Rolling Book Over

[Guest]

Re: "rolling Book Over"

WOW, this could turn into a cluster......

I never heard of a sub owning his book, I have seen where the sub can buy it when they leave, but not owning it....

 

[iiinycboi]

Re: "rolling Book Over"

Yeah so this guy could be pulling my leg? Or he is just selling me a list of names

 

[TwiLight]

Re: "rolling Book Over"

Usually in this situation the Sub only owns the expiration date and the agent owns the business with a take the client with him agreement. Typical of many Cluster arrangements.

Your deal would have to be with the actual Agent for a simple transfer or you will have to request that the book be non-renewed in current agency and rewritten into yours. Plus you will have to notify the customers of the transfer/roll so that they do not panic when the non-renewals are received.

This type of purchase does not have the kind of multiplier for revenue stream as you would buying an established agency and transferring to your agency. I personally would not pay more than 6 months of revenue and it would be paid in installments over 12 months. I would also insist on a non-compete with the sub and the agent or you will be flushing your money down the drain.

 

[Josh]

Re: "rolling Book Over"

Yeah so this guy could be pulling my leg? Or he is just selling me a list of names

Only knowing what you told me, I'd forget about it. The guy might mean well and just not understand how it works.

 

[djs]

Re: "rolling Book Over"

The agent may allow the transfer, if you keep them under him as a sub agent. I can't see him letting them go otherwise.

Basically, as a sub-agent, you might own the revenue stream, might even 'own' the client meaning you can re-write the policy to a different carrier. You virtually never own the policy though, meaning the carrier won't do the transfer for you because the agent of record won't release them.

You would have to talk to the agent involved, make sure he is okay with this.

Dan

 

[Guest]

Put it this way, I dont think there is ANYONE on this board that would allow a sub to OWN their book.

If that sub quit or wanted to become a principal, the sub could then buy his/her book.

 

[iiinycboi]

oh, well it seems like its not worth my investment if i cant even get them off the agent.

Maybe i can work out a lower price and just take it as a new sub agent and take it from there.

I just think if i have to send every client a BOR change someone will start asking questions and end up shopping else where.

 

[iiinycboi]

I dont think he wants to work anymore, he wants to sell his book and then retire fully and not have to do any servicing.

 

[Sales71]

How about have him do the BOR request for you once you get it back and you know it's good then and only then pay him per policy.

It's a little confusing but it might be worth it.

 

[Soaringagent]

Is the sub a cluster agent?