State Farm question

Aug 31, 2008

  1. HomeService
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    Question for all you State Farm folks, either currently an agent or know of one or used to be: What is the rule on having another business-{ not at all insurance related} if you own a State Farm agency, and are the principal agent?
     
  2. Agent still waiting
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    Agent still waiting New Member

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    Keep it low key...put in spouse's name? Do you have securities license?
     
  3. HomeService
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    It's not me, it's an agent I know of, he's starting a non-profit. Maybe because it's a non-profit, maybe that's cool. He's not doing anything sinister that I know of, but I was just wondering what the official state farm view would be. Just trying to think ahead -if there would be problems in the future. Who knows, maybe on the up and up. May also be none of my business. Probably that's the case, ha ha
     
  4. fastrack1
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    fastrack1 Super Genius

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    You can have other businesses. Most agents have some sort of other financial interests (many just real estate). However, plenty have outside businesses that have nothing to do with insurance. It doesn't matter if you are securities licensed or not (although that might affect what type of business you can have. For example, you can't start a bank). The main rule is that the agency has to be your primary focus, but even that is very grey. I know agents with no outside businesses that only come to work once per week.
     
  5. frmrTICA
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    frmrTICA Expert

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    You have to disclose all outside interests and/or get permission from SFMVPC and or FINRA.

    An agent 2 years ago (former management) was fired because he did not disclose and tried the "spouses name" thing. (it goes deeper than that, but note to self, if the FBI shows up to raid your office, the outcome is not going to be good)
     
  6. fastrack1
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    fastrack1 Super Genius

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    You do have to disclose everything and have it added to your U4 if securities licensed. However, they can't do anything about it, unless you are on the new contract maybe. There is no violation of the AA97 or AA4 contract if you have another business.

    You obviously can't own a business that is a conflict of interest, such as a bank or finance company or sometimes a car lot.

    I've had a separate business for four years, completely documented and out in the open with no problems.
     
  7. xrac
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    xrac Guru

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    :D:D:D
     
    xrac, Sep 17, 2008
    #7
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