Corporate Body Snatching and Client Rustling - How Insurance and Investment Companies Steal Clients

Nearly everyone has some sort of insurance or investment product. It may be a policy for a car simply to acquire a vehicle license within a state, coverage for a home to satisfy their mortgage company, to protect against a fire in an apartment building, or a retirement fund in the form of an IRA or annuity. In all these examples, people are clients who are paying money for a company to help manage the risk of disaster or the benefit of a secure future. The profits for the insurance and investment companies are in the premiums paid or the dollars invested. Once the clients are acquired, money flows in like clockwork. The largest expense for the insurance and investment companies is finding the clientele to profit from. That's why salesmen or "agents" are hired.

In an ideal capitalistic system, everyone earns a living based on the quality of their labor. Agents are not compensated for their efforts based on the number of clients they bring to the company. Their commissions are calculated from the amount of insurance coverage purchased or the total of monies invested in the company. The agents only make a profit, and thus a living, when the commissions exceed the amount of expense and effort expended to gain those clients. Many times the survival of the agents depends on how well they can serve their current clients' needs by selling new products, or transferring or replacing existing ones. Farming the current clients is always more profitable for everyone involved.

Because the failure rate of agents is high, few insurance or investment companies want the liability of licensing and training inexperienced sales staff. It takes years and money to train a good agent. "Good" to many companies means someone with selling skills who knows how to keep them out of trouble with state and federal regulators. Many companies hire employment firms to recruit experienced agents who are dissatisfied with their current company and are open to a new employment opportunity. Agents who decide to accept that "opportunity" find that it comes at a cost.

When these types of insurance companies hire an experienced agent, they demand contact lists of one hundred to one thousand names, addresses and telephone numbers and income levels to show that the agent has a "worthwhile" pool of prospects to draw from for sales. The companies rarely supply any prospects of their own and, if they do, they are worn out leads from people who have been called so many times that they don't answer their phone when an insurance company displays on their caller ID. Viable prospects are worth far more than the agent, and are what the insurance companies really want. The companies know that clients who trust their agent are likely to follow them wherever their agent goes.

Agents leave their parent company for many reasons. Company downsizing or buyouts over the past ten years have been big ones. The most heavily recruited agents are those who own their own agency or have no non-compete agreement, which would bar the agent from taking the clients with them when they left the company. Usually, there are many incentives offered to entice those agents to come on board, but unless those promises are put in writing, they usually disappear after all of the agents' clients are transferred to the new company. If the agents complain that the reality of employment at the new company isn't what was promised, they may be reminded that they signed a non-compete agreement, all the clients transferred are now company-owned and that the company may terminate their employment for any reason they choose. When comparing the cost of a few more ex-employees collecting short-term unemployment benefits to the value of a large body of long-term clientele, the company goes for the premium income every time.

As the agent is contemplating the wisdom having moved to the new company, new mandatory sales quotas with threats of lowered commission rates miraculously appear. The quotas show that all the agent's talents for effectively serving his or her clients' needs and working in their best interests are not the new company's primary focus. If unattainable quotas don't drive the agent out, the company reserves the power to cut commissions, effectively starving the agent. If the agent decides to leave the company, they are reminded of the conditions of the signed non-compete agreement stating that they are barred from any contact with their former clients for a period of one to two years. All of the agent's expense and labor of acquiring those clients is lost.

The insurance and investment companies that follow the shady process of client body snatching have little interest in long-term employment of agents. After stealing the clients and disposing of the agents, the clients are assigned to a customer service or sales department, often populated with newly licensed personnel having intensive sales training, but questionable product knowledge. At that point, the clients' interests are rarely served and are managed only for the profit they provide. The companies can maximize their income and no longer have the liability of paying commissions and renewal fees, or health and retirement benefits to the newly discarded agents.

Only the insurance and investment companies win when clients are stolen from good agents, and the sad thing is that the clients rarely know or care about the loss. Some even think there was something wrong with the agents when they disappear. Even worse, fruitful employment opportunities for the agents are less likely now because they are barred from contacting their former clients and must rebuild their clientele anew. Rarely does anyone care about the welfare of the lowly agents who have been robbed of their livelihood.

