It sounds like a plan to me. I don’t want anyone screwing with my expirations. By the way, the bill specifically does not apply to captive agents who are tied to the company to sell their policies exclusively by contract. That is their problem, they can lie in the bed they made.
Confused, I believe it is the “Agency” they are referring to. Producers of an agency are considered either employees or Independent Contractors and most are bound by contract to the agency and therefore do not own the expirations.
Sounds to me like it’s the individual producer, but I don’t know for sure. Agent, since you live in Texas, see what you can find out. I’m interested in this.
Libby, even though “Producers” are licensed to sell in Texas, they are also tied to the Agency by contract, they sign no appointment contracts with companies so they do not own the expirations, the agency does. Why would any smart agency owner to permit “Producers” to own expirations of accounts? I pay “Producers” commission to produce business and provide a workplace, phone, internet and CSR’s to do the submissions, quotes, service the business etc. For that, the agency receives their portion of the commission. It seems to work quite well and has for years. Our CSR’s are also licensed and write some business on their own and it supplements their income. The expirations are still the agency.
I might add that Producers of the Agency are also covered under the E&O policy of the agency. That is all agency expense and no portion of commissions paid are deducted to pay the E&O premium, which is substantial. That is one of the many expenses an agency pays to operate.
Agent: Without a non-compete, those same Producers can move to another agency and take over that account with a BOR. If the new law says “Agents” own their own business, that is NOT the same thing as “Agency.” Why don’t you check it out and then post a response? You do live in Texas, don’t you?
I might add, the “contract” is with the Agency, but the Producer must also be appointed to be a licensed Agent of the Carrier. This is basic Insurance 101.
So much for a non-compete in Texas!
It sounds like a plan to me. I don’t want anyone screwing with my expirations. By the way, the bill specifically does not apply to captive agents who are tied to the company to sell their policies exclusively by contract. That is their problem, they can lie in the bed they made.
Very interesting point. Does the use of the term “agent” in the article referencing the Bill mean “The producer” or “The agency”?
Confused, I believe it is the “Agency” they are referring to. Producers of an agency are considered either employees or Independent Contractors and most are bound by contract to the agency and therefore do not own the expirations.
I agree with the Confused Owner. I would assume it means “The Agency” but who knows. Guess we’ll find out soon enough…
Sounds to me like it’s the individual producer, but I don’t know for sure. Agent, since you live in Texas, see what you can find out. I’m interested in this.
Libby, even though “Producers” are licensed to sell in Texas, they are also tied to the Agency by contract, they sign no appointment contracts with companies so they do not own the expirations, the agency does. Why would any smart agency owner to permit “Producers” to own expirations of accounts? I pay “Producers” commission to produce business and provide a workplace, phone, internet and CSR’s to do the submissions, quotes, service the business etc. For that, the agency receives their portion of the commission. It seems to work quite well and has for years. Our CSR’s are also licensed and write some business on their own and it supplements their income. The expirations are still the agency.
I might add that Producers of the Agency are also covered under the E&O policy of the agency. That is all agency expense and no portion of commissions paid are deducted to pay the E&O premium, which is substantial. That is one of the many expenses an agency pays to operate.
Agent: Without a non-compete, those same Producers can move to another agency and take over that account with a BOR. If the new law says “Agents” own their own business, that is NOT the same thing as “Agency.” Why don’t you check it out and then post a response? You do live in Texas, don’t you?
I might add, the “contract” is with the Agency, but the Producer must also be appointed to be a licensed Agent of the Carrier. This is basic Insurance 101.