Question Regarding Commission

[Cranson]

I don't see how Nanci's current company can do anything if she moves clients to her own show when a non-compete is not in place. Even if a non-compete was in place its not easy to successfully sue.

She was a 100% commissioned producer. She cost her company next to nothing. Most companies that hire 100% commission producers usually give the option of equity in the book. I don't see how this is an ethics issue. Is she ethically bound to never leave that company?? Can she ever go after ex-clients and it not be an ethical issue? I think that's ridiculous. Also why is everyone assuming she is going to quit her job and not have everything ready? It sounds like this girl had success before going to this company and understands the business.

Good luck to you Nanci and to answer your original question, I would look at a wholesaler like AgentSecure.com or one that you can gain markets and either AOR the clients or write them with a different competitive company. Without a direct contract you are probably looking at commissions between 9-12%.

 

[bobson]

I am wondering if I bring over a policy to my new agency with an insurance company which I am not appointed with how much commission, if any, am I likely to receive?

You won't be able to bring a policy over from a company with which you are not appointed.

 

[Guest]

If the OP wants to transfer an exisitng policy to them, the company will only do it at renewal time anyway.

 

[jtm1240]

I currently work as a P & C producer for a small agency. In January I will be opening my own agency and hope to bring all of my existing clients over. It is apparent that I will not start out with all of the carrier appointments that my boss currently has. I am wondering if I bring over a policy to my new agency with an insurance company which I am not appointed with how much commission, if any, am I likely to receive?

Any other words of wisdom for this newbie agency owner are greatly appreciated...thanks!

____________________________________________________

Let's say your present agency has no problem with you leaving. From your question about receiving commission from a company you are not appointed with I get the impression, as others commenting have, that you are not ready to start your own agency.

In answer to that question; you would not even be able to place an account with that company. Commision is not the issue. In starting an agency the first thing you need to do is establish markets that align with your book of business and make certain they will give you a contract.

I am guessing that if you closely analyze the situation you will make as much money woking for the agency you are with. And you won't have the worries of an agency owner.

Good luck with whatever you decide.

jtm1240