How Does Transferring the Existing Book of Business Works?

[FL_PC]

Ok, this is where I feel like to learn something. I have not worked in the field yet but need to know this before I get into any agreement;

Lets say my agency works with A, B, and C carriers. When I move out to go open my own agency, I take my own book with me. This time I work with D and E carriers or a cluster.

At the time of policy renewal of my ex-clients, what happens? Do I have to give them a quote and transfer them to my new carriers and start from scratch or do I continue getting my commissions somehow?
What are the conditions that make me to be able to collect renewal commission?

As always; Thanks for your valuable time and responses.

 

[Guest]

you work with the company rep......

 

[medsuptage]

Its probably not going to play out like that.

You more then likely won't be aloud to keep any of your clients or renewals after you leave an agency.

You will leave with the knowledge you've gained and that's it.

You also wont be aloud to contact your clients for how ever long it says in your contract. Two years usually though.

That's pretty much what your looking at if you want someone to hold your hand and teach you how to be an insurance agent.

 

[Mattschmidt]

The only way you could get those clients underneath you again, is if you can get them to sign a New Agent of Record form...If your old agency sees alot of clients transferring, they may sniff around and try and bust for for violating your non compete clause.

 

[oicu812nbama]

Ok, this is where I feel like to learn something. I have not worked in the field yet but need to know this before I get into any agreement;

Lets say my agency works with A, B, and C carriers. When I move out to go open my own agency, I take my own book with me. This time I work with D and E carriers or a cluster.

At the time of policy renewal of my ex-clients, what happens? Do I have to give them a quote and transfer them to my new carriers and start from scratch or do I continue getting my commissions somehow?
What are the conditions that make me to be able to collect renewal commission?

As always; Thanks for your valuable time and responses.

are you working for an agent or mga? that's what is confusing.
if an agent-nothing
mga- you could take it and roll, but you need to be clear upfront about their practices

 

[FL_PC]

Thanks to you all. I forgot tho say that it is for P&C if it makes a difference, sorry about that.

you work with the company rep......

After I post this, I made a search and got this idea that ;

-If I am their agent with my name on the policy,
-If I do not have a non-compete agreement and free to contact them,
-If I get appointed by the same carriers/companies,

then I can renew their policies and get my commissions. Right?

The only way you could get those clients underneath you again, is if you can get them to sign a New Agent of Record form...If your old agency sees alot of clients transferring, they may sniff around and try and bust for for violating your non compete clause.

@ Mattschmidt: I guess they would already be under my name since they are my ex-clients. Right? I have not worked yet so I don't know.

Its probably not going to play out like that.

You more then likely won't be aloud to keep any of your clients or renewals after you leave an agency.

You will leave with the knowledge you've gained and that's it.

You also wont be aloud to contact your clients for how ever long it says in your contract. Two years usually though.

That's pretty much what your looking at if you want someone to hold your hand and teach you how to be an insurance agent.

@ medsuptage: So, it means most agents/agencies do not provide that luxury to the new, unexperienced agents. Is that right?

are you working for an agent or mga? that's what is confusing.
if an agent-nothing
mga- you could take it and roll, but you need to be clear upfront about their practices

@ oicu812nbama: For an agent in his agency. What is mga?

 

[AgencyEquity]

Ok, this is where I feel like to learn something. I have not worked in the field yet but need to know this before I get into any agreement;

Lets say my agency works with A, B, and C carriers. When I move out to go open my own agency, I take my own book with me. This time I work with D and E carriers or a cluster.

At the time of policy renewal of my ex-clients, what happens? Do I have to give them a quote and transfer them to my new carriers and start from scratch or do I continue getting my commissions somehow?
What are the conditions that make me to be able to collect renewal commission?

As always; Thanks for your valuable time and responses.

It looks like what you are saying you are a producer for an agency, when you want to break away, you may have different carriers, your quesiton will be, how do you roll this book and if you will get commissions.

As for your first question, you will of course need to re-write to a different carrier if the client agrees to it. If you have the same appointment, you will need to get a BOR from the client, but that is if you can get that same appointment. To complicate things, you need to understand your contact with your current agency, also you need to count on your clients agreeing to come with you. As far as renewal commissions, what does you agreement state?

You really need to understand your agreement and if you don't have one, you need to get one drafted and hopefully the agency you produce for will agreed to it. But reality is, they are in the drivers seat.