Starting Your Own Insurance Company

[Briefcaseboy]

I read where W.Clement Stone borrowed $100.00 from his mother and started his own insurance company. Of course this was during the 20's or 30's. I'm not sure what the company name is today, but he became a multi millionaire. A young man ventured out on his own and started Heartland National and Jack London started Lincoln Heritage selling door to door. I am just curious how it is done. How much money would have to be held in reserve to pay claims ?

 

[Josh]

That varies by state and license type.

 

[xrac]

Stone started Combined Insurance Company of America. I am sure that it is much harder to start and insurance company today than in 1919.

 

[albatrosspk]

Back in the 20s and 30s, the market was all different, so you can't expect to become a multi millionaire these days just having $100 in the pocket.

 

[xrac]

Back in the 20s and 30s, the market was all different, so you can't expect to become a multi millionaire these days just having $100 in the pocket.

Unless you come up with an idea like Facebook.

 

[Mark]

You have to have a lot of money.

IT is not an easy thing to do.

I was told that Texas is the best state to be in if you are a company.

 

[Crabcake Johnny]

You can start something like AIM for probably $60.

 

[STIBROKER]

I was told that Texas is the best state to be in if you are a company.

No it's not....it sucks.....really......now Calie is the place to be.....

 

[somarco]

TX and AZ were good places at one time. Lax laws, nominal reserve requirements. Offshore captives also have appeal depending on the market and product.