Some Advice For Insurance Business Please

[JW1]

I am looking to enter the insurance business. I have plenty of cash on hand. I will be licensed in lah and pc shortly. Yes, I am another mortgage guy looking to get into the insurance business. I know how to sell and can invest in marketing.
What I can't understand is.
1. why would anyone register as an agent instead of a broker.
2. why would someone use a service like health choice one and such, rather than get appointed individually, and if there is an advantage to the service, what does it cost?

 

[STIBROKER]

Re: Some Advice Please

and what state are you in.......

 

[JW1]

Re: Some Advice Please

Right now, NY, NJ, CT

 

[Frank Stastny]

Re: Some Advice Please

What I can't understand is.
1. why would anyone register as an agent instead of a broker.
2. why would someone use a service like health choice one and such, rather than get appointed individually, and if there is an advantage to the service, what does it cost?

In Missouri I am registered as an "agent". I promote myself as an "agent" although I am independent and represent several different companies the way you may consider a "broker" doing. Those terms, agent and broker, have become so convoluted that today no one really knows the difference.

Most Med Supp companies today will not contract agents directly with the company, an agent just about has to go through a marketer. Also, if an agent is contracted directly with the company, usually the best contract an agent can get is a street level commission. There are marketers, of which I am one, that will give agents a better commission than that.

It can definitely work to the agent's advantage in some cases.

 

[JW1]

Re: Some Advice Please

when you say contracted, is that the same as "appointed"
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and it sounds like you are saying not all commission schedules are the same for each appointed agent

 

[Frank Stastny]

Re: Some Advice Please

when you say contracted, is that the same as "appointed"
- - - - - - - - - - - - - - - - - -
and it sounds like you are saying not all commission schedules are the same for each appointed agent

Contracted is the same as "appointed".

No, not every agent is offered the same percent of commission by those offering contracts.

 

[ALG]

Re: Some Advice Please

With any career change education is your first investment. With Insurance you must focus on a few products that you you can understand easily and can provide a service to your client. Maintain good records and follow up information and a constant contact system.

 

[JW1]

Re: Some Advice Please

thank you for the advice, I am in the process of getting the outline, structure of the business. In NY you can submit your license application to the state as either a broker or an agent. What I did was get permission from the state insurance department to use a business name, I then got it set up as an llc and sent in license applications in the name of the business and myself individually licensed as an agent. I understand the importance of knowing your product. The next step will be getting appointments.

 

[Frank Stastny]

Re: Some Advice Please

With any career change education is your first investment. With Insurance you must focus on a few products that you you can understand easily and can provide a service to your client. Maintain good records and follow up information and a constant contact system.

Excellent advice.

The biggest mistake I see new agents make is that they try to be all things to all people. They should find a product, become an expert in that product before they try to offer other products.