Series 6, 63, and 7 Licenses with Bankruptcy

[DHK]

What is an "OP"

Original Poster
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If you're really looking to work in the P&C side, I don't have anything to tell you as I have nearly no experience there.

On the life side, companies like New York Life may take you with ONE BK. Other career shops may be similar.

I'm thinking that if you've ever had a BK and working in the P&C side collecting premiums directly on behalf of clients, it could be an issue.

This is not the case on the life & securities side. Checks are payable to the institution and not the agent/agency.

 

[DHK]

All the compliance headaches and hassles are in securities. But that's my opinion (an opinion shared by many on the board).

If you wanted to focus more on life/securities and not do P&C, you may find it easier to get with other life insurance career shops, than with P&C shops.

Again, I don't know enough on P&C to advise here. But if you didn't want to do auto/home, it would be the move I'd make.

 

[DHK]

I'm an independent life agent who used to be a registered representative (Series 7) and registered investment advisor (RIA - Series 66).
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One reason you may want to consider avoiding auto: If your client has a problem with their policy or a claim being paid, they may move the entire relationship to someone else.

It's a lot of service & maintenance. Once you get into the "thick of thin things", it's awfully hard to work on the more profitable activities and products.

Again, my own observation from someone who has never been a P&C agent.

 

[DHK]

Lots of questions now!

No, I don't just sell life. In fact, NO life insurance agent ever just "sells life".

Life insurance is the solution to financial problems. I sell solutions.

What problems? Death, disability, retirement.

What products? Life, Disability, LTC, Annuities are the products.

What companies do I write? A few. (When you're independent, you choose who you want to work with.)

Do I get paid annually? The correct term is "annualized" commissions. This is when you get paid the annual commission for a monthly sale. Some companies have offered me annualized and others are "as earned".

I get my clients from prospecting - typically at businesses and other worksites.

Once you know what you're GOOD at, and is most PROFITABLE for you to work with (both time and money profitability), then you work to become a SPECIALIST in those areas.

With Farmers, (and I interviewed with them about 2 years ago), they would have you think that they can do EVERYTHING under the sun and do it well. Bull.

Farmers is a P&C shop. They're mediocre life producers. They're mediocre financial planners. Go to Farmers to build a P&C book of business. Go somewhere else to be a life insurance agent &/or financial planner.

If they think you can "do it all and do it well", they're giving you a recruiting pitch. Know where each company has their niche.

Jacks of all trades are still masters of none.
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You could probably benefit from my rant & guidance for new life agents. It could be equally applicable in the P&C world you may be embarking on:

Guidance for New Life Agents

 

[DHK]

Insurance is a job where you CREATE your own work. It's not handed to you.

You will be paid in direct proportion to your skill in creating your work. This means prospecting, presenting and following up.

 

[Guest]

I understand that, but Farmers pays 10% on auto policies and 20% on home. The commission sheet that lists all the percentages paid on different policies is much less than 10.....so what company can I turn to and make 12 or higher?

On renewals, Farmers pays 10% on auto and only 14% on homes.

I now make 15% from every carrier I have......new and renewals.

over a 20 year career, that is $984,000 MORE I make, I actually just went thru a presentation that showed us this. This was based on a certain dollar premium, with a 2% rate increase and a certain number of policies.....

 

[Guest]

Zig, read the posts closely, yes, on NEW business on homes, Farmers does pay 20%, but on renewals (where most of your money will be made) is only 14%

To put it bluntly, you will not receive 15% commission unless you join a cluster organization, and most likely, no cluster will accept you without experience.

I looked at that website and there is no way you could make any money with those low commissions.

You will get sub standard carriers on your own, but no preferred carrier will even talk to you without a substantial book of business.

I explained to you before but you dont listen, you need to become a producer under another IA agent, or go to a captive company for a few years so they will hopefully train you. As an IA, these carriers will not train you.

You cannot call Hartford, travelers, metlife etc. being new to the business and expect them to add you as an agent. When i went IA, i called them all and none would even talk to me much less call me back, I had no choice but to join SIAA, and I do not regret one second of it.

Zig, we are trying to help you, tell you how it is and you arent listening, you think it is as simple as calling Hartford and saying I want to be an agent for you, it isnt, you generally need 3 years of loss ratio history, GWP numbers, growth numbers, business plan, etc.

Honestly, I have been told this by many IA's, your best option is to go to a captive company for 3-5 years, let them train you, learn the business and then quit and go IA....and I agree with this, especially after being on both sides.

When a claim, especially a MAJOR claim happens, you better know what to do, who to call, how to help. When a claim happens, that is when the client needs a good agent the most. I myself, get pretty involved in claims with my clients, answering questions, making sure they arent confused. Remember, they know and trust YOU, they dont know the claims adjuster. When the big claims happen, you better hope you wrote the policy correctly and that they are covered they way they needed to be.

I had a client who's kid was involved in a roll over in someone elses car, broke her hip in three places, do you know what coeverages will pay? Do you know how to answer questions when they call you at 9 PM crying because they dont know what the future will hold and how they think this will bankrupt them due to medical bills?

There is ALOT more than just selling a policy.

I am not trying to tell you not to get in this business, but to make sure you make the right decision, and I will say with 1000% certainty that Farmers is a wrong decision. Most of my feelings comes down to how they treat the agents, and with your BK, I am 100% certain they wont accept you.

When i started at Farmers, my DM was a good guy and a good mentor, but then the company changed, now they want as many agents as possible and see what ever sticks. a DM's job now is simply recruiting, they dont help you like they used to. The projections they give you are virtually un-obtainable. Some will also depend on what area you are in. In mY area, if a client has 2 cars, with certainty, I can save them at least $750 a year GUARENTEED, with higher coverages and lower deductibles also.

