Build A Massive Insurance Agency, Back by Popular Demand - First In An Insightful Series!

Build a massive insurance agency is the "How To" question on the minds of all new and newer agents and brokers on the planet! I have covered some of the facets in previous articles, now let's discover more facets and obtain the knowledge that it takes to achieve your dream. I will take you through the steps that you must understand to build that massive insurance agency, and the trappings of this massive insurance agency - did I mention a massive income?

I built a massive insurance agency that produced a massive income over many years, the journey was fun but also had many challenges that had to be overcome. Understand that after the first year or so, you can't do it alone. It takes licensed agents on your team to win and win big! But here's one of the challenges you will face, your team member agents are going to expect and deserve a part of the "house commissions". You begin by choosing the best agents you can find, people with a positive and winning attitude and wanting to be part of your team! I want to be very clear on this because each and every one on your team represent you and what you stand for, so choose carefully because your future depends on it!

Here is one of my very successful facets that helped me build a massive insurance agency and a massive income. Purchase a erasable white board around 3 by 5 feet and hang it in the back of your office but in view of your team members. We had fun with this one, I offered a paid trip to Las Vegas Nevada - a great room and a generous amount of money for dinners and drinks - the works! Being a goals oriented guy I did not limit the contest to just one winner, any and all team members could go to Vegas on "the house". Think about it - if one team member qualified for the trip, it increases the gross income of the agency, they win and you win! I had one contest where I sent my entire team and their spouses to Lake Tahoe - it cost me a bundle and I began to wonder if I had finally lost my mind!

Well - after coughing up the money for the Lake Tahoe trip, the commissions started rolling in from my teams sales - and I realized I was a made a great move. I built a massive insurance agency and a massive income to go with it - and so can you!

Florida Adjuster License: Decoding the 5-20, 6-20, and Other FL Adjuster Licenses

For Florida residents interested in obtaining or learning more about the Florida adjuster license, it may be helpful to unpack and simplify the multitude of license categories and types that are available. This will help ensure the most efficient path to getting precisely what you want by the most direct means available.

At the broadest level, there are three general Florida adjuster license categories - the 6 series, the 5 series, and the 3 series.

The 6 Series - Company Adjuster Licenses

The 6 series refers to license types that are held by Company adjusters. What is a Company adjuster? The Florida Dept. of Financial Services defines a Company adjuster as "any person employed on an insurer's staff of adjusters or wholly owned subsidiary of the insurer". In other words, an employee of an insurance company - a "staff "adjuster as the position is sometimes called. And in order to qualify for this license type, you will obviously need to be employed by a company. The following 6 series types, which will be discussed at length below, are available - 6-20, 6-44, 6-21, 6-24.

The 5 Series - Independent Adjuster Licenses

The 5 series refers to license types that are held by Independent adjusters. Independent adjusters are adjusters who are "self-employed or associated with or employed by an independent adjusting firm or other independent adjuster". Note that an independent adjuster may be an employee, but as long as you are an employee of an adjusting firm rather than an insurance company directly, you are still considered to be an independent. Most adjusters interested in handling that particularly lucrative type of claims resulting from catastrophic events (e.g. Hurricane Wilma), would be seeking one of the 5 series licenses. Also noteworthy, unlike the 6 series, you do not need to be employed or contracted for work at the time you apply for the license. Like the 6 series, the following types are available - 5-20, 5-44, 5-21, 5-24 (detailed explanation of each below).

The 3 Series - Public Adjuster License

The 3 series refers to license types held by Public adjusters. Public adjusters are categorically different from either Company or Independent adjusters in that they represent the insured rather than the insurer. FLDFS defines a Public adjuster as follows:

...any person who for money, commission, or any thing of value, prepares, completes, or files an insurance claim form for an insured or third-party claimant or who for money, commission, or any other thing of value, acts or aids in any manner on behalf of an insured or third-party claimant in negotiating for or effecting settlement of a claim or claims for loss or damage covered by an insurance contract or who advertises for employment as an adjuster of such claims, and also includes any person who, for money, commission, or any other thing of value, solicits, investigates, or adjusts such claims on behalf of any such public adjuster. Public adjuster licensing and license compliance is handled differently than Company and Independent licensing and, notably, requires you to be bonded prior to licensure. At the time of this writing, you must complete a year long Apprenticeship (license type T31-20) and then pass the state exam to earn a full 3 series license.

