Can a insurance agent sell polices to their relatives from their own agent code and earn commissions?
Total Comments: 11
Posted: Fri Jul 17, 2009 11:51 am Post Subject:
yep
Posted: Fri Jul 17, 2009 07:49 pm Post Subject:
Sure thing, but you'll probably sell more to people you've never met in your life than to family.
Posted: Tue Jul 21, 2009 08:30 pm Post Subject: Texas regulation on controlled business
Texas statute requires at least 25% of the business you place is for the general public. Only 75% of your book can be "controlled" business meaning you control it through ownership, mortgage, sale, family relationship, or employment.
Texas Insurance Code 4001.104
AnMarieB
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Posted: Tue Jul 21, 2009 08:35 pm Post Subject:
Only 25%? That seems low.
Posted: Tue Jul 21, 2009 08:48 pm Post Subject:
I'm actually thankful for the low threshold. I know many agents that have built a substantial part of their business from friends, relatives, and business associates.
Code reads as follows: "...at least 25 percent of the total volume of premiums is derived from persons other than the applicant and from property other than that on which the applicant controls the placing of insurance through ownership, mortgage, sale, family relationship, or employment."
AnMarieB
Web address deactivated as per the forum rules
Posted: Wed Jul 22, 2009 01:32 pm Post Subject:
This has very little to do with "friends, relatives, and business associates". One can build 100% of their volume from this and it wouldn't be a problem.
The key is, "controls the placing". In most cases, one does not control the placing when it comes to friends, relatives and business associates.
The law stops someone from becoming an agent to simply earn a commission on their own policy.
The vast majority of your friends, relatives, and business associates (unless you are the owner) will be considered to be the "general public".
Posted: Wed Jul 22, 2009 02:58 pm Post Subject:
The intent of the Texas legislature (as spelled out in the following statute) was to only issue a license to an agent if they intend to benefit the General Public. In Texas, it is extended beyond simply earning commissions on your own policy.
Sec. 4001.104. ISSUANCE OF LICENSE: INTENT TO ACTIVELY ENGAGE IN BUSINESS OF INSURANCE FOR GENERAL PUBLIC. (a) The department may not issue a license as an agent to write any line of insurance unless the department determines that:
(1) the applicant is or intends to be actively engaged in the soliciting or writing of insurance for the general public and is to be actively engaged in the business of insurance; and
(2) the application is not made to evade the laws against rebating and discrimination, either for the applicant or for another person.
(b) This subchapter does not prohibit an applicant from insuring property that the applicant owns or in which the applicant has an interest. It is the intent of this subchapter to prohibit coercion of insurance and to preserve to each individual the right to choose that individual's own agent or insurer and to prohibit the licensing of an applicant to engage in the business of insurance principally to handle business that the applicant controls only through ownership, mortgage, sale, family relationship, or employment. An applicant for an original license must have a bona fide intention to engage in business in which, in any calendar year, at least 25 percent of the total volume of premiums is derived from persons other than the applicant and from property other than that on which the applicant controls the placing of insurance through ownership, mortgage, sale, family relationship, or employment.
Posted: Thu Jul 23, 2009 11:03 am Post Subject:
Just to be clear, when I talk about "own policy", I'm talking about any policy in which one has a financial stake.
Posted: Fri Jul 24, 2009 10:15 am Post Subject:
I know many agents that have built a substantial part of their business from friends, relatives, and business associates.
I guess such agents are real good at utilizing our cross selling tips when it comes to selling. They'd first sell upon your needs, then they'd push further with other offers.
Posted: Fri Jul 24, 2009 10:33 am Post Subject:
I guess such agents are real good at up-selling or cross-selling. They'd first sell upon your needs, then they'd push further with other offers.
I would assume ANY and ALL successful agent would be good at this...otherwise, they're in the wrong business.. :wink:
Posted: Fri Jul 17, 2009 11:51 am Post Subject:
yep
Posted: Fri Jul 17, 2009 07:49 pm Post Subject:
Sure thing, but you'll probably sell more to people you've never met in your life than to family.
Posted: Tue Jul 21, 2009 08:30 pm Post Subject: Texas regulation on controlled business
Texas statute requires at least 25% of the business you place is for the general public. Only 75% of your book can be "controlled" business meaning you control it through ownership, mortgage, sale, family relationship, or employment.
Texas Insurance Code 4001.104
AnMarieB
Web address deactivated as per the forum rules
Posted: Tue Jul 21, 2009 08:35 pm Post Subject:
Only 25%? That seems low.
Posted: Tue Jul 21, 2009 08:48 pm Post Subject:
I'm actually thankful for the low threshold. I know many agents that have built a substantial part of their business from friends, relatives, and business associates.
Code reads as follows: "...at least 25 percent of the total volume of premiums is derived from persons other than the applicant and from property other than that on which the applicant controls the placing of insurance through ownership, mortgage, sale, family relationship, or employment."
AnMarieB
Web address deactivated as per the forum rules
Posted: Wed Jul 22, 2009 01:32 pm Post Subject:
This has very little to do with "friends, relatives, and business associates". One can build 100% of their volume from this and it wouldn't be a problem.
The key is, "controls the placing". In most cases, one does not control the placing when it comes to friends, relatives and business associates.
The law stops someone from becoming an agent to simply earn a commission on their own policy.
The vast majority of your friends, relatives, and business associates (unless you are the owner) will be considered to be the "general public".
Posted: Wed Jul 22, 2009 02:58 pm Post Subject:
The intent of the Texas legislature (as spelled out in the following statute) was to only issue a license to an agent if they intend to benefit the General Public. In Texas, it is extended beyond simply earning commissions on your own policy.
Sec. 4001.104. ISSUANCE OF LICENSE: INTENT TO ACTIVELY ENGAGE IN BUSINESS OF INSURANCE FOR GENERAL PUBLIC. (a) The department may not issue a license as an agent to write any line of insurance unless the department determines that:
(1) the applicant is or intends to be actively engaged in the soliciting or writing of insurance for the general public and is to be actively engaged in the business of insurance; and
(2) the application is not made to evade the laws against rebating and discrimination, either for the applicant or for another person.
(b) This subchapter does not prohibit an applicant from insuring property that the applicant owns or in which the applicant has an interest. It is the intent of this subchapter to prohibit coercion of insurance and to preserve to each individual the right to choose that individual's own agent or insurer and to prohibit the licensing of an applicant to engage in the business of insurance principally to handle business that the applicant controls only through ownership, mortgage, sale, family relationship, or employment. An applicant for an original license must have a bona fide intention to engage in business in which, in any calendar year, at least 25 percent of the total volume of premiums is derived from persons other than the applicant and from property other than that on which the applicant controls the placing of insurance through ownership, mortgage, sale, family relationship, or employment.
Posted: Thu Jul 23, 2009 11:03 am Post Subject:
Just to be clear, when I talk about "own policy", I'm talking about any policy in which one has a financial stake.
Posted: Fri Jul 24, 2009 10:15 am Post Subject:
I know many agents that have built a substantial part of their business from friends, relatives, and business associates.
I guess such agents are real good at utilizing our cross selling tips when it comes to selling. They'd first sell upon your needs, then they'd push further with other offers.
Posted: Fri Jul 24, 2009 10:33 am Post Subject:
I guess such agents are real good at up-selling or cross-selling. They'd first sell upon your needs, then they'd push further with other offers.
I would assume ANY and ALL successful agent would be good at this...otherwise, they're in the wrong business.. :wink:Add your comment