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Why Check
Out Insurance Agents?
The insurance industry does not have the best reputation. Agents can
say anything and believe me, they do. The California Department of
Insurance has a Website (www.insurance.ca.gov)
on the Internet that gives consumers a resource of public information
they can use to check out agents who are soliciting them for various
insurance products. I believe this is great information.
Disclaimer: The following is an interpretation on how one might use
public information to determine whether an agent is qualified to
sell/educate individuals or groups on a given type of insurance. It is
not to be misconstrued as "the source", but as one reliable
way to help the public determine whom they are doing business with. A
resource for checks and balances.
Why this simple, basic information tells you so much:
- Agents name
– Who they are
- Agents License #
- Does this number match who they say they
are?
- Type of License
– Life, Variable Contracts, Etc.
- Status
– Whether of not the license is active or inactive
- Status Date
– Tells how long the agent has been in the
business. A couple of years are certainly not as desirable as the
experience of say 5 or more years in the business. Obviously the more full
time years in business the better.
- Business Address
– Where this agent conducts business.
- Company Appointments
– Who the agent represents and how long
they have represented them. If an agent only represents one company or
one company for a given product, how can they possibly be un biased?
One size does not fit all. What if the products are not the most
commonly used approach to protecting what the client is interested in?
- Continuing Education
– Tells what courses the agent
completes to keep his or license active. May support whether or not
one educates themselves in the area they claim to specialize in.
Lastly, this website will tell you whether an agent has had any
disciplinary actions called "enforcement actions" taken
against them by the Department of Insurance – may be a great
indication of character.
EXAMPLE AGENT 1:
- Has advertisement in senior publication for inexpensive living
trust. Also claims to "specialize" in Long Term Care (LTC)
Insurance.
- Note:
In business for 5 years. Of the 19 companies listed
only 3 are LTC insurance carriers. The first company is good, the
second company has given multiple rate increases and takes high-risk
conditions often, the third company sells life insurance with a LTC
rider, not the most common approach to LTC, but okay in some cases.
Continuing Ed only consists of slight LTC background.
- Remarks:
Years in business not bad, does not
specialize in LTC. Would carry more of the highly rated companies if
he or she were looking out for the client. Over half of carriers
should be companies that sell LTC.
EXAMPLE AGENT 2:
- Not necessarily claiming to be LTC specialist. Wanted to
demonstrate examples of Enforcement Actions.
- Remarks:
Enforcement Actions alone would concern me about
the integrity of this individual.
EXAMPLE AGENT 3:
- Claims to be a LTC Insurance Specialist, Advertises as such.
- Note:
In business for 10 years, Of the 20 companies listed
only 2 are not LTC insurance carriers. All Continuing
Education relates to his area of specialty.
- Remarks:
Long experience, confirmed by length of time in the
business and somewhat confirmed by length of time appointed with
carriers like Continental Casualty (CNA), a long time LTC company. 90%
of his carriers are LTC companies. Cont. Ed is in his area of specialty.
Extremely possible that he is in fact a LTC Insurance Specialist.
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