Some Basic Real-life Concepts and Questions

[ahl77]

Hi folks,

As a newbie I'm seeing here some concepts and terms that I'm not familiar with and I haven't been able to find clear straight definitions.

Cluster: What is a cluster? I think I have an idea by reading but I prefer to get some responses before I expose it, to avoid adding noise.

Binding authority: I thought that by being licensed and working for an agency that has appointments you were automatically authorized to bind. Can someone explain the multiple ways a new agent can obtain "binding authority"?

These are just two for now, I'm sure I will find more in my readings through the forum.

Thank you in advance

 

[Pete Cormie]

Cluster is the term used to identify a group of independent agents aligned for purchasing and contracting (commission) power. Insurance vendors (CRM, Leads, etc.) give volume discounts to cluster memeber agencies. Insurance companies give commission deals and enhanced profit sharing to member agencies.
Binding Authority is granted by the insurance company to an agent. It is in regards to binding the company to indemnify a loss, subject to the terms and conditions of the issued policy. It authorizes you to issue a binder of insurance.