What is Collision Insurance Coverage?

When you purchase your first new car, choosing your insurance coverage is the next step in meeting your legal obligations and making sure you are fully insured. What is collision insurance after you looked far enough to realize that are different forms of coverage.

The most basic type of car insurance is called collision. If you are involved in a car collision a collision policy is written to provide coverage.

You should know what the term collision means, and what forms are covered or not at what forms of collisions are covered. Inaccurate assumptions about the obligations met by the insurance company as opposed to those met by the owner of the car can be caused by a failure to understand the limitations imposed on collision insurance.

Collision insurance offers coverage in the event of an accident which involves your car colliding with other motor vehicles. Collisions with animals, buildings, architectural features like walls and garage doors, among other things, are not covered by many policies. Definitely there are exceptions to coverage and they are properly described by collision policies. The importance of collision policies is their ability to deal with damages to vehicles and medical costs directly related to the accident, unfortunately they do not cover future damages.

Any coverage covers collision for that it is sheer essential a coverage. The policy will ensure that if there is a minor accident, like a fender bender or a t-bone, you'll have at least the minimum coverage for repairs and medical bills. It is a famous entry level insurance and often very cheap.

People tend to buy package insurance that offer more options. Coverage will be far less restricted and the circumstances covered will be less likely to be exempt from payment, and the premiums for these plans will be higher.

In some states you must purchase insurance for your car before you can drive on the roads. A lower priced collision policy is offered by many companies. A collision policy with other options is desirable by many. In order to claim indemnity to a larger extent, some contend for extra benefits.

Before making a purchase take the time to determine the legal requirement for insurance in your state, get quota on various options open to you,and make sure you are getting exactly the coverage you want within the limit of the law.

Cheap Car Insurance Online - How to Get Inexpensive Car Insurance by Surfing the Internet

Getting insurance on your vehicle is no easy task these days. Going through in individual broker can cost you an arm and a leg and they usually double as a sales person. Most sales people don't really have much honesty and integrity as they have a sales quota to meet and will usually bypass their moral compass to try to make you buy from them. Therefore, the best place I have found to get the lowest priced quotes on an auto insurance policy is on the internet. The beauty of the internet is that when car insurance companies take their business online they usually start saving instantly on their expenses which means that will usually pass those savings on to you, but where online do you start searching for the absolute lowest prices car insurance rates?

The answer to this question is very simple. You need a website that will will enable you to pool together the lowest priced quotes from the top auto insurance company. These are called online auto insurance comparison sites. Once you visit such a website they will usually make you fill out a short 1 page form and within minutes you will receive 5 discounted auto insurance quotes from some of the top car insurance companies in the nation. You have no bypassed these sales people by going online and getting these car insurance rates delivered to you almost instantly. These car insurance comparison sites are always free, and if you see one that wants to charge you to receive price quotes then these are fraud sites. They will also never ask you for any credit card information or your social security number. Now that you know about these sites, you have a legitimate and consistent way of saving up to 40% by purchasing cheap car insurance online.

Why Does Your Car Insurance Quote Increase After an Accident?

Car accidents usually result in an increase in insurance premiums. Even if you are not responsible, your insurance company will have to incur some costs. There is an increase in car premiums and policy quotes because the accident will be rated against your coverage. There are a number of types of insurance coverage that can include collision, personal injury protection, and medical coverage. If you are found 'at fault' for an accident, coverage such as personal liability and collision will cover you, your vehicle, and personal injury to the other driver. Often, if you have just one accident, you will see an increase in your insurance quote.

Car insurance quotes will increase because you will be considered a high risk driver. The premium will reflect the nature of the accident and the costs associated with the accident. Insurance companies will usually charge 'points' to your policy. Depending on the insurance company, these points will be charged to your policy for a certain period of time that usually ranges from three to possibly seven years. If you are in an accident that was your fault, the insurance company will consider that you are a high risk of having accidents in the future and increase your rates. You will also receive higher insurance quotes. The length of time between an accident and your quote and premiums decreasing depends on a provider's policies. As well, you may have to pay a higher deductible for the insurance.

