I have been offered a job if I get licensed. I have MANY QUESTIONS, Please Help!

[myinsurebiz]

That was before my time.

It doesn't seem that being an "association" created the problem in that suit - it was an administrative error if I read it correctly.

Tom

 

[STIBROKER]

That was before my time.

It doesn't seem that being an "association" created the problem in that suit - it was an administrative error if I read it correctly.

Tom

yea....5mill for an administrative error....first you have to understand how plans are filed with the state...either an association or as and individual plan....if filed as an association they do not fall under the DOI as far as making plan changes and pulling a plan off the market .....and this means the client does not own a policy but a certificate of coverage off a master plan that they do not own,,,,,most of these plan that I wrote in the past have fallen off because of unregulated price hikes....now on the other hand I have clients that are still on the books and getting paid on because they are on a non ass. plan.......

That was before my time.

man learns from his mistakes in the past.....as well as others....or can stick his head in the sand.....


Now lets talk about empire fire and marine....back in my day IAC was pushing Reliance Insurance Company...had 3 case's in underwritting when this went down.....
Reliance Insurance 1817-2001 — R.I.P'

Reliance Insurance 1817-2001 — R.I.P'

By Charles E. Boyle
July 23, 2001
Reliance Group Holdings (RGH), the parent company of Reliance Insurance Company (RIC), one of America's oldest insurers which traces its roots back to 1817, filed for bankruptcy protection in the Southern District of New York on June 12. The petition listed total assets of $12.598 billion and total liabilities of $12.877 billion.
The parent's fate is now in the hands of the Trustee in Bankruptcy, but the 184-year-old Pennsylvania-based company's future will be decided by Diane Koken, state insurance commissioner.
Financier Saul Steinberg and his family controlled RGH, which owns 100 percent of Reliance Financial Services Corp. (RFS). It in turn owns RIC and nine other insurance subsidiaries. All of them are included in the bankruptcy proceedings, but only RIC and its related companies are being administered by the Pennsylvania Insurance Department (PID), which obtained an "order of rehabilitation" for RIC from the Commonwealth Court on May 29. RIC isn't yet in liquidation. "We're mainly interested in protecting the assets so that policyholders can be protected as well," said Rosanne Placey, PID press secretary.
Steinberg resigned in May, but he's not forgotten. He acquired a controlling stake in RGH in 1968 through a leveraged buyout. For years the high profile corporate raider used it as the base of a financial empire that anchored his takeover attempts of Chemical Bank in 1969, and his raids on Walt Disney, Quaker Oats and other companies in the 1980s.
Unfortunately the indiscriminate issuance of debt instruments, and the mounting losses at RIC finally caught up with him. The first signs of real trouble emerged with the collapse of the Unicover pool in 1999. Reliance was heavily involved in issuing workers' compensation policies at extremely low rates, and when the pool was overwhelmed by huge losses RIC's reserves began to vanish.
As recently as 1998 the company was still profitable, earning $326 million on gross revenues of $3.4 billion. Steinberg's aggressive acquisition strategy and quest for ever higher dividend payments, however, left RIC vulnerable in the cutthroat competition for market share, which led to a deterioration in underwriting standards that eventually resulted in the unsustainable losses.
As it became more apparent that RGH and its subsidiaries were in deep financial trouble, Steinberg sought to sell the company. Leucadia National offered to buy it in May 2000 for $295 million in shares of stock, but withdrew the offer in July, as the financial condition worsened. A similar agreement to sell RIC's European operations to London's Candover Investments fell apart in September. A.M. Best began to downgrade RIC's claims paying ability from "A-" in June to "C" by August. It effectively stopped writing new or renewal business in all its lines last June, and began looking for ways to downsize.
As a result insurance regulators sought more information and assurances that the RIC entities could pay claims. In August RIC entered into an agreement with the PID, agreeing not to pay dividends or make other disbursements without its approval. After having twice strengthened its claims reserves in 2000, a September filing showed a statutory surplus of $624 million.
This surplus began to evaporate, however, as claims increased, due in part to potential claimants accelerating their demands, as RIC's shaky financial condition became more widely known. At the end of January 2001 RIC agreed to regulatory supervision by the PID. A.M. Best downgraded its claims paying ability to "E" to reflect this.
