Repeatedly, in these first two articles, it was made clear that independent agents own their book of business not because of language in their agency agreements, but because courts across the U.S. have traditionally recognized independent agents as the owners of expiration information.
What type of agent does not own his book of insurance business?
More often they do not own their book of business. Meaning, if they were to quit, the policies that they have written would stay with the employer/insurance company. An independent insurance agent works for himself and not the insurance company.
What does it mean to own your book of business?
A book of business is the list of clients maintained by someone who provides specialized professional services, such as financial services. Ideally, the professional regularly adds clients and customers to keep their book of business growing. Professionals who might keep a book of business include: Financial advisers.
What is an independent business agent?
Independent agents are insurance agents or brokers that are not employed by any specific insurance agency. Independent agents are, therefore, able to sell insurance policies from multiple companies, where they are paid on commission for each policy sold.
How do independent insurance agents make money?
Independent agents are paid primarily on commission. The more clients they serve, the more money they make. And as those clients renew each year, independent agents continue to make commissions of those policies. In general, however, independent agents receive larger commissions than captive agents.
Can you work for 2 different insurance companies?
In this case, you are not able to be hired by a different company. You can, however, get what is called a “brokers licence.” An insurance broker has the ability to team up with multiple insurance companies at once to have access to each of their products.
Can you work for 2 insurance companies?
An independent insurance agent is able to apply for appointment with multiple companies. This allows the agent access to a variety of insurance products from multiple agencies.
Is a book of business considered an asset?
Books used repeatedly and for several years are considered assets. Sets of legal, medical or accounting books fall into this category. Since they have a useful life of several years, the IRS requires such assets to be depreciated over a period of years.
What’s another way to say book of business?
Book of business is another name for an account or client list.
Why independent insurance agents are better?
They give you a choice – Independent agents represent many different insurance companies that offer a wide variety of coverage options and price points. … With their connections and their knowledge of the market, agents can often find a better value for your insurance dollar than you might find searching on your own.
Are Independent Insurance Agents good?
An independent agent can do important things for you: Agents have at their disposal the ability to quickly check prices and coverages with dozens – if not hundreds – of different insurance companies. Since rates vary widely an independent agent can very likely get you a better deal than you can get for yourself.
What is the advantage of using an independent insurance agent?
Advantages of an Independent Insurance Agent
More options mean lower premiums for you. Independent agents offer unbiased advice. These agents are your one stop shop; they offer a complete line of insurance products. Their staff is qualified and trained to explain coverage in simple terms.