As the 3 series of licenses are a different breed, we'll deal exclusively from here on with the 5 and 6 series adjuster licenses. Let's look at the types:

All-Lines: 6-20, 5-20

The 6-20 and 5-20 are both All-Lines licenses. All-Lines is exactly what it sounds like - each and every line of insurance. The 5-20 Independent and 6-20 Company All-Lines licenses qualifies you to handle the full range of claims for Auto, Property & Casualty, & Workers Compensation.

Property & Casualty: 6-44, 5-44

The -44s refer to the Property & Casualty adjuster license types. Property & Casualty would include residential and commercial property and liability claims but would exclude Auto, Health, and Workers Comp.

Auto: 6-21, 5-21

The -21s refer to Auto and specifically Motor Vehicle Physical Damage and Mechanical Breakdown. If you plan to focus exclusively on handling claims for damage done to vehicles due to accidents and weather events (e.g. hail), then this is your license.

Workers Comp: 6-24, 5-24

The -24s refer to Workers' Comp claims adjusting. Workers' Comp adjusters determine benefits to be awarded to employees injured in the workplace.

Which Florida License Should You Get and How?

First, determine the series. If you've just joined an insurance company as a salaried employee, then simply follow their lead for which 6 series license to apply for. If, however, you are looking to break into the independent side and either are or are not employed or contracted to work as such, look for something in the 5 series. There is no reason not to apply for your 5-20 adjuster license as its just as easy to obtain as the 5-44, 5-21, or 5-24. It gives you the greatest flexibility to find your claims niche without limitation.

If you first obtain a 5 series license and then obtain full-time employment status with an insurance company, you will be able to switch your license status to the 6 series through a relatively simple process that does not require further examination or coursework.

Bottom Line: Whichever of the 5 or 6 series licenses you choose to pursue, there are several Florida approved Designations (online or classroom) that allow you to immediately obtain licensure without further testing or coursework. Such Designations will typically represent the quickest and surest means to get the right Florida adjuster license for you.

Generating High Quality Insurance Leads in the Real World

New technologies make life easier and more exciting. When it comes to business, we are constantly searching for the latest and greatest to make sure that we stay ahead of our competition. Ironically, when we become consumed by this fear of falling behind, we forget about the most tried and true traditions that established our industry in the first place.

Now let's take a look at lead generation in the insurance industry.

Anyone who sells insurance knows that if you cannot high quality leads, then generating sales is going to be close to impossible. The internet has done wonders for us as insurance agents looking to generate new high quality leads; however we should not let ourselves get so distracted that we forget about generating leads out in the real world.

In order to generate an endless stream of high quality insurance leads and have buyers hunting you down (instead of the other way around) you need to combine technology with tradition.

So how do you go about doing this?

* First off, you want to make sure that you have a fully functioning website. Make sure it is designed and crafted by a professional who is an expert in SEO (Search Engine Optimization).

Keep your website clean, simple, and easy to navigate. If it takes too long for potential customers to find the information that they need then they will go to someone else's website and buy from them instead.

Also keep the imagery on your website light in order to prevent people from waiting when they try to open it.

Find a reliable lead generator online, sign up and follow through with the instructions.

* Secondly (this is the part that most of us forget), you want to go out into the real world and start making connections.

When I say connections, I mean REAL connections. Don't treat everybody you meet like a lead. Make friends and serve your community. Go to church and get to know the people in your neighborhood. Go to your kid's baseball games and get to know the rest of the parents. Join a local bowling team and socialize with all the other teams in the league. The possibilities are endless.

Make friends with these people and treat them well. Do favors for them without expecting anything in return. Listen to them talk and take a genuine interest in their lives. See what you can do to help.

