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In Reply to: Re: Re: New York Life Employment? posted by Keith on April 29, 2003 at 10:25:41:
The company is STILL responsible for you actions, even when you are independent.
Why do you think that they require you to have E & O ins.??
Ken spent all his time as a captive debit collector, and knows nothing of being independent, or the brokerage business.
Keith is right! Ken is wrong!
Question - If you are an "independent broker" is there not still an agency relationship with the insurance company? I have had many instances where independent P&C agents have obligated the company to pay when they would not have, just because they are acting as fiduciary agents of the company.
: The same is true for Independent Adjusters if they make statements or indications that a claim is covered when it is not. They may obligate the company to pay when they would not have.
: The difference comes into play when the insurance company takes action against the agent. If you are a captive, I assume they will take some action, up to perhaps firing you. If an independent broker/adjuster, they may make a claim against your errors and ommissions coverage. Depending upon how much you are worth to them in business, they may cancel your agreement with the company.
: Bottom line is to watch what you say about coverage and policy provisions and to learn as much as possible about what you are selling before selling it. Many P&C agents have no clue what they are selling and get in trouble as a result...
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: : : I am currently going through the interview process with New York Life. Have not interviewed at any other companies. I am not familiar with the nuances of the industry in terms of employment advantages, disadvantages. I read some postings here talkining about captive agents?What should I look for? Thanks.
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: : The basic roots of your question can be answered quite easily.
: : As a "captive agent" with any insurance company you are limited to only offering to the public the insurance products offere to the public in the company's insurance portfolio or policies not in the company's portfolio that the company has a working agreement with a different company to make available to the public through the company.
: : The company will then receive a override commission on those policies also through the working agreement.
: : As a "captive agent" the law in most instances will hold the company responsible for any misstatements you may happen to state as you are a spokesperson for the company.
: : On the other side of the coin, if you are an Independent Agent holding a brokerage agreement only with the company, you can broker any companies insurance products provided you have an appointment with the company.
: : In addition, as an "Independent Broker", the company usually will not be held responsible for any misstatements you may have spoken and only held responsible for what is written in the insurance contract policy.
: : "Captive Agents" usually have a great of personal perks offered to them by the company such as Group Life and Health Insurance, Company Retirement Pensions, and in-house insurance training.
: : There are those persons who begin their careers as "Captive Agents" and as soon as they have taken advantage of the learning process they elect to leave the company and become a true Independent Broker.
: : Glad to be of an assistance to you.
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