Contract for P & C Agency - Help Please!

[texaslady]

I just got my P & C license..... well, I passed my test and do my fingerprints tomorrow. Does anybody know if I need an agency to sponsor me on the actual application for my license (as it pertains to appointments on the application)? Or can I just get licensed and then do my appointments later?

Here is my plan......

I already have my Life and Health license. I want to work with this agency (which consists of one guy) in two ways. I want to be an independent P & C agent through him, and I also want to be an independent life and health agent, marketing and writing those products for their existing book of business. I want to maintain my independence however on my own business I write and leads I get on my own. So, how would I set up this contract? The guy is basically leaving it up to me to set this up. How can I get a 70/30 split on life and health policies written to his existing book of business, but keep my general agent contracts with the insurance carriers? Should I just split the commission with him after I receive it? He does NOT have a life/health license, so it can't be split by the insurance carriers. Can I pay him ex post facto? I want to keep this all legal....... I'm not sure if that would even be considered rebating.

Also, what about the P & C side? I know 60/40 split is typical, and from what I've heard, I can't get my own contracts with carriers like I can on the Life and Health side unless I am writing massive amounts of business. How are renewals handled? Chargebacks?

As for my application for my actual license, do I even need sponsorship?

Can somebody please give me some advice, and what I would REALLY love is a general contract I could use. Does anybody have one, or some sort of template? Any thoughts, advice, and input will be VERY appreciated!

Joanna

 

[NCAgent]

I just got my P & C license..... well, I passed my test and do my fingerprints tomorrow. Does anybody know if I need an agency to sponsor me on the actual application for my license (as it pertains to appointments on the application)? Or can I just get licensed and then do my appointments later?

Here is my plan......

I already have my Life and Health license. I want to work with this agency (which consists of one guy) in two ways. I want to be an independent P & C agent through him, and I also want to be an independent life and health agent, marketing and writing those products for their existing book of business. I want to maintain my independence however on my own business I write and leads I get on my own. So, how would I set up this contract? The guy is basically leaving it up to me to set this up. How can I get a 70/30 split on life and health policies written to his existing book of business, but keep my general agent contracts with the insurance carriers? Should I just split the commission with him after I receive it? He does NOT have a life/health license, so it can't be split by the insurance carriers. Can I pay him ex post facto? I want to keep this all legal....... I'm not sure if that would even be considered rebating.

Also, what about the P & C side? I know 60/40 split is typical, and from what I've heard, I can't get my own contracts with carriers like I can on the Life and Health side unless I am writing massive amounts of business. How are renewals handled? Chargebacks?

As for my application for my actual license, do I even need sponsorship?

Can somebody please give me some advice, and what I would REALLY love is a general contract I could use. Does anybody have one, or some sort of template? Any thoughts, advice, and input will be VERY appreciated!

Joanna

He can't get a commission split at all without a license, just a referral fee. That is how it is in many states- TX could be different but I don't see why it would be. Talk to the DOI about that and what the max fee is allowed to be, that is what will be your limiting factor on compensation. It might be better to make an arrangement for a small referral fee and pay rent in his agency each month depending on your production. For the license you don't need a sponsorship like a securities license to get your P&C. Just fill out the paperwork.

Renewals are in the contract paperwork for how much you get and book ownership (if any) and things like that. Chargebacks are up to the agency but I think usually a chargeback is handled by taking the amount owed out of your paycheck for the next month. Most commissions for P&C are assigned in my experience, so I would probably expect that to be the case with you as well.

I don't have a general contract floating around, if you get one maybe you can pass that on my way for me to see, too?

 

[nyc2phi]

For the contract I would find a lawyer that specializes in this in your area to help you draft one up.

Renewals are up to the agent him self whether or not he will give you the same split on them. Chargebacks will probably be taken out your next check. No sponsor need for the test.

Put together a business plan and try to get appointed with a few carriers your self, start thinking about long term as well.

Good luck!

 

[Medicare Man]

I have a lot of the same questions. Can anyone experienced as an indy P&C producer contact me and walk me through the common approaches and methods to set this up, what is fair and common with regard to the questions posed by TexasLady?

Thanks!