Can anyone shed light on the PA rules of setting up a new insurance agency. For instance, can a licensed agent be a partner in an agency where the other partner is simply a business partner / partial owner. I am just getting started out and have an associate who would like to invest in the startup, but he has no inclination to sell or perform any fiduciary duties rather than invest in the growth and receive longer term potential profits. Thank you.
Pennsylvania Starting an Agency
- Thread starter pobrien
- Start date
- 16,876
He would just have to get his insurance license. He does not have to sell.
I don't think this is necessary. I know a couple of retail agencies that have silent non-licensed equity partners.
- 1,304
In FL partners whom are non licenced still need to get Fingerprints and Background checks done. The licensed agent is referred to as the AIC or Agent In Charge of the agency.
It should be a quick phone call to the PA DOI to get confirmation.
It should be a quick phone call to the PA DOI to get confirmation.
lovinglife
New Member
- 18
The partner does not have to be licensed if they own less than a certain percentage. However, should you pass away or become incapacitated where you are unable to run the business, they will have to obtain their license within a very short period of time. Most carriers will not pay the agency commissions without a licensed principal to operate the business. As an aside, this is very important for sole proprietors to consider with respect to their estate planning.
- Thread starter
- #7
Thank you all for your feedback. Found that in PA, like everywhere else, the producer needs license to sell. Then the LLC "business entity" needs a license. Owner of a business entity does not need license as long as he signs application stating he knows he can not sell (and he provides SSN). the waiver is actually on the PA business entity application. So best way to do this is create an LLC and get it licensed to do business. Then a licensed producer can sell for the business entity. And the investor can reap the benefits of the LLC.
lovinglife
New Member
- 18
However, the "rules" change if you pass away as a member of the LLC and there is no licensed member. Just make sure you have a contingency plan for your estate and the LLC.
- 1,304
I find humor in the level of your services lack of being able to follow the rules.
Do business with me!!!
IF you cannot read the rules to this forum and behave accordingly, what makes you think that any educated person here would even try your services?
Seems a pop from folding your ears back an pulling is in your near future.
terrenceBPO
New Member
- 2
I find humor in the level of your services lack of being able to follow the rules.
Do business with me!!!
IF you cannot read the rules to this forum and behave accordingly, what makes you think that any educated person here would even try your services?
Seems a pop from folding your ears back an pulling is in your near future.
Thank you for reminding, I will delete this post.
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