Another reason why an accident can increase your premiums when you are 'at-fault' in an accident is that there are some companies who will not insure you. When there is less competition for your business, then there is less incentive to give you a good deal. As a result, your insurance quote will be higher. When you add the insurance 'points' into the mix, it is easy to see how an accident can become very expensive. If you have a faultless driving record, it is unlikely that your premiums will increase after an accident that was determined not to be your fault.

You can normally expect a rate increase of between 20-40%. This increase is based on the Insurance Services Office's (ISO) criteria of raising a premium after an accident. According to the ISO, for multi-car policies, the surcharge is 20 percent of the base rate, and for single-car policies it is 40 percent. It is important to remember that there are other factors taken into consideration after an accident such as your age, gender, and driving record. These factors will affect how high the percentage increase will be.

The increase in premiums is not done so that the insurance money can get their money back, but is based on the risk that you may be involved in another car accident. Each insurance company has different policies and standards, but they look at your chances of getting into another accident. The number of accidents that you are involved in also increases your insurance premiums.

Some companies will absolve past accidents after a set period of time has expired. This can be two years, or as much as five years, but the period will vary depending on the insurance provider. Basically, you have to show the insurance company that you are no longer a high risk driver.

The best way to avoid high car insurance quotes is to avoid an accident. You can do this by practicing safe driving. One car accident can seriously impact your car insurance quote and the premium that you will pay.

Insurance Agent

Insurance agents are the insurance company's front liners to its clients and potential markets. They are the ones who search for customers, aid them in selecting the right insurance products to meet their needs, and provide continuing support.

Often, being an insurance agent is part-time job, something that career people do on the side to earn extra income from commissions. But while it is work that can be done on leisure time, insurance agents are also tasked to reach monthly customer quotas. A person?s sales and marketing abilities come into play.

Most insurance companies train their agents to give them full comprehension of the products they sell. But while seminars and training are available for recruits, insurance companies often prefer to hire college-educated applicants. This is because a background in finance and accounting is necessary to be successful in selling insurance policies.

Previous experience in sales is, of course, a big boost. A working knowledge of the use of information technology, such as the Internet and computers, is necessary to ensure that relationships with clients are kept intact. An applicant who has a background on presentation skills, sociology and psychology, may already have an edge over other applicants.

An insurance agent may have control over his time and schedule, but he has to travel a lot to meet clients. Sometimes, he may have to work weekends and past normal office hours just to be able to present to potential customers. Most often, these presentations do not necessarily result in clients actually buying a policy.

Before insurance agents can get into the field, they must be fully licensed and must have passed the necessary exams to ensure their comprehension of financial policies. There are different exams for different kinds of accreditation.

Insurance Company Home Office Websites Fight Against Their Captive Insurance Agents

Insurance Company home office websites should be designed to assist inquiring people and insurance company agents. However, regarding their captive insurance agents, these home office websites are not set up right. The insurance company home offices wants the business direct, thereby depriving their own captive insurance agents.

Upon analyzing and reviewing over 200 annuity, health, and Life Insurance Company home office websites, I discovered more than anticipated. I assumed finding a user friendly website detailing the company history and their portfolio of products. Then a section for devoted to captive insurance information. Lastly I thought there were be a form would exist where the visitor could inquire about a product.

MOST HOME OFFICE WEBSITES HAD THIS, BUT WITH A TWIST

The inquiry form was there alright. This inquiry should have been forwarded to the captive insurance agent in the hometown area to immediately follow up on. Almost an ideal agent lead. The perfect opportunity for the insurance company to prove it cares about its representatives future.

Instead on over 40% of the web sites the Insurance Company works against its captive insurance agent base. They collect the necessary information on the prospect and attempt themselves to make a quick online sale. This is truly the case of insurance companies biting the hands that feed them. They are thoughtful enough though to send the local agency this "lead" if they failed in selling the prospect themselves.

LET'S DIG DEEPER, UNDERNEATH THE SURFACE PRESENTED

Now put your sales manager under the microscope. How many times a week does he/she go out with you to assist on closing a sale? Check the responsibilities your sales manager has. Some are allowed to go out on their own appointments to earn commissions to enhance a base salary. It is simple to conclude who would be handed a quality lead. A manager who can make extra commissions will be looking out for number one, himself.

