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I'm planning on making a career change into the insurance business. I know i need a few licenses depending on what kind of insurance i plan on selling. The part that is somewhat confusing is being captive vs non-captive (independent).

How do you get started with each one? I'm meeting with a person from Metlife and American Family Ins, any thoughts on those two companies?

If you went the captive route, can you switch later on to being independent?

Would it be a good idea to focus on one type of insurance? P&C? Life/Health?

I'm sure i'll have more questions but this seems like a good start. Thanks for any inputs you guys have.

Metlife well there is a billion life insurance companies. Metlife has done a ton of marketing. I would go with Zurich or Allianz with pretty much the same rates. Easy to get appointed. Your other question indicates your from AZ or NV. American Family is very similar to Farmers, Allstate and Statefarm. You have several problems one of which is, you will be competing big time against agents from the same company. Brokers like me will walk away with that type of business model. Lucky we don't chase personal lines much, Very high service. Go find a broker and learn. Remember you don't own your business as a captive they do, so you had better produce

Allstate is the exception. Exclusive agents with Allstate now own their business. The same with Nationwide and I believe there are a few more companies doing the same thing.

What state are you in?

I'm in OR, and I just talked to Farmers and Metlife and they both require a certain amount of life insurance policy to be sold. Haven't talk to the American Family manager yet, but probably will sometime this coming week. With Metlife you're an employee but don't own your book. Farmers says you own book.

How do you get appointed with Zurich, Allianz, or other companies if you wanted to go the independent route?

I'm sure there's some kind of non-compete when you sign on to work with any company. I want to learn this industry but don't want to get started in the "wrong" environment for me.

I am appointed with Nationwide and many others. We Brokers own the business and can sell if we choose to any license agency in CA. In some cases this will get a new broker and appointment with a carrier that they could not have had prior to the purchase of a book. As I have done several times. I was told Allstate agents own their business "yes"

How do you get appointed with Zurich, Allianz, or other companies if you wanted to go the independent route

?
Very easy just go to the webb site and fill in the new producer application for both. They need your E & O and License. I would check out these guys as they have access to Safeco of America http://www.insurancefromhome.com and Safeco is not a captive, build your book and sell to me.

Allstate agents can sell their book of business to anyone that Allstate approves to be an agent. That includes even those with no prior experience. If you have the capital, you can purchase a book. You do have to go through the interview process, personality profiles ect...

to be considered for an appointment with zurich you have to fill out the application for prospects at ZISINTERNET.COM.

They're gonna make you commit to written premium but my commitment wasn't that high - only $50k the first year.

mcs wrote:I'm planning on making a career change into the insurance business. I know i need a few licenses depending on what kind of insurance i plan on selling. The part that is somewhat confusing is being captive vs non-captive (independent).

How do you get started with each one? I'm meeting with a person from Metlife and American Family Ins, any thoughts on those two companies?

If you went the captive route, can you switch later on to being independent?

Would it be a good idea to focus on one type of insurance? P&C? Life/Health?

I'm sure i'll have more questions but this seems like a good start. Thanks for any inputs you guys have.

Quote if only life were that simple! The best way is find an honest successful agent or broker in your area and ask them, what you need to do to succeed in their busness. If you like what you hear, then apply! It is cheaper to learn from someone, who knows how to make money. than try to succeed on your own. Talk to as many different agents or brokers and then make your decisions. Pray!

With all do respect to DFresh, do not be an idiot and go work for Allstate or any other captive of the like. Any contract in this business that does not let you sell other products is a joke. No company is that good. In fact they pretty much suck.

Porter

Porter wrote:With all do respect to DFresh, do not be an idiot and go work for Allstate or any other captive of the like. Any contract in this business that does not let you sell other products is a joke. No company is that good. In fact they pretty much suck.

Porter

Heh, one of the other independents in town used to write with both Am Fam & Allstate, and he says the same things as you do now Porter.

Porter, I know several captive agents that do really well. I know how you independent guys hate being "restricted" on what you can write, but we have no idea what this young man may be trying to accomplish in the market. I take it you've had a bad experience in the past, does not mean everyone will.

Thanks for all the replies, I know there are pro's and con's with being "captive" vs independent. Since i'm new into this market and need to know the ropes. I have to work with someone local to learn from, be it with an independent agency or with the "namebrand" companies.

My question would be, what should I look out for?

1. ownership of book of business?
2. min number of accounts per month?
3. commission scale?
4. exit strategy?

As an independent who recently broke away from "captive" status, I can definitely tell you "run, Forrest, run". Look for a large broker that will give you access to many companies without production requirements (as a new agent, you won't get the big companies such as Safeco, Hartford, Kemper, etc. to appoint you - they want large agents preferably with established books of business - and they also want an exclusive appointment). The captive companies come and go from markets, write only a limited range of risks (i.e., exiting large counties in Texas due to hurricane exposure, leaving many new agents without a market - just try to get a Safeco or a Hartford type company to appoint you if you are a Farmers or Allstate agent - been there, done that). Go to work for an existing independent or one of those brokers to learn the markets, if you can.