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 Posted: Thu Feb 05, 2009 8:27 am Post subject: Hello from Minnesota |
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Hello all. I am thinking about starting my own Independent Brokerage Agency in the next few months and looking for as much advice as I can get from all the experienced individuals on this website. I plan to start small and work out of my home office starting with life and health lines.
I am 40 years old and have a BS in Business Management with experience the Military, Construction, Management and Sales. After my company downsized due to the current economic crisis I am looking for a career change and am looking at Insurance. I have no experience in Insurance other than as a consumer.
My perception is given the current economy and the new administration in the white house that the Health Insurance Industry will experience tremendous growth over the next few years and Agents and Brokers will be in high demand.
I have researched the market in my area and don't see many Independent Brokers but see alot of Captive Agents working out of State Farm, American Family and Farmers. I have no interest in being Captive and see more benefits to being Independent.
I have a million questions and have spent hours and hours researching the Insurance Industry online to prepare myself. Any advice is welcome and I will be posting my questions soon. Thanks. |
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HASS
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| Posted: Thu Feb 05, 2009 11:06 am Post subject: |
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Till the time the experts gather around this thread, I'd throw my two cents in a hurry.
First of Hass, you have get hold of the license to do business as an insurance agent. So, get in touch with the licensing department to complete the licensing procedure.
Second, since you want to operate as an independent broker you also have to obtain the business license for it.
Third, an agent also need to get the error and ommision coverage in case he/she faces a lawsuit from a customer.
Forth, you have to bear the expenses of maintaining an agency along with the ledgers and books as an independent agent. If you hire others to work for you keep in the mind their compensation as well.
Best of luck!
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boxfullofrocks
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| Posted: Thu Feb 05, 2009 11:13 am Post subject: |
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Welcome Hass to the ampminsure community!
| Quote: | | I have researched the market in my area and don't see many Independent Brokers but see alot of Captive Agents working out of State Farm, American Family and Farmers. I have no interest in being Captive and see more benefits to being Independent. |
Let me tell you that some insurers would prefer (State Farm for example) a captive agent over an independent one. But its true that there are better scopes for an independent agent than the captives since they have more control over their business. However, you need to specify the nature of advice that you are looking.
~jeremy |
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JeremyHolter
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| Posted: Fri Feb 06, 2009 12:34 am Post subject: |
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Welcome HASS!
 Great avatar! 
HASS wrote:
| Quote: | | I plan to start small and work out of my home office starting with life and health lines. |
That is a sound business plan!
Now here's what next...
You have to get licensed by the state of Minnesota before you can get appointed to sell life and health insurance.
Now STOP.
Go do that and DO NOT put anything into your brain except studying to pass the state licensing exam.
The information you need to pass a state insurance licensing exam and the information you need to run an insurance agency have nothing to do with each other.
Don't pollute your mind with actual contract provisions and sales and marketing ideas vs. the information you need to pass the test.
When people express an interest to us regarding becoming an agent we never discourage that...but we simply advise them to re-contact us once they actually hold an insurance license and of course we give them all the information they need to accomplish that.
The reason being, there isn't anything you can do with someone who is NOT licensed and until that hurdle is overcome there isn't anything that can be done.
So you've got the right business plan, now, go get your license.
Once you get your license,... then do exactly everything your GA tells you to do,... that way,... if you fail,... it will be his fault....not yours.
 Then check back here so we can argue about an IRC section 72t exception for SEPP from a qualified pension plan prior to age 59 1/2! 
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GarySpicuzza
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| Posted: Fri Feb 06, 2009 6:26 am Post subject: |
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| Quote: | | I have no interest in being Captive and see more benefits to being Independent. |
I'm sure anyone who's aiming to earn quick profits would think like that!
But my friend..I've seen pretty many successful captive agents turning out to be productive independent agents later on.
Perhaps this is where the information to run insurance agencies as mentioned by Gary would come to your help 
All the very best!
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anonymous00
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| Posted: Fri Feb 06, 2009 1:07 pm Post subject: |
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I like HASS' avatar!
