Insurance Journal Forums

A fellow agent approached me about having his wife getting licensed. He wants to have her get appointments so he can place busiess that our company won't take or is way out of the ballpark on price. He wants me to partner up with him so we can get another office open. Obviously I want to make sure I place as much business with my company, I do however come across a lot of business that I can't write with my current carrier. Placing it outside with MGA's or brokers just makes it more expensive after down payments, fee and taxes.

Anyone out there have a setup like this? Any reccomendations? Bad Idea?

Thanks

It sounds like you work for a captive company (Farmers, State Farm, Allstate), am I correct? The difficulty will be in having this person's wife get enough appointments with carriers (not MGA's) and be able to show a good flow of business to support those appointments.

Several MGA's like AmWINS do cater to direct writer agents, and have competative programs. You might want to talk with them first. Setting up a separate agency, with the added costs for office space, insurance, etc. could make this venture somewhat cost prohibitive.

I understand that you work for a "CAPTIVE", however it is not fair to independents that you cheat the system! Try approaching an existing independent agency in your area to use when you can not place the risk with your company.

Another thing to keep in mind - You are putting your contract with your company at risk by setting your wife up as an independent.

I don't know about you, but I like to sleep at night!

Thanks for the advice. Your correct, I do work for one of the big 3. I am not looking to cheat the system or get in trouble. As many captives know, our hands are tied a lot of the time, whether it comes to markets not available or pricing. I am looking for the best way to be able to offer more services. I do currently work with an MGA but sometimes the initial fees kill the deal.

I will keep doing research. Thanks.