New Independent Agent benefits of having Surplus lines authority

Your response to industry hot topics.

Moderators: Josh, independent guy

Post Reply
Jedwardnorton
Insurance Journal Fan
Posts: 2
Joined: Thu Oct 26, 2017 12:34 pm

New Independent Agent benefits of having Surplus lines authority

Post by Jedwardnorton » Thu Oct 26, 2017 1:26 pm

I have started an agency with a partner of mine who has a asset wealth management firm in So Cal with about 8,000 clients (primarily 401k) who wanted to do this because he learned it would be more financially beneficial now that he has his own group having left a major investment broker.

Nevertheless, he has posed several different scenarios pertaining to his clientele and their insurance needs whether it be professional insurance to extraordinary umbrella policies, and extensive home and yacht policies. I am wondering if having a surplus line of authority for our agency under yours truly would make sense? We will also be looking at quite a bit of surety, fidelity, and fiduciary bonds starting out as well.

Any help on this is much appreciated!

INTLXS
Insurance Journal Addict
Posts: 152
Joined: Tue Oct 15, 2002 6:25 am

Re: New Independent Agent benefits of having Surplus lines authority

Post by INTLXS » Mon Oct 30, 2017 10:23 am

Trying to understand what you are looking to do. You have access to surplus lines authority through wholesale brokers who have contractual relationships with surplus lines carriers. Many of those carriers will not appoint retail agents so having the licensing will not get you the contracts. Having a surplus lines license just would allow you to do the surplus lines tax filing instead of the wholesale broker.

RMCKIN
Insurance Journal Fan
Posts: 2
Joined: Mon Oct 30, 2017 1:02 pm

Re: New Independent Agent benefits of having Surplus lines authority

Post by RMCKIN » Mon Oct 30, 2017 1:17 pm

I believe this is something that could be done. I can possibly help you connect with the markets that could facilitate this for you, either through Surplus Lines or on an Admitted basis.

Regards,

RJM
Marketing & Consulting Services
909 436 8703

Post Reply