Cluster F_________ed

[AZDave]

Its a love hate relationship. My group can term me for three reasons: non-profitability (three years straight greater than 70%), felony conviction or conducting business outside the 'group'.

Its a great group and happy to be part of it, except for one day out of the month.

Dave

 

[FL P&C Broker]

Its a love hate relationship. My group can term me for three reasons: non-profitability (three years straight greater than 70%), felony conviction or conducting business outside the 'group'

Now that seems like a fair compromise.

 

[Bell Curve]

You mean the old bait and switch?
Good one GXR2!! I will definitely ask that question

 

[rbadoux]

Ok this is driving me nuts

I have my P&C license in California I have no experience and no book. I researched a couple of clusters and they all seem to be a good deal if you are the cluster.
Would like to start selling HO insurance.

Wish list:
Binding authority
I get to keep my book
low startup fee
"easy" divorce clause.

Can anyone recommend a semi decent cluster in California for a newbie like me?

Go 100% indy. Unless the cluster can offer great market opportunities, there really is no need. Obtaining markets should not be a big challenge as many MGA's are more than happy to appoint.

Your startup fees are your basic business license fees, E&O, bond, phone line, email account, AMS. Aside from that, either buy leads or cold call.

You get to keep your book.

No experience, no book = no binding authority. Really, good luck with that wish.

Divorce clause... generate some production first, companies don't care if you leave with negligible numbers. If your numbers a great, use it as leverage.

 

[marindependent]

There are a lot of solid points on here that have been made. Starting out with NO book of business is a real struggle.

Be very careful what you sign and what you agree to.

 

[PhilL]

"...there is no perfect answer here...at all." That statement from 'insurance1822' really does put this discussion in proper perspective.

All the agency networks' member agreements treat termination differently. Picking up on some of the recent discussion about termination scenarios, there is no way to cover every situation that could occur.

Last week, I asked a guy who was trying to interest me in a guaranteed annuity:
"How do I know that your recommended carrier will be in business for the rest of my life?" He answered that his recommended insurance companies were "huge" and couldn't possibly go out of business. Really?

 

[shawnmwalker]

Phil is right.

Consider contract law in Ins1654 example above. It is my understanding that the contract dictates the outcome of his scenario. We often get the question what happens when....The owner sells to.... want happens when.....Contract is still valid.....