Existing Life and Health Agent, but New on the P & C side

Jan 16, 2019

  1. benneaf
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    benneaf Expert

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    I've been active on the life and health side for 6 years, but there is a lot of uncertainty there on the health side and lots of compliance with Medicare. I got my P & C license last year. I am looking for carriers (in TN). Like a lot of L & H agents I work out of my house and understand that many P & C carriers would prefer a store front. I want to get there eventually, but I'm not there yet. So I need to find carriers that are open to opening a skratch account and will let me work out of my house for the time being. For P & C I am planning on focusing on Home and Auto and not adding commercial for some time. Any input into which carriers I should approach?
     
    benneaf, Jan 16, 2019
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  2. PhilL
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    PhilL Guru

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    Benneaf, Yours is definitely not a unique situation. Rather than the issue for you being the lack of a storefront operation, your P&C experience level will probably create greater roadblocks for you, as you try to find personal lines carriers that will be interested in talking to you. You'll most probably have to join a agency network. There are some possible options for you to consider. Feel free to contact me if you want to talk about your situation and what might be out there for you to possibly pursue.
     
    PhilL, Jan 16, 2019
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  3. benneaf
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    benneaf Expert

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    I will give you a call tomorrow.
     
    benneaf, Jan 16, 2019
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  4. Mike007
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    Mike007 Expert

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    Even if you joined a cluster, which is an IMO on the P&C side, you will limit your appointments because the decisions about having a store front is not a demand from the cluster, it is a demand from the insurance company.

    If I was in your situation, I would go around town and see if you can talk to an owner of a P&C agency and see if he/she is willing to do a 1099 contract with you and do a commission split. Many of them are willing to listen. A smart person never says no to new money.

    Many years ago, I began my insurance career as a producer for a friend of mine. He was a captive agent for Prudential. At that time, Prudential still had their P&C (before selling it off years later to Liberty Mutual).

    During that time, anytime we could not write business with Prudential, we referred it out to an independent broker. We had an outside contract with this independent broker on the side as a 1099 producer so we had access to his companies and since we were just producer, it didn't matter if we had an office or not, as long as the P&C Agency owner has an office, that's all that matters. Also as a 1099 producer, we can do whatever we pleased, the Agency Owner has no say in what we do. As long as we sent him clients, we both made money. He kept his cut, he 1099 our cut to us.
     
    Mike007, Jan 18, 2019
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  5. benneaf
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    benneaf Expert

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    There is a guy I know whose office is about 20-25 minutes away from me. I've had a couple of conversations with him and he seems very willing to work with me and help me learn the business. I would really like to have all my contracts direct (or as direct as possible to control my trail) but I'm finding few that will work with me. So...he's got access and I don't. Do you think it would be out of line to ask him for some sort of written agreement to get releases when/if I ask for them a few years on down the line?
     
    benneaf, Jan 18, 2019
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  6. PhilL
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    A.B. - Some of the questions I sent you should be asked in your efforts to examine an opportunity to possibly work for an existing agency in your area. All the best to you!
     
    PhilL, Jan 20, 2019
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  7. LostDollar
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    I don't understand insurance business well enough to know whether releases in this case has something to do with carriers or individual customers.

    Just for consideration though if you ask him for some long term benefit he may say okay, but I will cut your current compensation cut in exchange. From some of the things I've seen on p&c forum I don't know if long term individual customer retention will be the same on p&c as what you might expect from Medicare experience. Just be reasonably sure you are not giving up current income for a nonexistent future benefit.
     
  8. Mike007
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    Mike007 Expert

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    If you want direct contract with insurance companies, I don't see that happening by joining another agency. You may have to get appointments on your own.

    Even with clusters, you aren't really directly contracted with the insurance companies. You are appointed under the cluster's contract. Often times, you might start out using the cluster's agent code until you can prove you have enough sales for them to even appoint you a different agent code under the cluster.

    When my friend and I partnered with other independent agents. As far as getting our cut and our renewals, it never was an issue with people we had worked with in the past. The agencies that we dealt with in our area have always been fair. We get paid after they get their money. We get our renewals after they get theirs from the insurance companies. These agency owners understand that the clients we bring them are our clients and that if we chose to leave, we can take our clients with us. Or we can leave it there and they will keep paying us until the clients leave on their own.

    I believe agencies do not mind bringing people under their agency and use their contracts but for you to get your own contracts under their agency, I don't see it happening.

    But whatever you and the agency owner agreed on. Have it in writing.
     
    Last edited: Jan 21, 2019
    Mike007, Jan 21, 2019
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  9. benneaf
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    benneaf Expert

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    I'm still looking, but so far the only direct appointments are Encompass and Dairyland. I have access to some others through Superior Access. I'll keep looking and working on it.
     
    benneaf, Jan 24, 2019
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  10. wilhelmagency
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    wilhelmagency New Member

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    Foremost for home insurance. No store front needed.
    If you sell auto...you will be busy with lots of situations.
     
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