by ShihanyLifeAltes » Tue Mar 26, 2019 04:00 am
Current studying for a P&C broker’s license, was going to get brought on underneath a licensee who is currently doing very well in the business. I have concerns that I will actually be building his book of business because I am a solicitor and ultimately the policy is going to be written under his Omissions and Errors insurance etc.
In the contract there’s a standard three year do not compete clause, and also stipulates that if I want to branch off from underneath him, I can not go straight to the agency that he is working for and ask to be employed by them.
I’ll be working on a 1099 basis part time because I am not in the position where I can quit my full time job. I’m being told that when I call up a carrier, I am to give his name, and say I'm a customer service rep of his. As already pointed out it will go under his O&E Insurance
The main reason I want to get into insurance brokering is that I’d like to build something of my own, and with the way this arrangement is set up, I am not sure I have much ability to move the business even after the three years. Afterall, its not in my name.
Am I building my own business or am I essentially a salesmen for someone? I don’t know how easy it is for personal (I'll start out with personal and maybe do commercial once trained) P&C brokers to carry business elsewhere, and this is further complicated by the fact that the policies themselves will be in his name.
Can anyone clear any of this up for me? If not, point me in the direction of where I can learn more about this? Furthermore, can I protect myself in anyway?
I'm under the impression agencies typically do not bring on brokers on a part time basis, that is why I've opted to work underneath someone else. That and the licensee that I am set to work under is a friend that I do trust and I know he gives great support for his other team members. But I have not yet called other agencies in the area to see if they bring on part time brokers.
In the contract there’s a standard three year do not compete clause, and also stipulates that if I want to branch off from underneath him, I can not go straight to the agency that he is working for and ask to be employed by them.
I’ll be working on a 1099 basis part time because I am not in the position where I can quit my full time job. I’m being told that when I call up a carrier, I am to give his name, and say I'm a customer service rep of his. As already pointed out it will go under his O&E Insurance
The main reason I want to get into insurance brokering is that I’d like to build something of my own, and with the way this arrangement is set up, I am not sure I have much ability to move the business even after the three years. Afterall, its not in my name.
Am I building my own business or am I essentially a salesmen for someone? I don’t know how easy it is for personal (I'll start out with personal and maybe do commercial once trained) P&C brokers to carry business elsewhere, and this is further complicated by the fact that the policies themselves will be in his name.
Can anyone clear any of this up for me? If not, point me in the direction of where I can learn more about this? Furthermore, can I protect myself in anyway?
I'm under the impression agencies typically do not bring on brokers on a part time basis, that is why I've opted to work underneath someone else. That and the licensee that I am set to work under is a friend that I do trust and I know he gives great support for his other team members. But I have not yet called other agencies in the area to see if they bring on part time brokers.
Posted: Sun Mar 31, 2019 08:28 pm Post Subject: Moving Policies when you move on...
This is a very common and often misunderstood concept by even people that have been in the business a while. I will keep this as simple as possible as I tend to get wordy sometimes.
The policies you write or for that matter anyone writes are written and tracked by a code issued by the carrier. That code, is owned and always will be by the master code (The keeper of the contract with the carrier). Unless your contract is direct with a carrier, you're always going to be beholden to the master code, and any sub codes between you and the master code.
This is true in any agency, aggregator, cluster etc etc
That said, there is hope. You have a contract between you and the master code your under and you can identify your rights to move business, solicit customers etc etc pretty easily in a contract with the said master entity the same as you would as a master code holder with a carrier.
SO... no matter where you go or what you do, look closely at the exit language of the contract and you'll find your answers. I was just talking this week with someone in your situation and I will tell you what I told him... you are taking the appropriate steps in asking these questions in advance. Keep it up and when you do hit the ground, rock it out and never look back.
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