by raul-rsj » Wed Sep 29, 2010 07:30 pm
I have a question about starting an insurance agency selling only commercial lines(for now). I am licensed in CA for Life & health and also P & C , as well as having a series 7,66. I have the opportunity to affiliate with an established payroll company and offer its current customers commercial insurance products. I have two options join and existing agency and form a partnership , or start my own agency. I would like to keep ownership of the book that we write. Which would you recommend and why.
Posted: Thu Sep 30, 2010 04:39 am Post Subject:
If you're going to join an existing agency, then you'd most likely need to accept more of their terms. Regarding your independent agency, it's better you gather some experience even though you have the license to operate in all the good lines. Once you have some experience, you'll develop your own book quite naturally. I'll wait for the experts to comment on this though.
Posted: Fri Oct 08, 2010 08:42 pm Post Subject:
First, with no book it's gong to be very hard for you to get appointments with commercial carriers. See what the terms are with joining the other company. See if you like them and weigh your options.
Posted: Sat Oct 09, 2010 05:56 am Post Subject:
It's certainly not going to be a cake-walk if you're going without a book. But some people have really worked hard and proved themselves.
See if you like them and weigh your options.
Yeah, you've to weigh both the pros and cons of joining this company. You should not only consider your commission percentage, you should also keep an eye on their overall success in the past.
Posted: Sat Oct 09, 2010 07:58 am Post Subject:
While it's always easiest to begin a new agency with an existing book of business, as the owner of a new agency, getting appointments to represent any number of insurance companies is simply a matter of approaching them and asking to be appointed. Some will and some won't.
After you've developed a book of business that other companies see an opportunity to perhaps gain a share of, then they will appoint you on request.
I've worked both sides -- as a captive agent, as an agent in another person's agency, and now as an independent. Each has its advantages and disadvantages. I seem to prefer being my own "boss".
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