Getting Appointed with Credit Issues

[shepnerd]

Need some help from you veterans out there...

I had a real estate business go under before I got into the insurance game and I'm having some trouble getting appointments with some of the carriers because of some of the credit issues that came out of that mess.

Can some of the more experienced guys give me some guidance here?

I was playing on a pretty big scale buying and selling houses and had more than a few that wouldnt sell when the market tanked and I practically went bankrupt (did not file) and am still cleaning up some of the stuff.

I've gotten some declined appointments, I THINK primarilly from 4 liens showing on my credit. None are for anything I actually owe- they are for small things like a trash bill in a city on a house I didnt own when it was attached, etc. Its just SUCH a pain in the arse dealing with government idiots trying to get them off my credit and I dont borrow money anymore so havent been too concerned with what my credit looks like.

I've also got a few chargeoffs totalling some real money- high 4 figures or so. My company owned 8 figures worth of real estate and had a monthly cash flow of $250,000 so looking at the dollars on the surface is a little skewered since I was dealing with some pretty big numbers. It actually took a lot of work to keep the numbers as low as they are.

ANYWAY, other than the stuff related to the business, my credit was good, and the situation can be explained, but I think I need someone in my corner when talking to these carriers(?). I'm new to the business, and am selling health insurance at a call center while I get this sorted out (YAWN), but really want to get into the life side and need to know a couple of things:

First, are there companies that I'd feel good about selling that will appoint me with the credit stuff hanging out there? I've got three for FE, and had to write letters about my credit on all of those but want to sell life and annuity. My game plan is to prospect small business owners (since I know a ton and relate well from running in those circles) and need to have the ammo to service them...
I've been turned down by allianz, Aviva, & American Equity so stopped my efforts.

Second, is there a way to work under someone else's appointment as I get this stuff cleaned up like I'm currently doing with health? Basically, I still dont understand how brokerage channels/FMO's, IMO's, etc. work. I'm trying to stay indie, but its obvious I need a mentor of some sort.

As a side note, I'm perfectly content to work as earned on everything I do, I just want to be able to offer the right products for my customer base.

Also, I'm licensed in 42 states, but live in Georgia if that makes any difference.


Any and all help would be GREATLY appreciated!

 

[STIBROKER]

you can always try talking to the company's and see if they would appoint you on a as earned basis......

 

[DHK]

Do you have E&O coverage? If you can get E&O, then life & annuity carriers should be easier to contract with.

Keep in mind that to qualify for E&O, you usually have to answer the same questions as you do to get contracted.

I don't remember if FE requires any E&O for contracting...?

 

[shepnerd]

Yep, DHK, I've got an E&O policy. There were a few questions on the app, but that sailed through without a hitch.

STI, your comment raises a question- what is it they are concerned with on the credit stuff- Is there a possibility of financial loss of some sort for them if I'm not taking advances? I've noticed there are a lot of yahoos peddling insurance out there that dont know what they are doing, but we are licensed by the state and if I'm not asking for advances and have E&O can they still lose money on me?

I used to run a division for a pretty big finance company and we would pull credit and such and it definitey affected someone's ability to get a job with us, but we did read between the lines a little and look to see what was going on. Big difference between someone thats never paid their bills on time from someone that had stellar credit for a while, then an implosion, then good credit again. It was almost always unexpected job loss, medical bills, or business failure.

My experience has always been through a marketing organization and I was COMPLETELY green when doing that last summer, so didnt know how the industry was structured. Maybe at this point I can call the carriers direct(?) and explain the situation and feel them out. Honestly I still dont even know if you can do that. If so do you think thats better than going through someone that could have some clout when talking to the carrier?

Thanks for the input!

 

[b61mack]

maybe you could find a captive company. then you are only dealing with one company.

 

[STIBROKER]

If you have an advance and submit 10 apps and all issue and they give you a 9 month advance ...you take the money and run and all 10 policy's cancel in one month because they were friends of yours and you needed a quick buck to pay bills.......

STI, your comment raises a question- what is it they are concerned with on the credit stuff....

 

[LGilmore]

No offense intended but if you haven't noticed, insurance is a risk adverse industry and you are a risk.

One reason was already stated, another would be if you foul up with a client, and the client sues, who has deeper pockets? With every agent a company takes on, they increase the possibility of being sued (and losing) because of the connection.

For example, an agent in my state just stole 1.2 million from 5 elderly people as a bankers life rep. Bankers life had no idea since none of the money ever made it to them. Yet, they are being held responsible for replacing that 1.2 million because they were supposed to have "oversight" of this agent.

Unfortunately, if you have problems in your past, most companies will consider them to be problems in the future and they simply don't need the risk.

 

[shepnerd]

STI, but if you did everything as earned, wouldnt that negate the credit risk?

LGilmore, you arent going to hurt my feelings, I appreciate you being blunt. That would be more of a fraud risk, and there isnt any of that in my history-I just got caught with my pants down owning a ridiculous amount of property when the RE market tanked. Guess there is some truth to that, though. I used to say "people in bad money spots do weird things" back in the day- I had a lot of people steal from me as the money dried up in Real Estate.

Anyway, does this mean I'm just SOL in the insurance game, or that I need to get this stuff cleaned up? I've got 3 appointments right now, which says to me some are more strict than others on appointing agents which is why I posted the questions. Can anyone give me guidance on who is better on this than others?

Also, I was wondering if there was a way to get appointed through other channels. I've got a friend that owns a pretty large IMO I'm hoping to meet with this week and I was curious if those guys have any sway with the carriers.

I mean, I get the situation, but its not like I was making $50k/yr and couldnt manage my finances. I was a six figure guy in the corporate world and then built a multi-million dollar business from scratch in under 5 years. The only way to do that is to leverage yourself and thats a double edged sword that bit me in the arse. Lesson learned, but does that really mean I have no future in insurance?

 

[LGilmore]

Again, it's about risk in a risk adverse industry. Most companies aren't going to take a risk. Yes, I understand your situation is not exactly the same, but the odds are tilted that way. It's a red flag.

Sorry.

 

[Todd King]

Anyway, does this mean I'm just SOL in the insurance game, or that I need to get this stuff cleaned up? I've got 3 appointments right now, which says to me some are more strict than others on appointing agents which is why I posted the questions. Can anyone give me guidance on who is better on this than others?

Also, I was wondering if there was a way to get appointed through other channels. I've got a friend that owns a pretty large IMO I'm hoping to meet with this week and I was curious if those guys have any sway with the carriers.

Shepnerd, As I tried my best to explain when you called me, different companies have different criteria. None of them will tell you anything without looking at your credit history first. They only way you will know is to submit contracts and see.
Some companies do in fact come back and ask our opinions or ask for final approval before completing the appointment process. Others don't care what we have to say about it.
I understand that you don't want to just sit and fill out a bunch of contracts and that you want to start by going to the companies that are easiest to contract with when having credit issues. Still, the problem remains that no one on this board can pull up your credit report and advise you on which companies will take you. Only the companies will say for sure.
I'm hate that you have found yourself in this situation, especially since it was the market that caused most of it and not necessarily all on yourself.