Typical GA

[mswebb06]

The GA will most likely own the business..

 

[NCAgent]

Now, just to clarify, when you say GA do you mean working under another agent, or joining a part of a cluster like Iroquois group or SIAA?

Some people mix those terms up, I see it a lot.

If you are working under an indy (which I recommend starting off) then the indy will probably say that you don't have book ownership or get vestment in the book over X number of years. They might carve out exceptions for family members and things of that nature.

Typically they own the book, and you get a split of commissions both new and renewal. Depending on what they do for you, those splits might be higher or lower. E&O is expensive, and carriers are hard to obtain on your own. If the agent provides you office space with a computer and phone, an agency management system, and everything to start writing business, then the agent will probably get 40-60% of the new commissions and 40-60% of the renewals. I have a 50/50 for new and renewals but I work from home mainly. I just have the office if a client wants to genuinely meet me somewhere that isn't their home, office, or panera. So 10-15% commission is split that way, with 14-15% being the average if you have direct appointments for standard/preferred carriers, 10% for non-standard like Progressive.

If you mean a cluster like SIAA or Iroquois or aggregator like Insurance Noodle, then you need to ask each of them specifically since they have other terms that they leverage besides book ownership.

Non-competes for your own carriers? Commission splits, and monthly/annual fees? Other stipulations such as the ability to get other carriers on your own or appoint people in your agency, the number of agents allowed to be in that cluster for your part of town, etc.

 

[AverageJoe]

Now, just to clarify, when you say GA do you mean working under another agent, or joining a part of a cluster like Iroquois group or SIAA?

Some people mix those terms up, I see it a lot.

If you are working under an indy (which I recommend starting off) then the indy will probably say that you don't have book ownership or get vestment in the book over X number of years. They might carve out exceptions for family members and things of that nature.

Typically they own the book, and you get a split of commissions both new and renewal. Depending on what they do for you, those splits might be higher or lower. E&O is expensive, and carriers are hard to obtain on your own. If the agent provides you office space with a computer and phone, an agency management system, and everything to start writing business, then the agent will probably get 40-60% of the new commissions and 40-60% of the renewals. I have a 50/50 for new and renewals but I work from home mainly. I just have the office if a client wants to genuinely meet me somewhere that isn't their home, office, or panera. So 10-15% commission is split that way, with 14-15% being the average if you have direct appointments for standard/preferred carriers, 10% for non-standard like Progressive.

If you mean a cluster like SIAA or Iroquois or aggregator like Insurance Noodle, then you need to ask each of them specifically since they have other terms that they leverage besides book ownership.

Non-competes for your own carriers? Commission splits, and monthly/annual fees? Other stipulations such as the ability to get other carriers on your own or appoint people in your agency, the number of agents allowed to be in that cluster for your part of town, etc.

Thanks. I am talking about going under an agency, but I will not be completely under him. Work as a broker, if you will. I wil have my own agency and I have my E&O already and my appointments, but im limited because the carriers I have appointment with don't necessarily cover all the markets that I need to hit.

for example, yesterday we came across a person that needed contractors general liability and the carrier I am with doesnt do contractors gl in florida so we called an agency that has got our clients contractors gl before.

We began talking and they sent me an agency agreement. where I would have my own appointments, BOB, but if i came across a person like that, (contractor) to call them. I gather the persons information ship it to them through email, then they pick the carrier and provide the client with coverage, i get 50% commission on every one that I bring to them.

one thing i am concerned if someone could answer, lets say 6months down the road I want to apply for appointment with carrier, how much premiums i wrote in personal/commercial, can i put down the policies that I wrote through that agency? even though its their book of business?

 

[NCAgent]

Thanks. I am talking about going under an agency, but I will not be completely under him. Work as a broker, if you will. I wil have my own agency and I have my E&O already and my appointments, but im limited because the carriers I have appointment with don't necessarily cover all the markets that I need to hit.

for example, yesterday we came across a person that needed contractors general liability and the carrier I am with doesnt do contractors gl in florida so we called an agency that has got our clients contractors gl before.

We began talking and they sent me an agency agreement. where I would have my own appointments, BOB, but if i came across a person like that, (contractor) to call them. I gather the persons information ship it to them through email, then they pick the carrier and provide the client with coverage, i get 50% commission on every one that I bring to them.

one thing i am concerned if someone could answer, lets say 6months down the road I want to apply for appointment with carrier, how much premiums i wrote in personal/commercial, can i put down the policies that I wrote through that agency? even though its their book of business?

You need to have that spelled out in the contract. Verbal agreements don't work well when it comes into court, IMO. Get them to agree to it and then have them make a record of all the policies that you send them and make sure it stays updated. Then when it is time to roll to a carrier, you can transition easily.

Ask the carrier if they want the book you can roll over, or the book you have written period. That will answer your question.

 

[AverageJoe]

Okay thanks. I do already have the agreement on paper. Thanks for the help.

 

[FLInsa]

What is going on Gus! As mentioned by another poster, just make everything is in writing.