Comments on: Finding a Business Insurance Agent

By: jessheffernan2003

jessheffernan2003 — Sun, 10 Jan 2010 22:01:57 +0000

Given that you have 3 years industry experience you should be fairly embedded in the community. I would suggest reaching out to a local agent that specializes in a product you have no intention of selling and pick their brain a bit. Each state has different angles and depending on your product experience you may not even qualify for a business entity license with the DOI. Assuming you do…

The real issue that a new agency faces is the multi layered regulatory approval process.

1. You need to set up an LLC or Corp with your State. (Suggestion S-Corp)

2. You need to entertain the Department of Insurance approval process.
(This can be a pain in the neck depending on your state)

3. Registration with NASD. (If you intend on selling any variable products and or anything tied to a security)

4. Obtain a bond for property and/or surplus lines.

There are a lot of resources on the making of corporations however; can be be done fairly straight forward through legal zoom or some other resource. The real issue is the Department of Insurance approvals which will have no book to reference. I would suggest calling the Department of Insurance for their business entity checklist. This checklist along with some peer support should guide you through to your goal.

By: psu176

psu176 — Sun, 10 Jan 2010 07:28:10 +0000

OK, as you probably realize, the coverage for this can't be bound overnight, and will take a bit of work to get put in place. You're going to need about two weeks, MINIMUM, so if the NEW guy isn't returning calls, you need to find ANOTHER new agent. But clearly, the first guy, both has no idea what he's doing (how to place it), AND, isn't really excited about working on your account.

Workers comp is probably going to run about 10% of payroll. That might be a bit high, but if you use that number, you won't be shocked. GL is probably going to START at $5,000, and add $500 for each provider. Employee benefits – group health – will probably run about $400 a person for an individual, $1200 for a family, for a LOW/NO deductible plan – but that varies wildly depending on the average age of your group.

Make SURE that new agent is working on your quote. Otherwise, you will NOT be opening the doors on March 1st.

By: kimberlee g

kimberlee g — Sun, 10 Jan 2010 05:31:10 +0000

There is no central database. The executor of an estate can pay $75 to these guys http://www.mib.com/html/lost-life-insurance.html who will tell them if any applications have been submitted to any companies in the past ten years. But the executor can ALSO go through the old banking statements, to find out which insurance company has been getting paid – they are usually paid once a year, or once a month.

Plus, most people do NOT have life insurance in place when they die. So it's kinda wishful thinking, if you are just HOPING a policy is in place. Have the executor go through the banking records, or just sit and wait – the insurance company will send a statement once a year on that policy – even if it's just a bill.

By: anaise

anaise — Sun, 10 Jan 2010 01:28:46 +0000

once you have established a history with them after a considerable amount of time then you are no longer new business I know first hand what you mean.

By: k

***k*** — Sat, 09 Jan 2010 08:57:23 +0000

I think and arm and a leg!

By: salomex86

salomex86 — Sat, 09 Jan 2010 07:41:33 +0000

Check out other answers on this topic from the past. It's a great business if you make it, but very few make it.

Good luck

By: wondering

wondering — Fri, 08 Jan 2010 16:27:29 +0000

This can be very difficult, and often requires knowing people in the business. Most agents simply stop prospecting and let the business slowing spin down over time, even if they relocate out of state. Client inertia means that this can work for years, with minimal levels of service.

The going rate for health biz is 1.5x annual commissions. However, there is plenty of risk that the business won't stay around after the transition. Often, larger blocks include a period where the old owner stays around for quite a while, and a guarantee on the business staying is part of the deal.

By: Picara

Picara — Fri, 08 Jan 2010 11:03:17 +0000

OK, with no experience, your BEST bet is to get a job with an agency, working on straight commission. Just about anyone should give you a job. Along with basic training, you'll have some support help there, and over the next year or two, you'll learn all about the business.

With no experience, it's pretty darned tough to get a company appointment, and you won't have any product to SELL. And 1,000 characters that they give you here, is NOT going to teach you what you need to know – you need real life backup. That's why I suggest working for someone else for a few years.

By: helenlane_kia

helenlane_kia — Fri, 08 Jan 2010 10:23:41 +0000

try google or ask.com