Sooner or later everyone is going to ask what you do for a living and you can tell them. "I sell insurance, yeah, if you ever need anything just let me know and I will hook you up, we've got some amazing deals going on right now". Then you drop the subject and ask them a question about themselves in order to turn the focus back onto them. Wait until next time to give them your business card.

It won't be long until everyone your community knows exactly who to go to when they need insurance. These people will be your most loyal customers and they will generate the HIGHEST quality insurance leads for you when they recommend you to all their friends and family members.

You will not only make a lot more money, but you will also feel good knowing that you are a valuable member of your community.

Key Words That Can Excite A Financial Advisor's Prospect

I was at a BBQ and over a drink got into a conversation with two people about insurance and investment. The conversation raised the issue of where you go for financial advice, which developed into a rather interesting discussion. I encouraged the debate and treated it as a research opportunity.

Of note was learning about the importance of key words in motivating consumer behaviour - which I will explain. By way of background, the two I talked to have the profile of almost perfect clients. They both enjoy well-above average incomes and high levels of net personal wealth. They were aged 54 and 49 (I asked). The older one is a successful accountant while the other owns his own business and also sits on public and private boards.

Sorry to say, but both had somewhat cynical views about advisors in general, recounting stories of 'idiots' they had met. These were some of their comments. "I don't trust how they make their money. I have heard that they can make 150% on the premiums of some insurance products." "I hate the way they have to sell you something to make money. That must influence their advice." "I've got four life policies. Two of them are more than 25 years old. I should cash them in."

Clearly they were somewhat ignorant as to the way advisors work. Which means that neither of them have proper financial advisors in their lives. The real value from the conversation however was their reaction to some specific words. When I talked about how many advisers work, it was key words that made the biggest impact. Notable among these were:

"Audit." I suggested that a good adviser would be able to undertake an 'audit' of their financial lives, including their investment and insurance portfolios. This instantly got their attention. The word 'audit' has a powerful meaning to business people.

"Plan." They both felt that advisers had tried to sell them individual products, not any sort of financial plan that put everything into perspective.

"Fees for advice." They were both impressed with the idea of paying a fee for a financial plan, regardless of whether the recommendations were taken up. This seemed to overcome the issue of a plan that might favour an adviser's remuneration. Interestingly the accountant said "So, what would you pay? A couple of grand?"

"5-step process." This really hit home. I explained that a financial plan looks at the 5 key aspects of your financial life and how it was almost impossible to separate them. They asked what the 5 steps were but I told them to ask their advisor. As you can guess the accountant in particular loved the word "process." He had never thought of it as a process before, just a sort of 'sell-as-much-as-you-can' approach.

Watch the reactions of client when you talk to them. Are there some words that seem to have a considerably greater impact on them? There will be, it's just a matter of recognizing them.

Know The Kind of Life Insurance Agents You Deal With

A majority of people today use insurance agents to acquire insurance policies for their homes, vehicles and life. When trying to acquire life insurance, it is especially important to know the kind of agent you are dealing with. A good life insurance agent should be trustworthy, available in a moment's notice or whenever you need them, knowledgeable in all aspects of this field of insurance, and professional as well as ethical in every respect. A good agent will supply you with essential details without you having to ask for them. Even after interviewing the agent and you are still uncertain about certain issues, a good one goes out of their way to get you accurate answers and rest your doubts.

Before your interview with an agent, you should list down any questions that you wish to subject the agent to, so that you do not forget something vital. A competent agent will not just give you a quote and send you on your way. You should expect to be asked many questions about your lifestyle, family, health conditions and financial status. The acquired details are then used to determine your insurance needs, and thus used to get you the most suitable life insurance quotations.

You know you have a great insurance agent when you are under the impression that all their efforts are put towards meeting your needs. A good agent will keep searching until he finds you affordable premiums with good coverage. There are often multi-policy discounts available, which give you cheaper premiums if you choose more than one coverage type at the same time from the same insurance company. The agent will put extra effort in getting you these discount offers, as taking out a loan on the family farm in order to afford the policy is not an option for the majority.

When discussing your policy with your agent, make sure they are giving you the full run-down. This should include what your coverage exactly entails, how much your premiums will be, penalties, late fees and any processing costs that may be involved. Sometimes, people are shocked when they get their first bill in the mail and see how hefty it is. You do not want that person to be you; so make sure that you are well-informed.

