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Posted with permission from author
"As I stated a few weeks ago, I'm getting VERY close to going IA - Just waiting for appointments to a few more companies to come in. I am able to quote several companies now and what I am finding is absolutley astonishing to me. ( you can read my previous posts regarding the contracts and commissions paid). I have quoted a few friends/family to get comfortable with the systems. couple of examples -
My policies - 3 auots with Farmers = $1040/ 6 months home = $880/yr
3 companies were all within $10 of each other and were $750/6 months for cars and $700 for home.
My Brother - $832 / 6 months with Farmers $880 / YEAR with 2 companies and $900 with another.
Oh by the way, with the new companies I will make MORE on straight commissions also, not to mention the bonuses.
no wonder I am losing policies faster than I can say "I wish I could help"
in my EXTENSIVE research and preperations I have come up with a few suggestions and ideas for anyone else looking to make a switch.
* Find a competent contract/employee attorney in your area and determine if your
AAA is enforceable in your state. In mine the "not accepting" portion is not enforceable at all. The direct solicitation has been found in favor of agents as long as the agents haven't "salndered" the company in their solicitaion. However, the company can hold your your CV as "hostage" and make you fight for it. Choose your battles carefully.
* You need to get a new E & O policy that has Full Prior Acts endorsement on it in order to protect yourself from possilbe future lawsuits while with FIE. Their E&O will NOT cover you after you leave for something done while under contract with FIE. You can by a continuation endorsement from your existing policy for about $2400 paid in full up front.
* Get appointed to as many companies as possible that concentrate on the area of business you like to write. There are many cluster or assosciatons that you can hook up with that I found to be my best option.
* Make sure your lease states that it is 'not assingable'. This will keep FIE from being able to try to take your lease from you.
* In my state the only way to loose your phone number is to voluntarily sign a release, it cannot be taken from you even though it is in the AAA. Again, however, FIE may try to keep your CV until you release it. ME- I timed my departure so that I now have a new phone number that will ring into my existing phone number and took out a new yellow page ad. The new book will not come out until 2 months after I leave so if they want my number, fine, I will be listed in the phone book anyway.
* Send out a letter to your clients before Farmers has a chance to telling them that you are leaving FIE and opening up an IA in the same location. Let them know that you will no longer be their FIE agent and that their policies will be transferred to another agent and they will contact them. Use new letterhead with your new phone number and email so they will know how to get ahold of you. This is NOT considered a solicitation letter, just an informational one.
* The obvious - new letterhead, business cards, envelopes, email, phone numbers, bank accounts should be set up well in advance.
* TAKE OUT A CV LOAN - whatever is available. GET IT NOW!!!
they cannot hold back from you what you already have.
* do your due diligence on the companies you're going to represent. price is not everything. There are a LOT of companies out their that are VERY competitively priced that have exceptional coverages and service. Don't mislead your clients as to the quality of the new company.
* As a independent contractor you have every right to have a back-up data base of your clientele and all info that is pertinent to the insurance business. Don't get into a pissing match with the CO. about copying files. just make a data base and they have NO recourse.
I would be happy to answer any questions that anyone has about my research or would be glad to hear any other suggestions.
good luck to all"
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