Insurance Agent vs. Insurance Broker

[CHUMPS FROM OXFORD]

Since we're talking about CLU, BS, IBM etc...I thought of this song from childhood.

Click below or your liver will be mine!


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[Frank Stastny]

Since we're talking about CLU, BS, IBM etc...I thought of this song from childhood.

Click below or your liver will be mine!

YouTube - Harvey And Sheila - Allan Sherman
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YouTube - When I Was A Lad - Allan Sherman

Wino's liver was shot years ago, he would probably willing give it to you.

 

[WinoBlues]

Wino's liver was shot years ago, he would probably willing give it to you.

I got the first one in a jar, somewhere in the garage. That was when I was WinoYellow.
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[Frank Stastny]

My point was, that most prospects have no clue what "CLU RHU ChFC AAI LUTCF" means. They have a pretty good idea what "since 1969" means, without education.

Not sure how designations show honesty or ethics. Or the lack of.

There is a certain amount of BS in the early part of the relationship. Nice home, nice dog, pleasure to meet you, smok'n rack etc.. I am not saying that BS should be the basis of the business relationship, However, It is an early part of the sales process. I joke and BS with many of my clients. More with some, less with others.

I am not debating designations. My original comment was that in my opinion the length of time you have been in business may impress prospects more than a bunch of letters they have no idea of the meaning. On business cards, less is more. Again, in my opinion.

Like you, I take a more laid back, conversational approach to selling than guys like RFNaples do. There is nothing wrong with his approach, I just don't feel that it works well with the prospects I'm talking to.

I only work the senior market now and I have found that the approach I use, for me, plays much better with them than the "all business" approach.

My knowledge and experience selling Med Supps is what earns me the trust with my prospects and clients. No amount of acronyms behind an agents name is going to say "honesty" or "ethics".

Just like degrees do not indicate intelligence, well educated yes, intelligent not necessarily. Some of the most successful agents I have known didn't set foot in a college. They are personable, out going, know how to make people feel comfortable, extremely knowledgeable about their product and know how to explain it so people know what they are talking about. They use logic and common sense.

 

[RFNAPLES]

Like you, I take a more laid back, conversational approach to selling than guys like RFNaples do. There is nothing wrong with his approach, I just don't feel that it works well with the prospects I'm talking to.

I only work the senior market now and I have found that the approach I use, for me, plays much better with them than the "all business" approach.

My knowledge and experience selling Med Supps is what earns me the trust with my prospects and clients. No amount of acronyms behind an agents name is going to say "honesty" or "ethics".

Just like degrees do not indicate intelligence, well educated yes, intelligent not necessarily. Some of the most successful agents I have known didn't set foot in a college. They are personable, out going, know how to make people feel comfortable, extremely knowledgeable about their product and know how to explain it so people know what they are talking about. They use logic and common sense.

Frank we have never met. My sales methods are not "all business," I use a conversational approach free of bullshit and lies. I have not suggested that agents without degrees or designations couldn't be successful nor that all with same are successful.

 

[Frank Stastny]

Frank we have never met. My sales methods are not "all business," I use a conversational approach free of bullshit and lies. I have not suggested that agents without degrees or designations couldn't be successful nor that all with same are successful.

Sorry Robert,

I didn't mean to sound like I was busting your ass, I was just agreeing with my buddy Wino. I'm pretty unconventional in the way I sell insurance compared to methods others use. I also have no use for agents who try to bullshit their way to a sale using an emotional approach riddled with lies.

Apparently I screwed up in the way I said what I intended to convey. It wasn't intentional. First mistake this year.

 

[RFNAPLES]

Sorry Robert,

I didn't mean to sound like I was busting your ass, I was just agreeing with my buddy Wino. I'm pretty unconventional in the way I sell insurance compared to methods others use. I also have no use for agents who try to bullshit their way to a sale using an emotional approach riddled with lies.

Apparently I screwed up in the way I said what I intended to convey. It wasn't intentional. First mistake this year.

Thanks Frank, I agree with Wino too--experience matters. But new agents will find that education and training will help them gain that experience.

 

[Dudley76]

Thats incorrect. At least in TX anyway. There is no difference in licensing. We all have the same license.

Actually, it IS correct but as I am learning, it depends on what state you live in (New York in my case).

Another difference between an "Agent" license and a "Broker" license is that agents have binding authority with carriers, where as brokers do not. That's why brokers depend on retail and/or general agents to place business, since they have no direct carrier access.

A broker's license is much more powerful, since they can work with multiple GA's/RA's to get the carriers they need access to. Moreover, broker's can (depending on the agency) outsource client servicing (trading off a portion of the commission to the agent) which frees up their time to do other things (in my case, write and service my health groups as a LA&H agent).

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In PA there is no distintion between the two so the DOI referst to the license as a "Producer's License." Some years ago there was a distinction, but that has been eliminated.

Does this mean that anyone who holds a P&C producer license in PA has binding authority with the carriers?

I hold a home P&C broker's license in NY, and a non-resident P&C producer license in PA, and was wondering why I could not find any retail/general agency in PA who would contract with me as a sub-producer. If my guess is correct, that means that every licensed individual producer in PA has the ability to bind coverage correct?

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Interesting, so if I understand this correctly, the broker works for the insured, the agent works for the insurance company. This is somewhat the old definition, which makes sense.

It is generally not the public perception though. In this scenerio, the broker is not appointed with the insurance company, but works with an agent (or direct) to place the business that suits the clients needs. As such, a broker doesn't generally have any sort of binding authority.

I'm not sure what the real implementation of this is in New York. Do people still use the term broker when they have an agents license?

Dan

You are definitely understanding the differences.

In New York, I hold a P&C brokers license, and a LA&H agent license. On the LA&H side of the business, I have binding authority with all of the carriers (not captive), and place business directly with the carriers. On the P&C broker side of the business, I rely on retail and/or general agents to place business, as I have no binding authority with the carriers.