The bankruptcy filing revealed that RGH was unable to complete a full audit of its accounts for 2000, but it estimated that underwriting losses at RIC were between $1.9 and $2.2 billion, with an additional loss estimate for the first quarter of 2001 between $110 and $150 million. While investment income and the sale of various properties may mitigate the net exposure, bankruptcy reorganization became mandatory. RGH wrote off its entire investment in RIC last month, as it had indicated it planned to do, and sat down with its creditors.
The May 29 court order had already put RIC under the full control of the PID, and one of Commissioner Koken's first acts was to file suit against RGH and RFS in an attempt to recover an estimated $95 million allegedly wrongly transferred to them from RIC. She also sought an order blocking any cash disbursements from RGH, alleging that the money should go to RIC. RGH has denied the claims.
Most of RGH's major creditors approved the reorganization plan set out in the bankruptcy filing, except legendary financier Carl Icahn, who controls an estimated $69 million in RGH debt through his investment company High River LP. Under the plan the banks, which are owed around $261 million in secured debt by RFS, would receive new notes totaling around $238 million and 86 percent of the voting rights for the operation. It would in theory continue to be RIC's parent company.
RGH also owes interest and principle on about $463 million worth of bonds to various creditors, including Icahn. They would receive new notes, payable over 10 years, and would take over the company. All other shares would be cancelled. Icahn has previously indicated that he would oppose any restructuring plan that did not protect bondholders, and has yet to comment, but he isn't expected to go along with it.
The PID has engaged independent consultants to review RIC's financial condition. "In the coming weeks and months, we will use that review to develop the factual information we need to make a reasoned determination of whether to proceed with rehabilitation, or to move to liquidation," Koken stated. Placey indicated that the Department at first expected this would take around six months, "now we're sure it will take at least six months," she affirmed. The PID has so far taken no position on the bankruptcy reorganization.
Its main concern is to assure that there will be sufficient resources to satisfy the claims of policyholders, if so RIC might actually be rehabilitated, and survive in a truncated form. If not, then liquidation appears to be the only alternative, as funds would be required from other insurers who are pledged to participate in paying the claims only of insolvent companies to Pennsylvania residents or property holders through guarantee associations, established along insurance lines. Their burden is proportional to the amount of insurance each association member writes in Pennsylvania, so that large insurers like Chubb and AIG would pay more than smaller companies.
Reliance is one of three middle range commercial insurance companies currently in bankruptcy proceedings. Australia's HIH collapsed last March with an estimated $1 to $2 billion in debts. The U.K.'s Independent Insurance, after failing to raise £180 million ($252 million) in capital refinancing, closed its books to new business, and went into liquidation on June 18, when irregularities were uncovered in its claims accounts.
There are remarkable similarities. Flamboyant insurance industry mavericks - RGH's Steinberg, Independent's Michael Bright and HIH's Ray Williams - headed all three. The latter two founded their companies, and while RIC is a lot older than Steinberg, he radically changed the insurer's business operations after he acquired it in 1968 - the same year Williams founded HIH.
All three ran into trouble from over-expansion and inadequate underwriting standards, which set premiums too low. The mounting losses strained their capacity until it broke. RCI and HIH were particularly vulnerable to the low premiums, and increasingly higher claims, of workers' compensation coverage, and both wrote a lot of business in California. It was RIC's biggest market, accounting for 14 percent of premium sales. All three gained market share at the expense of larger, more established carriers, but the price they paid was ultimately too high.

 

[myinsurebiz]

STI I've never claimed to know it all AND I learn everyday from guys like you on this forum.

So the benefit of an association plan is?

Do companies use them to gain access to States that they wouldn't be able to sell into otherwise?

Are ass plans ( lol - that's funny) more affordable for the consumer versus individual plans that are filed with the DOI?

 

[STIBROKER]

So the benefit of an association plan is?

there is none and in most case I.E. mega life will end up screwing the client or pushing them off the plan in a year and a half.....

Do companies use them to gain access to States that they wouldn't be able to sell into otherwise?

no....thats a song and a dance....assurrant is ass in some states and not in others....there is only one ass plan I trust and that is GR....beware if they want to charge a $50 TO $100 FEE TO APPLY.....