Keep in mind that when an insurance agent quotes you a price for a coverage, they are quoting it based on your latest available personal details. If your situation changes, for example if you quit smoking or if you get a salary raise, be sure to notify your agent. Smoking and other unhealthy habits cause your premiums to rise and stopping their pursuit consequently lowers the premiums. On the other hand, increment of income can enable you to get a long-term life insurance coverage, such as whole life.

When your consultations with competent life insurance agents come to an end, you should be able to feel relieved in the knowledge that your family will have financial security upon your death. That is a feeling that everyone should have. If your agent provided you with excellent service, make sure to tell your friends and neighbors so they can also reap the same benefits as you. Good agents are sometimes hard to come by.

The Four Fundamentals of Starting an Insurance Agency

Striking out on your own as an independent insurance agent can be a fulfilling, exciting and lucrative experience.

Insurance is a relationship business. There's satisfaction in protecting individuals, families and businesses from some of life's calamities. Insurance sales can also be lucrative. By recruiting associate agents, you build residual wealth while offering income opportunities to others. And the freedom and flexibility as are unparalleled.

As with any commission-based business, you must get your agency off the ground quickly. Following are four fundamental steps that will give your insurance agency a strong start:

Obtain the Necessary Licenses (if new to the business)

Books, online courses and training professionals can help you prep for your state's insurance exam. Separate exams are required for life and health and for property and casualty. Uniform licensing standards and reciprocal licensing between states are becoming more common, allowing you to get licensed in more than one state fairly easily.

Part Ways Gracefully with Your Existing MGA or Captive Agency (if already in the business)

Determine whether your agreement included a non-compete clause. (An employment law attorney can advise you on whether it is actually binding. Many times, such clauses are not.) Find out whether you own, and can take with you, any portion of your book of business. If so, this becomes a good foundation for your own agency.

Set Up Your Own Agency Business

Decide on an official business structure (corporation or LLC) and file the appropriate paperwork with your state. Find an accountant to help you with commission breakouts and other bookkeeping aspects of your business.

Select the Right Master General Agency (MGA)

MGAs provide administrative, marketing and sales assistance to hundreds, sometimes thousands, of independent agents. A good MGA can help you grow your businesses faster. That's because they provide access to large, well-known insurance companies and top commission rates.

Be selective about who you partner with. A quality MGA should offer you:

Broad product portfolio, with multiple insurance lines to meet your clients' personal and commercial needs. Contingency bonuses, paid to the MGA by carriers for producing large volumes of business. Not all MGAs share these bonuses. Confirm the MGA's willingness to split contingency bonuses with you, or find someone else who will. "Same team" philosophy-The MGA should not allow agents within the same geographic area to compete against each other. Your fellow agents should feel like teammates. Carrier appointment paperwork-With some applications running 40 pages in length, your MGA should handle this cumbersome paperwork on your behalf. Marketing support/digital and traditional-Leading MGAs provide turnkey systems for both traditional marketing and digital marketing (e.g., e-marketing, social media, website development, SEO and pay-per-click campaigns). Business coaching-MGAs have a wealth of industry expertise, and they should be willing to share that with you. They can help you avoid start-up pitfalls and maximize your income. Fully integrated technology-The best MGAs have invested in agency management systems that make you more productive. Their system should include a comparative rater for quoting multiple carriers, e-mail marketing system, lead generator, online training and more.

With the level of automation and support available today, there's never been a better time to be an independent insurance agent.

About the Author: Pamela McCann is partner and chief operations officer of Alliance Insurance Group, an independent insurance agency based in Golden, CO. Her current responsibilities include streamlining Alliance's insurance agency management systems. She also spearheads Alliance's Master General Agency initiative, recruiting independent agents who are interested in starting an insurance agency. Throughout her 30-year career, McCann has held a variety of corporate financial roles, ranging from chief financial information officer to controller. In those roles, she was responsible for negotiating business insurance and employee benefits. She is a licensed producer in the state of Colorado.