their review and follow up. If it makes sense for the client - the deal is done. If not - back to square one.
Tom
Please share with us the source that dictates this concept is "illegal" if using licensed insurance agents? Thanks!
John - " Why not just do it all - customer service is minimal and renewals rock. "
I am not interested in just selling myself and limiting myself to $100k / $200k a year. I want to create wealth. To do this - I need massive volume and can't do it myself - I need a team.
Seems the best way to build a strong team and do it quickly - is utilizing the sub agent concept. It's not like I'm inventing anything new. Sub Agents have been around longer than I've been alive.
So - my goal is to attract licensed insurance agents that are appointed in various States, and that are appointed with various carriers.
Then we train the sub agents on the various products, gather a profile sheet on the prospective client - ie: what they want, what they have, their present health conditions, etc and post this info within our intranet so the appropriate writing agents can advise the sub agent on the best plan for that specific client. The sub agent can then approach the client with a proposal and close the deal.
Once paperwork is complete, the sub agent forwards such to their respective writing agent for their review and follow up. If it makes sense for the client - the deal is done. If not - back to square one.
Tom
- 14,808
Sounds to me like you just need to start an agency. But if all you're after is just wealth I'd imagine there are much more lucrative markets for true closers than insurance.
- 3,384
In California, what you are describing is called being a "broker". California does not allow brokers to be appointed with any carrier and may not recommend any specific carrier's product. A fee must be charged in lieu (with health insurance that would be in addition) to any commissions paid by a carrier and the broker is strictly prohibited from receiving any commission from that carrier or carrier's agent .
Additionally, "brokers" may not receive an payments from anyone in regards to the sale of an insurance product except for the fee charged to the buying party, and must be licensed as a "broker" (it is a separate license here) and must post a bond with the State of California.
Last edited:
The WA was not present at the pitch. They have no way of knowing what was said, what materials were used.
No respectable agent would ever sign on for such a deal.
Of course there are a lot of bozo agents that would probably jump at the chance to pick up some "free" money.
And Paul . . . I can see you are distracted. Just how many times have you watched Glengarry Glen Ross? You sound like those guys who used to watch Wall Street and quote Michael Douglas (Gordon Gecko) in almost every scene.
- Thread starter
- #26
- 6,007
So Dave - in California, two agents that work on the same deal can't share the commissions?
Or - can an agent not refer a client to another agent and receive a referral fee or charge the writing agent for the lead?
That may be actually the way to go. Just charge the writing agent a substantial fee for a lead that is basically pre-closed.
Tom
Or - can an agent not refer a client to another agent and receive a referral fee or charge the writing agent for the lead?
That may be actually the way to go. Just charge the writing agent a substantial fee for a lead that is basically pre-closed.
Tom
- 3,384
Carriers in California require any splitting or sharing of commission to be recorded on the application with a primary agent and sub-agent disclosure. Failure to do so and rebaiting any commission $$ to a non-appointed agent is grounds for contract termination in addition to reporting to DOI and potential loss of license for the agents involved.
Really, it's a dumb idea and quite prohibited in California.
Really, it's a dumb idea and quite prohibited in California.
- 3,384
Of course they can, as long as both agents are appointed with the insurance carrier and niether agent is licensed as a "broker".
As long as the agent is licensed and appointed, this can be done. It is specifically prohibited between appointed agents and "brokers". Broker must charge a fee or be in license violation in California.
Who would pay it? It could theoretically work that way, but how much would an agent pay to sell a family and HSA plan??
Tom[/quote]
- Thread starter
- #29
- 6,007
Bob -
Here in Georgia, we will just utilize the sub-agent licensing for instate sales.
I will check tomorrow on surrounding States to see if they have a "sub-agent" license. If so - this is the way to go.
After a few phone calls today from forum members - if we can't use "sub agents" in a certain State, then providing the Writing Agent with a pre-closed lead for a certain fee seems to be legit.
Tom
Here in Georgia, we will just utilize the sub-agent licensing for instate sales.
I will check tomorrow on surrounding States to see if they have a "sub-agent" license. If so - this is the way to go.
After a few phone calls today from forum members - if we can't use "sub agents" in a certain State, then providing the Writing Agent with a pre-closed lead for a certain fee seems to be legit.
Tom
- 9,744
Don't waste your time in Florida - there's no such thing.
In order to get to the point where you'd like to be with your "pre-closed" lead, your "pre-closers" need to have a Florida license.
I'm sure you could probably get away with it until...
Somebody like me finds out about it and goes right to Tallahassee (lots of valuable contacts!), or one of your "partner" agents gets pissed off and drops a dime on ya.
Sorry, insurance is not a good vehicle for your lofty wealth ambitions, it is get rich "slow" (but lasting).
Maybe real estate schemes, or perhaps drug dealing would be a better (albeit riskier) alternative...
Similar threads
