Criminal Background- Show Stopper for Independent Agent?

rse123

New Member
Hello-

I have worked as a Finance Analyst for various insurance companies for over 10 years. I have an MBA in Finance and ChFC designation. I also have an excellent current income and credit score. I have not yet left my W2 job but am seriously considering starting my own independent health and life insurance agency.

I just obtained my Texas state license today (8/11/2015) after disclosing 3 Misdemeanor convictions and 2 Misdemeanor deferred adjudications from the 1990s. None of the offenses involved fraud or dishonesty nor do they have any bearing on my current ability to perform in any capacity. They are not offenses for which a license may be denied according to the Texas Insurance Code, Texas Administrative Code, or 18 U.S.C. 1033. The disclosure process for my license was exhausting and included providing original certified copies of every court document, explaining the circumstances leading up to each event, indicating my age at the time of each event (17-24 years old), and providing letters of recommendation from persons aware of my criminal past.

As an independent agent, I will now have to work with various FMOs to contract with 20-50 different carriers to be competitive. From what I have gathered, each carrier has their own application for appointments, most of which require extensive criminal background disclosure and documentation. I am extremely concerned about the administrative burden and risk of not getting contracted due to my past. My questions follow:

• When applying with each carrier, will I need to disclose all records requested on each application even though I have already passed the TDI background check and obtained my state license?
• If you have your state license, isn’t it basically a given that you will be able to get appointed with any carrier? Will I be denied carrier appointments due to my background? How much of a delay and administrative burden will the background issues create?
• How does the appointment process work when contracting through FMOs- do you fill out one application for the FMO and they do the rest of the work for you?
• How many carriers will I need to contract with to be optimally competitive and possibly expand my practice into multiple areas of life and health insurance?

I know many of these questions cannot be answered with any level of certainty but am trying to get a feel for what I am up against before I quit my W2 job. Any constructive input on this issue is respectfully requested.
 
• When applying with each carrier, will I need to disclose all records requested on each application even though I have already passed the TDI background check and obtained my state license?

Yes.

• If you have your state license, isn’t it basically a given that you will be able to get appointed with any carrier? Will I be denied carrier appointments due to my background? How much of a delay and administrative burden will the background issues create?

No. Possibly. An additional wait time is expected. Probably an additional week to make a decision.

• How does the appointment process work when contracting through FMOs- do you fill out one application for the FMO and they do the rest of the work for you?

No. Some FMOs use electronic applications that can simplify the process, but you still have to do it.

• How many carriers will I need to contract with to be optimally competitive and possibly expand my practice into multiple areas of life and health insurance?

You'll figure that out over time. That'll be based on your ideal client profile and filling their needs.

If you're competing on price, you'll need to be appointed with as many carriers as possible.

If you're focusing on strategy & planning, then you'll only need perhaps 2-3 carriers with complimentary products.

----------

However, be sure to read the questions asked by each carrier specifically.

Most will ask about any felonies in the past 10 years. So answer the question EXACTLY.

If it asked "if you have EVER been convicted"... then you'd need to disclose.

Only provide information that they are asking for.

Pretend you are on the witness stand and you are simply answering the question EXACTLY as it is stated.

Things over 10 years ago shouldn't be much of a hindrance.
 
Thanks for the reply. That is extremely helpful information. A few other questions...

Is the appointment process typically similar to a job application process requiring references, interviews, etc.?

Or is it more like a- 1.) Submit your application and 2.) Get a accept or reject answer back?

How long does it typically take after application submission to get appointed?

Thanks again for the feedback.
 
Thanks for the reply. That is extremely helpful information. A few other questions...

Is the appointment process typically similar to a job application process requiring references, interviews, etc.?

Or is it more like a- 1.) Submit your application and 2.) Get a accept or reject answer back?

How long does it typically take after application submission to get appointed?

Thanks again for the feedback.
Some will ask you to list every employer for the last ten years.

Go ahead and appoint with health carriers first as those are generally easier.

Then appoint with the life insurance carriers for the lines you want to sell.

Just expect a repeat of providing documentation for every carrier you appointment with for the rest of your life.

Even if get you are granted a state expungement, you still have to disclose.
 
Thanks for the reply. That is extremely helpful information. A few other questions...

Is the appointment process typically similar to a job application process requiring references, interviews, etc.?

Or is it more like a- 1.) Submit your application and 2.) Get a accept or reject answer back?

How long does it typically take after application submission to get appointed?

Thanks again for the feedback.

You'll typically need to provide 5 years of addresses and 10 years of employment history.

No "interview" required for broker contracts.

Just submit and find out later.

It usually is much quicker than the amount of time it took for you to reply to my first response.
 
Back
Top