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GarySpicuzza
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| Posted: Sat Feb 07, 2009 7:03 am Post subject: |
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| FIRST OF ALL JOIN SOME INSURANCE COMPANY AND HAVE SOME EXPERIENCE THERE< IF YOU WILL YOURSELF FIT FOR THIS BUSINESS THEN START IT BY YOURSELF |
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Lucysmith
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| Posted: Sun Feb 08, 2009 1:13 am Post subject: |
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Thanks everybody for the good advice. I look forward to starting a new career in the insurance industry and will be tapping into you all for advice as I learn my new trade.
Gary - I'm glad you like my dancing chick. |
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HASS
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| Posted: Tue Feb 17, 2009 8:02 pm Post subject: |
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You are wise to become an independent broker. The key will be for you to navigate the independent "Career Agent" carrier contracts along side the normal General Agent world. My suggestion is to thoroughly investigate all companies and/or organizations you wish to partner with to build your business. Good luck.
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hlink23
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| Posted: Wed Feb 18, 2009 1:00 am Post subject: |
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Update - I just completed my 2nd day of class in Insurance Principles which goes through Thursday for 30 hours total. Next week, I got Life and Accident & Health class for 2 days and then Property & Casualty class for 2 days for another 30 hours total, then I can take the state exam. Our Instructors said to schedule our exams if we hadn't already.
We had 66 people in my class on day one and had 41 on day two, not sure why so many bailed this early. We had to introduce ourselves and most students are affiliated with a company (all the big players) and about 6 of us are Independents. We have a new Instructor each day and they have been extremely knowledgable each with 35 + years experience in the Insurance business.
Both Instructors said the Insurance industry has been unaffected by the economy. They said the best areas for opportunity are in health and long-term care. Health because of the economy causing people to lose there benefits and long-term care because the first baby boomers started hitting 60 in 2006.
I'm following Gary's orders to stop everything until I get my license. I don't want any unnecessary info polluting my brain until after I pass the exam. Our Instructors won't even discuss "what if's" that are not directly related to the exam for the same reason. Thanks for all the advice and help. Bye for now - Hass |
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HASS
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| Posted: Wed Feb 18, 2009 9:15 pm Post subject: |
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| Hey Hass- where in MN are you? I'll be taking the Principles class in a few weeks also - I'm in the Golden Valley / Plymouth area |
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charm
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| Posted: Wed Feb 18, 2009 11:58 pm Post subject: |
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Charm,
I am in the south-western corner of the Twin Cities in Belle Plaine and taking classes in St. Paul. Day 3 of Principles is over and it's a lot of info to learn. Just found out today I need to take an additional 8 hour class on Long-Term Care Insurance if I want to sell LTC. I will set my sights on that after I pass the state exam. So far, everything is going good.
Tomorrow we take our fist practice exam so I gotta study, later - Hass |
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HASS
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| Posted: Thu Feb 19, 2009 1:46 am Post subject: |
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| Quote: | | I'm following Gary's orders to stop everything until I get my license. |
That's funny!
Not orders Hass...just the truth.
Once you get your license let me know and I can get you contracted with one of the top Independent Marketing Organizations in the USA.
| Quote: | | We had 66 people in my class on day one and had 41 on day two, not sure why so many bailed this early. |
 Wow,... lost a third of the new students by day two!
I'm not surprised.
Out of 100 agents who get licensed only about 10 will still be in the business after one year.
After two years only about 2 will remain.
That's the 90% - 90% - 1-2 punch, kill rate.
Selling insurance is simple, but it's not easy.
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GarySpicuzza
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| Posted: Thu Feb 19, 2009 9:30 am Post subject: |
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Hi Gary,
| Quote: | | Selling insurance is simple, but it's not easy. |
IMO selling insurance would only become a bit easier when you've successfully created the 'coverage need' within the mind of your prospect.
Don't you think it would be better if the insurance adviser would convince his prospect regarding the unforeseen consequences rather than focusing on benefits comparison with their competitors?
Crossbreed
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Crossbreed
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| Posted: Mon Feb 23, 2009 9:15 am Post subject: |
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Hi HASS,
Gary is right, you are taking a good business approach doing it from home. (and I agree, your avatar is really cool). You have found a good place to get advice. Good luck on your exams.
And welcome Charm.
Hope to see the both of you around for a good while.
It is a tough business to survive through the first two years, but everyone that I know that has been stubborn enough to tough it out that long is getting pretty well off financially. (including myself, just made it past the two year mark myself)
Good luck to the both of you.
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beatuplunchbox
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