Starting my Agency While Still Working for my Employer

Ricky Bobby

New Member
2
Right now I sell insurance for an Independent Agency. I am planing on starting my own Independent agency.

Is it legal to get my agency license and start seeking appointments while I continue working at the company I work for right now?

I will not start selling anything until I leave my current job. I'm just wondering if its ok to get the ball rolling so the transition goes as smoothly as possible.

Thanks in advance for your advise.
 
Personally I don't see why not. Although there may be something in your contract where you may not be able to write for the same insurance company as your current employer for a certain time period.

I would also be very careful when it comes to leads. You don't want to show any signs of misconduct when it comes to them.

As long as you avoid conflict of interest issues I don't see an issue. Of course, I could be wrong because I'm thinking as an agent and not as an agency owner.
 
I live in California the home of the liberals. I disagree with almost everything they stand for except their stance on Non Compete Agreements, they are void here. Someone please correct me if Im wrong.
 
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I live in California the home of the liberals. I disagree with almost everything they stand for except their stance on Non Compete Agreements, they are void here. Someone please correct me if Im wrong.

I would fire you in a second if you did this without my permission. How can I know you aren't using my time and resources to build a competing agency? Obviously with permission that is completely different.

Non-competes may be, and are in most states, non-solicitation, anti-piracy and NDAs are definitely enforceable.
 
Right now I sell insurance for an Independent Agency. I am planing on starting my own Independent agency.

Is it legal to get my agency license and start seeking appointments while I continue working at the company I work for right now?

I will not start selling anything until I leave my current job. I'm just wondering if its ok to get the ball rolling so the transition goes as smoothly as possible.

Thanks in advance for your advise.

You may want to review the contract you signed when you started with the independent agency, and see what it specifically says. I dont think it's a question of legality, as munch as whether it is a breach of contract.

I predict that it's okay for you to get the agency license with the state. However, when appointed with various carriers, you may need a subagent to go along with it, and that's where you may have an issue. Your current employer may not even know that you are appointing with other carriers unless they check with the DOI. So, I guess you'd have to weigh your options and see if that's a gamble you're willing to take. If you may lose vested renewals, then Id suggest not gambling.
 
Right now I sell insurance for an Independent Agency. I am planing on starting my own Independent agency.

Is it legal to get my agency license and start seeking appointments while I continue working at the company I work for right now?

I will not start selling anything until I leave my current job. I'm just wondering if its ok to get the ball rolling so the transition goes as smoothly as possible.

Thanks in advance for your advise.

Yes it's legal. But it's a conflict of interest, which means you may get fired or sued by your employer.
 
On your own time, do all the research and preparation you need to do, nothing wrong with that. When I left my captive environment, I chatted with reps, looked into e&o, etc. So I knew what I would be doing. But I did not pull the trigger on any of it until I had officially given notice. The date I registered my agency was the same as the date I gave notice.
 
On your own time, do all the research and preparation you need to do, nothing wrong with that. When I left my captive environment, I chatted with reps, looked into e&o, etc. So I knew what I would be doing. But I did not pull the trigger on any of it until I had officially given notice. The date I registered my agency was the same as the date I gave notice.

Good solid advice here. Research ahead of time. Plan ahead of time. Sever ties an execute your plan. One thing, are your existing clients yours or theirs. If they are theirs, leave them be. The quickest way to end up in court is to take what is not yours. Some give a year and reconnect, but you have to decide if it is worth a potential suit. A small agency may not like it, but can't do anything about it.

A bigger agency can attempt to crush you as a message to other agents who may be thinking the same thing. Try and create space between you and your former employer.
 
Hey guys,

Not new to reading this site, but this is my very first post. First, I appreciate all you guys and gals who share your thoughts and give out such great advice.


I am a licensed life and health agent (several states), my license was bought for me by my current company and I sell FE and GI. I do not use my health license through them. I honestly don't know why I had to take the health part through them, maybe because it was cheaper, I guess. Nonetheless, I only sell LIFE. Of course I do have a Non Compete clause with them but as I was reading it again, it states...that I cannot provide or offer services "similar" to those offered or provided by the company.

I do not want to offer FE or GI. I want to get into Medicare Supplements and work on the weekends doing that until I might be able to do that full time from home. Since I am not in "competition" with them, do you think this would be alright?

I have been looking at a few FMO's... my worry is if I get contracted with one and get assigned to a few/several MedSupp companies would the HR department get that information and raise a red flag to what I'm doing? Or if I was to do some business with my health license will they even KNOW about it? After all, they did purchase my license. Are they privy to that type of information of my signings?

Thank you
 
It is legal for you to seek your agency license and appointments while working at another firm. The only thing that could stop you is the firm you are with now. If you signed a contract with you current firm I would read it first. Some firms have you sign a non compete clause, and if you did, you will be in violation of your contract and possibility of a lawsuit.

Good Luck and God Bless


Shouldn't he have done that BEFORE he signed it?:twitchy:
 
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