First Year

Porter · Post by **Porter** » Sat Apr 22, 2006 1:11 pm

You would need to write about $2 mil in written premium to get $200k in commission your first year. You would need a lot going on to hit that goal. Lots of capitol, well connected, luck and a family member that hands you a $2mil account.

InsAgentSF · Post by **InsAgentSF** » Sat Apr 22, 2006 1:12 pm

I see what you are saying. Let's talk in written premium terms. The goal for my agency (with 2 producers) 1.2 mil in premium the first year. BF means Broker Fee and it's a big addition to the revenue. Now if i was a producer who just starts, i would probably be looking at 350,000 in written premium

shemeshka · Post by **shemeshka** » Sat Apr 22, 2006 3:08 pm

InsAgentSF, thank you for clarifying it for me. What makes you be able to produce $1.2 million in your first year and not $350K? It that all experience? Connections? Family member/friends with $500K accounts?

People, I need more opinions, please. What is a good number of written premium for one producer agency for the first year in California?

InsAgentSF · Post by **InsAgentSF** » Sat Apr 22, 2006 4:08 pm

shemeshka wrote:InsAgentSF, thank you for clarifying it for me. What makes you be able to produce $1.2 million in your first year and not $350K? It that all experience? Connections? Family member/friends with $500K accounts?

I think experience is very important. I am VERY proactive, i talked to everybody about insurance. I am looking for ways to increase my clientele every single day. I have great connections with underwriters, some of them are my personal friends. What else, be honest, assertive. Agressive but not rude. And enjoy what you do

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shemeshka · Post by **shemeshka** » Tue Apr 25, 2006 1:24 am

Thanks to all who participated. I really appreciate your replies!

darnovak · Post by **darnovak** » Tue Apr 25, 2006 3:01 pm

A broker represents the insured and solicits applications to one or more wholesalers or carriers. The agent is an extension of the carrier. When the carrier of a brokered policy sends out a non-pay notice or cancellation notice it is not notice from the broker. The broker (in most states) owes a high degree of care to act in the best interest of his/her insured/client and better communicate with the insured (documenting all) about anything and everything that is E&O related. When you are an agent, notice from the carrier is notice from the agent. When the agent's carrier sends a non-renewal notice the agent can do nothing and let the account go. When a broker's client receives a canc or non-renew notice from the carrier, the broker is legally obligated to confirm with the insured that he/she can or can not replace coverage because he/she represents the insured. In NY you cannot charge a "broker fee" if you are an agent of the carrier. If you are a broker, you must have your client sign a NY Ins Dept approved "broker fee" authorization (and some fees are limited by regulation and carrier - like the NY State Insurance Fund for WC) and keep it on file in case you are ever audited. Alhough some will tell you "not much difference between agent and broker", there is a huge legal and E&O difference - at least in NY. Get a good text on "Agent/broker legal responsibility". regards.

First Year

Broker v agent