Insurance Journal Forums

Will companies appoint someone that has had a chapter 7 in 2005? What if someone is buying a agency and needs appointments with the companies but had a bankruptcy in 2005? How will the companies look at it.

Thanks

Possibily - much depends upon the financing behind the purchase of the agency. If the agency is set up as anything but a sole proprietorship or partnership, a personal bankruptcy might not even hit the radar. i.e. If it's set up as a corporation, and there's sound financing behind it, a carrier probably won't look any further.

First of all you're making the assumption that the companies have to appoint a new owner. Agents make this mistake every day - just because you purchase a book or an agency doesn't automatically get you company appointments. You still have to qualify. Also, carriers run credit and background checks on corporate officers for newly purchased or newly established corps. Speak to the carriers and get the appointment process going prior to the purchase - the value of the book or agency is wrapped up in having those carriers. Bankruptcies can be explaned and accepted for the right reasons.