Submitting business as a condition of contracting.

[MKAGENT]

Some companies require life insurance to be sold prior to appointment and contracting.

It seems like putting the cart before the horse.

"Find some people to sell insurance to other than yourself or your family to get contracted."

I seem to recall in Florida that you could not transact business without having a carrier appointment.

I'm now in CA and this has come up as a condition of contract.

Sell 2 lives, $2,500 premium to get the TAP contract with MMGA.

Why do these companies expect you to sell their insurance without being appointed?

Is this just a common mutual company prerequisite?

 

[adjusterjack]

I would be looking for another company.

 

[goillini52]

Some companies require life insurance to be sold prior to appointment and contracting.

It seems like putting the cart before the horse.

"Find some people to sell insurance to other than yourself or your family to get contracted."

I seem to recall in Florida that you could not transact business without having a carrier appointment.

I'm now in CA and this has come up as a condition of contract.

Sell 2 lives, $2,500 premium to get the TAP contract with MMGA.

Why do these companies expect you to sell their insurance without being appointed?

Is this just a common mutual company prerequisite?

Many companies have Just In Time contracts. They don't do the background check until you submit a piece of business.

 

[Lee Vena]

I am not on the retail side, always been a group rep. Can tell you that I have require this all the time, with the exception of a few states we cannot. No reason for a carrier to incur expenses and resources until they write business.

 

[DHK]

I remember this to be a requirement for Metlife, back when Metlife had their own career agency field force.

Not uncommon.

 

[marindependent]

Why do these companies expect you to sell their insurance without being appointed?

Totally depends on the line of insurance and possibly on the state. With life insurance in California this is fairly common. I think most states are similar.

I would be looking for another company.

For life insurance, you might be looking for a long long time.

They don't do the background check until you submit a piece of business.

Exactly

Lots of agents are appointed with multiple life insurers. It costs money to run the appointment process and to keep you on the books. Similar reason that life insurers un appoint you when you are not selling anything.

 

[Allen Trent]

Some companies require life insurance to be sold prior to appointment and contracting.

It seems like putting the cart before the horse.

"Find some people to sell insurance to other than yourself or your family to get contracted."

I seem to recall in Florida that you could not transact business without having a carrier appointment.

I'm now in CA and this has come up as a condition of contract.

Sell 2 lives, $2,500 premium to get the TAP contract with MMGA.

Why do these companies expect you to sell their insurance without being appointed?

Is this just a common mutual company prerequisite?

I believe the carriers learned the hard way that 90% of the people they appoint dont submit any business. It costs money each year in every single state to have every a person appointed in addition to the initial set up costs of background check & checklist.

most states have a window of like 7-15 days that you can become appointed after the date on the life application. After that window, if you still are not appointed, they just need a new date on the life application to be compliant

 

[Tahoe Ray]

It cost money to run the appointment process and to keep you on the books. Similar reason that life insurers un appoint you when you are not selling anything.

This is the reason for JIT contracting (that as others pointed out is very common unless you're writing in a pre-appointment state like PA).

Carriers have to pay, so they don't want to appoint unless you write and will term you after a period of time if don't write more cases.

Some companies like Assurity will ask if you want to keep a particular non-res state active and if you do, they'll make you pay the appointment fee.

 

[MKAGENT]

Thank you.