Things Needed to Become Independent

[RollTide713]

Im currently captive with woodmen of the world. I have been thinking of becoming indy or moving to a different state to work at a different branch without the corporate feel. What is exactly needed to become independent? Would I need a business entity license or can you use producers license? How much does E&O coverage really cost? I have no clue as it comes out of my check before I ever see it.

 

[xrac]

Im currently captive with woodmen of the world. I have been thinking of becoming indy or moving to a different state to work at a different branch without the corporate feel. What is exactly needed to become independent? Would I need a business entity license or can you use producers license? How much does E&O coverage really cost? I have no clue as it comes out of my check before I ever see it.

Ain't nothing to it. You can just become appointed directly with the companies you want to use or hook up with a FMO or IMO. Appointments are available through several of the people on this forum. What state are you in and what type of products do you want to sell?

 

[RollTide713]

Well I currently have my life and health license. After a few more years I will take a look at P&C. I have a producers license. I know on the NIPR website they have 2 choices. Producers license and business entity license. Trying to figure out what the business entity license is for also and how much E&O coverage will cost. Just looking for guidance in the correct direction to do it. Im captive but still pay for cards, laptop use, license fees, and all the good stuff. They do pay some health benefits and some retirement. But they jack commisions splita. Cancer being 70/30 with me on the low end. UL FL being 50/50. Kinda think id at least get free cards and.laptop with that split.

 

[xrac]

Well I currently have my life and health license. After a few more years I will take a look at P&C. I have a producers license. I know on the NIPR website they have 2 choices. Producers license and business entity license. Trying to figure out what the business entity license is for also and how much E&O coverage will cost. Just looking for guidance in the correct direction to do it. Im captive but still pay for cards, laptop use, license fees, and all the good stuff. They do pay some health benefits and some retirement. But they jack commisions splita. Cancer being 70/30 with me on the low end. UL FL being 50/50. Kinda think id at least get free cards and.laptop with that split.

As long as it is only life and health you can get E&O for about $500 a year. There are several threads on this forum that tell you who has good deals on E&O. If you are talking P&C you are talking about a different animal than L&H.

 

[RollTide713]

What are some food imo/fmo to get with for life, annuities, and health products in the North Alabama and Southern Tennessee region? Like I have said, I am currently captive with woodmen of the world but since I will be paying for all my own leads, marketing, fraternal activities, laptop use, license fees, business needs, and office space, a long with them getting splits from 50%-80% of my commission and me paying my own E&O then why not be independent? Yeah, they do offer group benefits and I have it on the wife and I for $75 a month but my closest support staff is 160 miles away with meeting every month rounding to $475 gas a month before any set appointments. Just makes me feel woodmen is in a get rich scheme for the managers off of the field reps. I go to church with a guy thats indy. Have never really spoke to him about it though. May give that some thought. Some pointers would be great though. I could make more going back to being a bug man than I would be with Woodmen of the world is what I am trying to say :/

 

[Bawse]

Im kinda in your predictment.... I got my E&O through NAPA direct a lot of ppl use Calsurance...because I am in a different region than you not too sure who you would look to as an imo or fmo for the right product mix but I am going through AIO, starting out for cancer and UL you would be looking at 60- 70% for commission and they offer good product for my area and being independent I can seek appoint with carriers that are not offered to them as well.

 

[RollTide713]

Im just kinda floating in the air right now. Kinda thought about going to LNL but they have very very limited products. I also thought about massmutual but thats mainly white collar prospects. Kinda hard to find enough white collar ppl in North Alabama and Southern Tennessee to make a living at it. Will probally just speak with the guy I go to church with. The answers I been getting on here are completely foreign to the question I am actually asking.

 

[Todd King]

If you are not a business entity (which you don't have to be), then you don't have to get E&O to cover your "business". If you go independent, all you will need is E&O to cover yourself. That would run somewhere around $450-$500.

 

[RollTide713]

Ok. I understand it now. Basically a business entity license is used for instance if a state farm agent decides to open his or her own branch of that corporation, correct?
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And have agents working under them?

 

[Todd King]

If State Farm requires that, yes. There are many (on the L&H side anyway), that have agents under them and still don't have an established "business".

The P&C side might be a whole different animal. I don't work that market at all, so I'm not sure.