State Farm New Agent Contract / Brainwashing / Details

[insurance1822]

So I have an acquaintance who's got sucked into the State Farm trap. His mother was a SF agent from back in the stone ages when SF was one of the few places to buy insurance & she had a good location so built a big book over the 38 years. He's signing onto the new contract to start a SCRATCH OFFICE & I've been pounding him w/ how stupid this is yet he's legitimately brainwashed by State FARM.

Every referral I get, I have been letting him quote to see how bad their rates are & how they homeowner's policies don't provide the same features & benefits. He hasn't been me on 1 quote, yet he 100% believes people would use SF just for the name & the fact that they have a local agent that cares!! (like us IA's don't care about our clients.) He's so brainwashed it's scary.

He's investing his own money to fund the operation in the beginning. He gets a monthly bonus based off of production. If he writes 17k/month (not annualizing the auto..) he gets an 11k/month bonus. That bonus scales down based off how much premium he writes. He gets NOTHING from SF. No leads..no accounts..nothing. He has been in another agent's office for like 9 months & he has no clue about what it takes to generate business. It takes time to build a network, but he's blind.

How can SF setup somebody like this!? I mean he has NO IDEA what it's going to be like in the field. He will be forced to also write life, bank & financial products to keep his contract. It's just so rotten to throw somebody into this business without them having a fair understanding of what they're getting into.

I just ran into an account that SF can't handle (it's a 3MM home w/ a 10MM umbrella..) and I showed him my Chubb quote & explained this particular client doesn't give a sh*t about the smoke & mirrors of "well state farm is the biggest company out there so they'll want the name brand."

He literally said "Who's Chubb? I have never heard of them & I'd never want my home insured with some small carrier like that."

BRAINWASHED. YOU STATE FARM RECRUITERS DESERVE A PRISON SENTENCE

 

[cottonland]

Sometimes you just have to learn the hard way. SMH

 

[abkclauren]

So I have an acquaintance who's got sucked into the State Farm trap. His mother was a SF agent from back in the stone ages when SF was one of the few places to buy insurance & she had a good location so built a big book over the 38 years. He's signing onto the new contract to start a SCRATCH OFFICE & I've been pounding him w/ how stupid this is yet he's legitimately brainwashed by State FARM.

Every referral I get, I have been letting him quote to see how bad their rates are & how they homeowner's policies don't provide the same features & benefits. He hasn't been me on 1 quote, yet he 100% believes people would use SF just for the name & the fact that they have a local agent that cares!! (like us IA's don't care about our clients.) He's so brainwashed it's scary.

He's investing his own money to fund the operation in the beginning. He gets a monthly bonus based off of production. If he writes 17k/month (not annualizing the auto..) he gets an 11k/month bonus. That bonus scales down based off how much premium he writes. He gets NOTHING from SF. No leads..no accounts..nothing. He has been in another agent's office for like 9 months & he has no clue about what it takes to generate business. It takes time to build a network, but he's blind.

How can SF setup somebody like this!? I mean he has NO IDEA what it's going to be like in the field. He will be forced to also write life, bank & financial products to keep his contract. It's just so rotten to throw somebody into this business without them having a fair understanding of what they're getting into.

I just ran into an account that SF can't handle (it's a 3MM home w/ a 10MM umbrella..) and I showed him my Chubb quote & explained this particular client doesn't give a sh*t about the smoke & mirrors of "well state farm is the biggest company out there so they'll want the name brand."

He literally said "Who's Chubb? I have never heard of them & I'd never want my home insured with some small carrier like that."

BRAINWASHED. YOU STATE FARM RECRUITERS DESERVE A PRISON SENTENCE

Wow. I'm in GA and i know their rates here are asinine. I just assume their agents sold their soul to write business and pay their bills every month lol no way I'd ever become a SF agent, CSR, whatever ain't happening.

And omg he starts from scratch?

 

[xrac]

You can't help someone like that. When you try to advise them otherwise they think you are jealous. They will not listen until they feel the pain.

 

[indienoise]

And he will feel it, that much is a fact. Some people just have to learn the hard way.

 

[xrac]

Just saw in the local paper where a SF agent I know after ten years has left SF to join an Indy agency. HMmm! WOnder why?????!!!!!!!!!