For the first time actually examine the contract you were suppose to read before signing. Check the provision written explaining renewals. Is the insurance company providing lifetime renewals? This means that each year your client pays premiums to keep the policy going, you are rewarded. It is very doubtful you have signed with a company offering this.

The company has put the golden handcuffs on you from 3 to 10 years or even lifetime. This means that if you quit, any renewals immediately cease. Same goes if you switch to another insurance company as a captive insurance agent. All goes to the 1st company. The longer you stay, the tighter the insurance handcuffs get under your skin. This is a well planned defense maneuver the insurance company applies on all agents. Either you remain under slavery, or you fail and surrender future benefits. Renewals yearly become a thicker carrot of addiction.

Income subsidies are a trap allowing you to scrape by with company extra pay if you meet your set monthly quota. This is applied only while you are in your training stages. A true hands on training is very limited, then you are thrown out to survive on commissions (and renewals) only. Once again the company works against you. On a life insurance policy, they may pay you 55% first year commissions. If you were to place a similar policy with an outside carrier you would likely receive at least 65% to 70% commissions.

THE CHANCE TO MAKE YOUR ESCAPE

After around 4.5 years, enough determined agents are convinced they can do better without the assistance the company fails to provide. Going independent or semi-independent to write with any carrier is a route over two thirds of experienced agents take. Half of them become fully independent breaking the barrier of the insurance company to directly compete with them or control them. The are free from the insurance company home office website and all the other factors working against them.

Suddenly seeing your commission rate jump from 55% to 90% is worth letting the insurance company take all your meager renewals. Plus now your renewals may even be lifetime. It is not usual for an agent to keep getting monthly renewal checks for 10 to 20 years. This is despite the agent is no longer producing cases for them, or entered a new occupation.

The choice is yours, let the insurance company control you, or control your own destiny. If you have the selling skills, confidence, and ability to acquire leads, the answer is fairly obvious. Transform from a captive insurance agent into a respected independent producer.

Ways To Cut Your Car Insurance Costs

One of the ways to cut the cost of your car cover is to comparatively shop on an average of every two years, maybe even annually, if rates have changed quite a bit. Finding a policy that will cover all your needs but not cost you your life's wages is possible by shopping online for quotes.

Contacting local agents as well and talking to the experts that can guide you to the policy that fits your needs and your wallet is one of the best ways to save on your car cover policy.

Services You Will Need Covered;

When shopping for your next policy, there are some services that you will want covered as part of the standard agreement and then there are extra cover policies you may want for other circumstances that may require a little extra cover, such as transporting a sport vehicle trailer or even an equestrian trailer. Depending on your needs and how much cover you want, 'just in case' are the terms that will determine the cost of your cover.

Here is a list of some of the services and cover that you will want to look for:

1. As a standard service, you will want a replacement car should anything happen to your vehicle.

2. Does the policy you are considering cover the replacement car if yours is damaged beyond repair or stolen?

3. Will there be an extra charge to insure the replacement car?

4. Does the standard price of the policy cover legal protection should an accident occur that involves your car but you are not at fault? This type of policy will allow you to retain representation to sue the offending driver for damages and other types of costs, should they occur due to the accident.

5. Are there any voluntary excess for accidental or malicious damage? Numerous companies provide policies that have a compulsory voluntary excess and sometimes a voluntary excess. This refers to the amount of money you are willing to pay in the event of an accident. The more cash you are willing to pay out of pocket, the lower your cover premium.

Legally, it is required that each driver have cover for the car they are driving and it only makes sense for all drivers to have cover should something unforeseen happen. There are many levels of insurance to choose from and before you choose, do your research and some comparative shopping for car insurance that will cover all of your needs, yet not cost you so much it is out of reach.

Comparative shopping is essential in reducing the cost of your car insurance. You can compare quotes easily and quickly by using the different websites on the Internet. There is a considerable savings to be found by doing comparative shopping. One secret to getting a lower rate for your policy is to call on Thursdays before the cut off on the quota that these representatives must fill each week for the insurance company. They will dig for deals for you just to meet their quotas.