Golden Rule - direct or with key broker

arnguy

Guru
5000 Post Club
John Petrowski, I have a direct contract with GR at 15% commission. My market is mainly small group, thus, I do not write much GR. I have received an offer from a "key broker" offering a 20% contract. John, what are the pros and cons of writing GR business under a direct contract vs. under a key broker (other than the higher commission, of course)?
 
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Depending on situation but usually key broker pays you your commission not the insurance agency. So you need to trust your key broker.
 
If you're direct and your market is mainly small group then I'd say to stay put. GR will take you to 20% after 12 apps so I wouldn't risk switching to a Key Broker.
 
My rule of thumb is ALWAYS go direct - just my opinion of course otherwise you could be cutting yourself out of future bonus / trips, etc., etc., and may not "own" your own book.

Generic statement not specific to GR
 
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