Are ass plans ( lol - that's funny) more affordable for the consumer versus individual plans that are filed with the DOI?

no in most case's more expensive.....

 

[Crabcake Johnny]

I'm not seeing why some carriers file association plans. I think the DOI's make up the rules regarding these plans as they go.

An argument is they are easier to file however you can look at the CT DOI that has yet to approve the new GR and Assurant plans.

Mega had a cease and desist from WA a few years back claiming their plans didn't meet their guidelines yet when I met with the MD DOI regarding Mega they told me they didn't have to comply with the mandates since they were filed as an association.

So go figure. I've heard being filed as an association gives those carriers more latitude in filing rate increases. Odd - the carrier with the highest increase in MD is Aetna which was approved by the DOI.

Many states, for example, have not approve Assurant's CSD or healthy discount.

 

[tiburon5253]

This thread started out in the right direction, with a good subject...
Can anyone offer some advice to the new agent with a Life/Health license and looking to make good with it?

 

[JSD8675]

You have a lot of sales experience and come accross as some one who has a lot of confidence. This is good, but please don't be under the impression that this will be smooth sailing for you just because your sales skills are up there.

Selling insurances for products in the retail sector is not like selling insurances to indivduals, it's a lot harder on so many levels that it would take more time than I've got life to explain.



Is the company national, e.g., State Farm, Allstate, New York Life etc. You could always do a Goolgle search and see what comes up, Lord knows there's a lot of web space devoted to the pros/cons of any particular company. Due Dilligence is not a word, but a career help!



Simple, ask. You'll find that your job is commission based, they may front you some money for the first few months or so, but this will tend to be mearly an advance against commission and is usually repayable if you were to leave the company.



Well, given the fact that, unless you're working in the senior/retired market, most of your appointments will be in the evening on the average, I'm not sure that this is a good idea.


In California it's a 70% pass-fail exam. You don't know how much over the 70% mark you make, but if you were to fail the exam, you'd know by how many questions.

This is no exam that you can just sit down and cram for the night before. I had the benefit of attending an excellent exam course run by AD Banker. That course, along with their manual and other goodies, gave me the help I needed to pass the test the first time. The exam is not an easy one to pass, and WILL take a fair amount of "brain sweat" for you to prepare for. There's a lot more to it than you might realise.

This would depend upon which State you live in, have you looked at your States' Insurance web site for answers? Usually the questions that captive companies will ask concerning legal bits has to do with criminal activity relating with the financial sector.

Sorry to be direct but what makes you think you would or should last two years with poor-mediocre performance? This is a sales job and you have been in sales, but maybe not where your employment depended on you hitting minimum sales goals. Many places pay a salary + commission so you need to be sure that you will be kept around if you do not sell much. Nobody can say what you will make you need to discuss that with your prospective employer and if you say "I need to make X amount to pay my bills" Then make sure you know how much you will have to sell to make at least that much or stick with an hourly job. My point being is if you present yourself in this way you probably won't even get the job. Talk about your accomplishments and take words out of your vocabulary like poor and medicore. Good luck and if you want it go for it. It may take a few months to get up to speed so save some extra for your bills and you will make it.

I appreciate all the points, but I wasn't being interviewed. I wanted a low ball estimate on what I can expect to make so I can facilitate sufficient income by means of a part-time job.

Why would you think I would aim to be mediocre?

Come on, now!

Come on STI - you already know the answer.

Remember - selling Insurance isn't rocket science and requires very little hoop jumping to get started. Total expense less than $400 to get going - $129 Pre-License Course, $90 State Exam, $75 State License + $100 for 5 appointment fees.

Then do this:

#1 Start Pre-License Course - ( I did my 40 hour in less than 19 hours from my living room and passed with a 100% )

#2 Study For Test - ( I took my test one week after pre-license course.

#3 State Exam - ( schedule within 2 weeks max of pre-license )

#4 Get Sponsor Company - ( very easy )

#5 Appoint with 2 carriers in each of Life and Health - ( very easy )

#6 Study Product while awaiting appointment - ( unless immediate writing State - but still study )

#7 Get writing numbers.

#8 Create Leads.

#9 Follow Up on leads - ( Or have an assistant do it )

#10 Determine Clients Needs - Produce Quote For Client.

