by Ryan9694 » Fri Oct 05, 2012 06:58 am
Hey everyone,
My name is Ryan, and I've been an Independent Agent for nearly 2 years now. I was a captive agent for nearly 7 years before making the leap. I'm hoping to use this forum as a means to gather more knowledge and build on my success.
I'm currently a producer for a small independent insurance agency. There are 5 owners that founded it 3 years ago, and I'm currently their only producer. However, they do produce themselves of course. I currently have an 80/20 commission split on P/C, and a 90/10 commission split on Life/Health. Do you guys think that's a fair split? They allow me to use their office for appointments, but that is rare as I usually meet my clients at their homes or at another meeting place such as Starbucks. They pay for my E&O insurance, but it's minimal. Other then that, there really is no other costs associated with having me as a producer with their company.
I'm also really interested in establishing my own agency in the somewhat near future, but I'm afraid I have some tough obstacles to overcome. Due to a poor investment in the housing market, and some medical bills, I opted to file for a Chapter 7 bankruptcy, which was discharged earlier this year. I have a feeling that despite my 8 years of experience, and solid numbers as a producer, I will be turned down if I attempt to get any appointments on my own.
Does anyone have any suggestions on what I can do? My main concern is that the owners I work for can let me go at anytime and just bank on all the business that I've brought them. I didn't sign a non-compete or anything, but they are currently the owners of the business I write. I don't think they would let me go, but it's always a possibility and I would like to protect myself, and ultimately own the business that I write, so that I can pass the business onto family or sell it when I retire (which won't be for another 25-30 years).
I appreciate any advice/feedback that can be offered.
Thank you!
My name is Ryan, and I've been an Independent Agent for nearly 2 years now. I was a captive agent for nearly 7 years before making the leap. I'm hoping to use this forum as a means to gather more knowledge and build on my success.
I'm currently a producer for a small independent insurance agency. There are 5 owners that founded it 3 years ago, and I'm currently their only producer. However, they do produce themselves of course. I currently have an 80/20 commission split on P/C, and a 90/10 commission split on Life/Health. Do you guys think that's a fair split? They allow me to use their office for appointments, but that is rare as I usually meet my clients at their homes or at another meeting place such as Starbucks. They pay for my E&O insurance, but it's minimal. Other then that, there really is no other costs associated with having me as a producer with their company.
I'm also really interested in establishing my own agency in the somewhat near future, but I'm afraid I have some tough obstacles to overcome. Due to a poor investment in the housing market, and some medical bills, I opted to file for a Chapter 7 bankruptcy, which was discharged earlier this year. I have a feeling that despite my 8 years of experience, and solid numbers as a producer, I will be turned down if I attempt to get any appointments on my own.
Does anyone have any suggestions on what I can do? My main concern is that the owners I work for can let me go at anytime and just bank on all the business that I've brought them. I didn't sign a non-compete or anything, but they are currently the owners of the business I write. I don't think they would let me go, but it's always a possibility and I would like to protect myself, and ultimately own the business that I write, so that I can pass the business onto family or sell it when I retire (which won't be for another 25-30 years).
I appreciate any advice/feedback that can be offered.
Thank you!
Posted: Fri Oct 05, 2012 11:50 am Post Subject:
I currently have an 80/20 commission split on P/C, and a 90/10 commission split on Life/Health. Do you guys think that's a fair split?
andthey are currently the owners of the business I write. I don't think they would let me go, but it's always a possibility and I would like to protect myself, and ultimately own the business that I write,
What's "fair" to me might not be "fair" to you. You accepted splits of 80/20 and 90/10 but you gave up your renewals (your "book of business").
Maybe if you negotiated a 60/40 or 75/25 split on all new business you might get to keep your renewals. Is that "fair"? I can't answer that for you. Maybe if you agree not to leave before you've been there at least 5 years you can keep your renewals. Is that "fair"?
Those questions you have to answer for yourself.
As for your bankruptcy issue, every company has its own guidelines for appointing agents. Some don't care, others do. All you can do is ask.
Insurance companies definitely have more trouble with agents who owe money to other insurance companies (unresolved chargebacks) than they do with personal bankruptcies.
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