Questions About Running an Independent Agency

Discussion in 'Auto Insurance Forum' started by prateek07, Aug 8, 2017.

  1. prateek07
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    prateek07 New Member

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    I'm interested in doing something in insurance at some point so I'm curious to how things work on the agent/broker side. These questions are specific to auto and if it matters, California only. Appreciate the responses!

    1. Can an agent (independent or otherwise) only use someone's existing policy declaration to generate a bindable quote? If not, what other information would they need from the customer? I've heard using the policy dec, an agent can get a MVR and generate a quote. Is there any cost to getting the MVR?

    I read on Ezlynx that providers will give you the MVR/CLUE when you go to bind and then you can make changes. Is there an easier way of doing this?

    2. Are captive agent sales only location based or can they sell outside if they are approached by a customer?

    3. Are there any costs associated with switching someone's insurance policy (on the agent's side)?

    4. If I bundle a homeowner's policy to your existing auto insurance, do I commission on the entire premium?

    5. For how many years will the insurance provider pay commission on a customer's policy?

    6. Can the insurance provider directly poach an agent's customer? For the same company.

    7. What are average commission rates for captive agents? Can they choose to partner with independent agents to get more sales?

    8. Who collects the premiums? The insurance company or the agent? Especially the first premium.

    9. How long does it take for the insurance company to pay the commission?
     
  2. PandCagentCA
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    PandCagentCA Member

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    :idea: Captives not too sure but if anything no longer then 30-90 days after client has paid the premium. Independent side is about 30-90 days after client has paid for the most part.)

    Again these answers are not the all be all but a general answer to your questions in case someone else doesn't comment. You will always have to ask the Company or Carrier you represent to get the official answers you need. Hope this helps.
     
  3. adjusterjack
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    adjusterjack Well-Known Member

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    As noted you would need to update drivers, driving records (5-6 years), claims. Your company's application form should give you a better idea of what to ask.

    MVRs can often be obtained online by the driver for a few dollars. Insurance agencies often have access to the DMV records and can run the MVRs themselves.

    I'm not sure that I'd wait for the potentially unpleasant surprises that can generate. If your preliminary quote is going to save your prospect a healthy amount then you can explain the advantages of him/her going online and getting a current 5 year MVR. He/she can also get a CLUE report online for free (for auto and homeowners).

    Personal lines are generally direct bill from the company to the insured. There are exceptions that you will learn at some point.

    As for the first premium, I suggest getting a check from your prospect. It's a commitment to buy the policy.
     
  4. prateek07
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    prateek07 New Member

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    Thank you so much for your replies! :)
     

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