Moving an Owned Book of Business

Discussion in 'Insurance Agency Acquisition and Valuation Forum' started by 202agency1, Jun 21, 2011.

  1. 202agency1
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    202agency1 New Member

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    I always hear about producers who are employees of agencies that talk about "owning their book".

    My question is..., what happens when a producer leaves an agency and wants to take their clients with them (assuming they own the book) to another agency or to get their own appointment with the carrier? How does this work? Does the producer/agent have to get all of these clients to sign broker of record letters to the new agency? Or are all of these policies (assuming it is with the same carrier) just transferred with a producer code and basically you send letters to your clients explaining the change of agency?

    I would appreciate some detail from someone that has done this. In this case, I am talking about P&C business. Thanks!
     
  2. Guest
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    Well, first off, I hope you have a contract with the agent that states you own your clients, if not, your outta luck.

    My contracts have a built in price depending on the GWP amount. I dont know of any agents who will just give you the book, you should have to buy it from them.
     
  3. 202agency1
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    202agency1 New Member

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    Thanks RBA but you didnt really answer my question. I own a small agency and have been approached to sell and become a producer for the buyer. I don't want to turn over ownership of my book right away in case the relationship would not work out.
     
  4. Bertolinoins
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    Bertolinoins Guru

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    If you own the book of business then you can have the agent or owner of the agency sign a blanket BOR for all of your accounts (usually a list that is agreed upon) and those accounts will be rolled over to the new agency or the new agents code with that carrier. This can go smoothly if both agents are on the same page and the contracts are extremely clear or it can be really ugly if they are not.
     
  5. spearhead
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    spearhead New Member

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    unless you signed an agreement or a non compete contract, the business should be yours. not sure, just my opinion
     
  6. b61mack
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    b61mack Guru

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    well it looks like you have two issues... once you get paid for your book it is not yours anymore.... if you work for the new owner, you have to work out a new working contract.
     
  7. Guest
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    I'm still trying to wrap my mind around the fact that you are currently and agent, and want to become a producer.....kinda working backwards!
     
  8. Insurance-Guy
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    Insurance-Guy Guru

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    lol...I don't know I swear some days I wish I could go back to just producing. :)
     

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