Farmers USED to be a good company but now they arent.

Try sitting in front of a client and trying to sell a product that is $100 MORE a month than they are paying.

Also, Just my opinion, they force you to sell life insurance and the financial products, but my opinion is very few people can be good at selling that many products and being very good and compentent at it, there is simply way too much to know. Farmers will teach you how to sell, but not much about the products, they just want you to sell sell sell.

As I said before, get various company quotes in your area and compare the rates, you will be amazed at how much they vary. Then talk to the agents in person about becoming an agent with that company. Then form your own opinions.

Drive around town and count how many Farmers offices there are compared to other insurance companies.... When I was at Farmers, we used to joke that our biggest competition was the other Farmers agent because there are so many of them!

My DM had a prosepct agent come to him, applied, went thru the process and was denied because he had a BK, so my DM asked me to put him on as a producer, so I did, he failed in 4 months....So I KNOW they will not accept a BK.
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ZIG, also, I will add, The way Farmers gives out their subsidy......they have impossible goals to hit to waive the payback of the subsidy, you will owe, I did and 99% of people will owe.

My suggestion, try Country Companies or Liberty Mutual, I believe they have a salary with a smaller commission, that will help prevent you from gettin in Debt.

 

[zoopie]

Secondly, I would run as fast as I can from Farmers,

check out the thread called "Interior Home Inspections" under the "Homeowners Insurance" forum. it offers some interesting insight into being a Farmers agent.

i second RBA's advice, unless this is your only option and you're somehow using it as a stepping stone

 

[BTFuzz]

Hey Red...do your companies that pay well provide good contingencies? I know some companies give much more than others for profitable biz.

 

[xrac]

Zig, read the posts closely, yes, on NEW business on homes, Farmers does pay 20%, but on renewals (where most of your money will be made) is only 14%

To put it bluntly, you will not receive 15% commission unless you join a cluster organization, and most likely, no cluster will accept you without experience.

I looked at that website and there is no way you could make any money with those low commissions.

You will get sub standard carriers on your own, but no preferred carrier will even talk to you without a substantial book of business.

I explained to you before but you dont listen, you need to become a producer under another IA agent, or go to a captive company for a few years so they will hopefully train you. As an IA, these carriers will not train you.

You cannot call Hartford, travelers, metlife etc. being new to the business and expect them to add you as an agent. When i went IA, i called them all and none would even talk to me much less call me back, I had no choice but to join SIAA, and I do not regret one second of it.

Zig, we are trying to help you, tell you how it is and you arent listening, you think it is as simple as calling Hartford and saying I want to be an agent for you, it isnt, you generally need 3 years of loss ratio history, GWP numbers, growth numbers, business plan, etc.

Honestly, I have been told this by many IA's, your best option is to go to a captive company for 3-5 years, let them train you, learn the business and then quit and go IA....and I agree with this, especially after being on both sides.

When a claim, especially a MAJOR claim happens, you better know what to do, who to call, how to help. When a claim happens, that is when the client needs a good agent the most. I myself, get pretty involved in claims with my clients, answering questions, making sure they arent confused. Remember, they know and trust YOU, they dont know the claims adjuster. When the big claims happen, you better hope you wrote the policy correctly and that they are covered they way they needed to be.

I had a client who's kid was involved in a roll over in someone elses car, broke her hip in three places, do you know what coeverages will pay? Do you know how to answer questions when they call you at 9 PM crying because they dont know what the future will hold and how they think this will bankrupt them due to medical bills?

There is ALOT more than just selling a policy.

I am not trying to tell you not to get in this business, but to make sure you make the right decision, and I will say with 1000% certainty that Farmers is a wrong decision. Most of my feelings comes down to how they treat the agents, and with your BK, I am 100% certain they wont accept you.

When i started at Farmers, my DM was a good guy and a good mentor, but then the company changed, now they want as many agents as possible and see what ever sticks. a DM's job now is simply recruiting, they dont help you like they used to. The projections they give you are virtually un-obtainable. Some will also depend on what area you are in. In mY area, if a client has 2 cars, with certainty, I can save them at least $750 a year GUARENTEED, with higher coverages and lower deductibles also.

Farmers USED to be a good company but now they arent.

Try sitting in front of a client and trying to sell a product that is $100 MORE a month than they are paying.

Also, Just my opinion, they force you to sell life insurance and the financial products, but my opinion is very few people can be good at selling that many products and being very good and compentent at it, there is simply way too much to know. Farmers will teach you how to sell, but not much about the products, they just want you to sell sell sell.

As I said before, get various company quotes in your area and compare the rates, you will be amazed at how much they vary. Then talk to the agents in person about becoming an agent with that company. Then form your own opinions.

Drive around town and count how many Farmers offices there are compared to other insurance companies.... When I was at Farmers, we used to joke that our biggest competition was the other Farmers agent because there are so many of them!

My DM had a prosepct agent come to him, applied, went thru the process and was denied because he had a BK, so my DM asked me to put him on as a producer, so I did, he failed in 4 months....So I KNOW they will not accept a BK.
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ZIG, also, I will add, The way Farmers gives out their subsidy......they have impossible goals to hit to waive the payback of the subsidy, you will owe, I did and 99% of people will owe.

My suggestion, try Country Companies or Liberty Mutual, I believe they have a salary with a smaller commission, that will help prevent you from gettin in Debt.

Great post on Farmers. Must read for all prospective Farmers agents.
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Red,.....What is a Country Company?.....

My thought is that Country Companies is Illinois's version of Farm Bureau Insurance. I don't iknow if that is right or wrong.

COUNTRY Financial | auto insurance | home insurance | life insurance | investments