#11 Close Client - ( or go back to #8 ).

#12 Collect Advance - ( Big Bucks Time! ).

#13 Wait on non-advance commissions and renewals.

#14 Sell more than charge back by going back to #8.

Why make it seem more than it is STI?

It's all about the lead and being able to close the sale.

Tom

Great points, I appreciate all your info.

I wanted to add my thoughts:

It was stated that you're good at sales, not walking and chewing gum, but good at sales. Two things I noticed say differently.

"I was pretty successful with making appointments and cold calling, but ad budgets were tight, and I was squeezed out."

If you were a rock star you wold not have been squeezed out.



4. "What kind of income can I expect in the first 2 years with poor-mediocre performance (conservatively.)"

Poor-mediocre is not conservative for someone "who can sell"

Maybe this is why you are trying to make sure that you make the right decision.

Cute point, but when you're marketing a Spanish-language publication when the economy blows, and ad budgets are being cut back on ENGLISH-language publications, your chances are grim, and I was admitted so by my employer who had to trim two other staff members because of the large number of cancellations in ad contracts.

By Poor, and mediocre, again, I am trying to get a low estimate on my income so I can plan to budget through the first year or so, but no luck with you.

Thanks for your contribution, I guess.

Here's my reaction to this:

Hahahahahahahahahahahahahahahahahaha.

Did they tell you the Easter Bunny and Santa Claus were for real too?

This is one thing I'm pretty positive about. He's known the VP since the 70s, so, although I don't believe something until I see it either, I'm going to leave this as the least of my worries. Thanks for the heads up though, moonlight.

This thread started out in the right direction, with a good subject...
Can anyone offer some advice to the new agent with a Life/Health license and looking to make good with it?

I appreciate it. I post on many other forums, and, although I do appreciate some advice I have gotten on here, the remainder have been the most unhelpful, arrogant responses I've ever gotten on a thread.

Thanks Tiburon.

 

[Corporate Death]

JSD,

Who will you be working for? Look, it is entirely possible to make decent money. Way back in 1991, I got licensed and went to work for American General on one of their old Debit routes. After about 5 weeks with my Staff Mgr, I went out on my own. Not only did he write a bunch of business for me during the 5 weeks, I managed to fall into a few of my own. I was not trying. I was just wearing a suit, getting a $350/wk salary (good to me) and staying drunk on the weekends.

I ended up leaving there and went to American Income Life (dont even think about it, they are BAD karma!). Went out my first week and sold 7 policies. 6 the next week, 8 the next, and so on. It didnt occur to me that the people I was seeing would NOT want the junk I was selling. I made good money.......... til I got lazy and drunk again.

Look, it can be done. Will they be providing you leads? If so, you stand to make some nice dough if you are willing to work your butt off and know your product and how to sell.

Honestly, with your background, I'd go Indie. I just got relicensed after so many years, and I'm going out on my own. Many companies, no manager, nobody to answer to except myself and my very hungry 5 year old.

 

[STIBROKER]

This thread started out in the right direction, with a good subject...
Can anyone offer some advice to the new agent with a Life/Health license and looking to make good with it?

What are you not understanding.....

 

[Reuben]

Honestly, with your background, I'd go Indie. I just got relicensed after so many years, and I'm going out on my own. Many companies, no manager, nobody to answer to except myself and my very hungry 5 year old.

Let me ask a "Rookie" question here then, in all seriousness.

I've been interviewed by Mass. Mutual, NYL, Mutual of Omaha, and a few others, I'm still awaiting clearance of my references in the UK, I've been living in England for the past 20 years.

I've been in lurk mode here, reading assorted threads and find myself gravating towards the "Indie" arena for some reason.

My question is simply how I go about getting started, e.g., getting carriers to take me on. I've had an interest in LTC and Medicare / Health care products and would like to provide a decent level of service in this area.

I'm concerned that I don't make the mistake of hooking up with a group that will either shaft me, or, more importantly, my clients.

If this isn't the right thread for this question, perhaps someone could give me a nudge in the right direction, or PM me to let me know how I can get started?

I'm in the LA/Orange County area, and am anxious to get things going, I'm just losing patience with the captive companies to get my paperwork out of the way.