Insurance Industry News from ProgramBusiness.comFinding the Best Producers
How do you as a General Manager, National Marketing Organization officer or Insurance Company marketing director, find the best producers to sell for you?
There’s the story of a Marketing Director who said the company didn’t have any guidelines to selecting good quality producers written down, but that all the field managers “know what we want.” To test his own theory, the next conference call he had with his field managers, he asked them to tell him what they looked for when they were interviewing new candidates for appointment.
The extreme variety of responses he got from his handful of field managers prompted him to create and communicate a standard of “What we Want/Don’t Want” to not only the field managers, but to the internal appointment personnel.
Do you have such standards in writing, and communicated, and followed? A template set of guidelines is included after this article in its entirety. Pieces of the template are extracted here for comment.
“If the producer had civil judgments within the last three years (including foreclosures) totaling $3,000 or more.” This guideline can be helpful in several ways. It can help determine the community standing of the producer, the producer’s attitude toward his
or her obligations, and an indication of debt payment.
“If the producer has ever been convicted of any felony.” As you are aware, the federal law requires convicted felons to be specifically granted the approval of a state insurance department before they can be involved in the business of insurance. The company has a responsibility to determine if there is an issue here.
“If the producer has had a criminal conviction involving investments, insurance, taxes, or a financial business or involving dishonesty or fraud.” Even if producers have not been convicted of felonies, there are many other convictions that indicate a breach of trust or untrustworthiness.
“If the producer has ever had his or her license suspended or revoked, other than for failure to maintain continuing education (or a similar administrative problem).” Many producers have had state licenses revoked or suspended for technical issues that your company may not be at all concerned with (unless the producer is currently under suspension, of course). Whoever is recruiting this producer may not be aware of such suspensions or revocations, but should be asking the question, if not sure.
“Any unpaid state or federal income tax or county property taxes due.” As you are aware, some states are now checking on unpaid taxes before they will renew a producer’s license. Even if this producer is appointed with you, you may want to counsel her or him to get those taxes paid ASAP so they won’t compromise your company by potentially unlicensed selling.
“If the producer has three or more notations on Vector, or a total Vector debt in excess of $3000.” Vector is the reporting organization which provides information on whether a producer is in debt to any insurance companies. In considering this item, however, be aware that there are still a few companies that charge an up-front fee for providing leads to new producers. If the producer left such a company, the “debt” may not be cleared – but, again, whether your company may not be at all concerned is a business decision.
“If the producer exhibits a “chronic” tendency to be late in payment of his or her financial obligations.” We consider a pattern to be “chronic” when payments are regularly late for several obligations, especially with regard to living necessities such as home, car, and utilities.” This item covers a serious consideration. If a producer has been unable to maintain the basic living requirements through their income level, OR has just been unconcerned about timely payments, you could have serious concerns. Without
a home and car, the producerClick for the whole story...