 

[Josh]

My father-in-law talked to me about getting started with them and I strongly advised against it, but they gave him a starting pay and a lot of support; he's actually doing really well with it. Different strokes.

 

[insurance1822]

They will be constantly forced to write financial products that are sub par, their P&C rates are terrible etc. I'm not sure what "doing well" is per say...but I think it's sufficient to say whatever you make as a State Farm agent, you'll make 3x as an IA.

 

[Josh]

They will be constantly forced to write financial products that are sub par, their P&C rates are terrible etc. I'm not sure what "doing well" is per say...but I think it's sufficient to say whatever you make as a State Farm agent, you'll make 3x as an IA.

You're certainly a passionate individual, but your truth isn't the only truth. The rates may not be great on their products, but they do insure a lot of folks that otherwise may not have life insurance. As much as you're dogging on how much a personal relationship with a big brand is, it does matter to people.

There are also a lot of agents that need the support and structure of a big captive. My father-in-law wouldn't be making a dime as an Indy because he never would have gotten started. SF also invested a fortune in getting him started and I'm not aware of any programs that will put cash into an Indy agent like that.

Different strokes.

 

[insurance1822]

So if you don't mind me asking, how does your father in law generate business? How much does he write? What's his book size? Again, many captives (Allstate, *Erie, Nationwide, State Farm, Farmers..) essentially "invest" money by giving bonus commissions the 1st 3 years to get the agency on it's feet. But then at their garbage commission structure it's like permanently enslaving them for the rest of their lives.

When I was a captive producer it was like a living hell. I just have such a bad taste in my mouth for it. In addition (in my State..) SF has the WORST home insurance policy on the market. This guy runs his mouth about "giving the best service out there" but I firmly believe it's IMPOSSIBLE to do that b/c with only 1 carrier there's an obvious conflict of interest for the agent.

And a big brand mattering to people? THAT IS SO RIDICULOUS & UNETHICAL. It only matters b/c the general populous are stupid & correlate name recognition w/ "good." In reality (in my state..) they are purchasing THE WORST homeowner's insurance coverage on the market!!!!!!!!!!!!!!!! AND HOW DOES THAT AGENT ALLOW THIS? HOW DO YOU LOOK PEOPLE IN THE EYE KNOWING YOU'RE SELLING THEM GARBAGE? Lets get specific..

1.) State Farms' water backup endorsement maxes at 10k. Their endorsement reads like a flood policy in that they don't cover damage to contents or finish work. HOW DO YOU LOOK SOMEBODY IN THE EYE W/ A BEAUTIFULLY FINISHED BASEMENT & SELL THEM YOUR SH*T PRODUCT? When that sump pump backs up you could be talking 30k+ in losses that WON'T BE COVERED!

2.) State Farm's sinkhole endorsement only pays for damage done to the home & there's no coverage to fill the hole (which is a majority of the costs.) At least 2 of my carriers allow for land restoration coverage. This could ruin people financially. How do you knowingly sell an inferior product? We are dealing w/ people's LIVE'S here.

3.) State Farm's minimum deductible on home insurance could be 1%...how is that in peoples best interest?

4.) Their mold limit caps at 5k (as do most..) but at least my carrier's can endorse more.

5.) They withhold depreciation on ALL LOSSES until the insured comes out of pocket. Many of my carriers will endorse that way or don't enforce that for certain losses.

6.) State Farm carries 2% hurricane deductibles - DO YOU KNOW HOW MANY PEOPLE DON'T HAVE THAT MONEY?

7.) State Farm doesn't provide RC for detached structures. At least my carriers will endorse it

8.) State Farms' manufactured homes can't get RC if older then 10 years old.

So these SF agents who are selling these policies under the disguise of "we are a big name" are CROOKS. In addition, my *** acquaintance doesn't even know all this. Lets not even GET STARTED on their life insurance products that are just absolute crap when compared to Guardian, Mass, Met, NW Mutual etc.

They are selling GARBAGE products under the guise of "big name = good coverage" and it's just WRONG. I will be the 1st person to throw jerks out of my office & cast stones when necessary but I WILL NOT LIE to people and I WILL NOT fail to disclose coverage gaps w/ a carrier (b/c I don't have to.)

I have come to find out that many of these SF agents are so drunk on the koolaid & inexperienced w/ reading policy forms & endorsements that they don't even know this stuff.

END RANT.