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I do a lot of insurance claims work. I have to submit a copy of my licence, proof of liability. A few companies ask for a letter addressing the individual job. The county will ask to be put ON our policy for a job as a payee.
Ya I am thinking of going into the insurance industry but have trouble finding regulations and laws for it, like how much money on hand I have to have for each policy holder and etc..
Why will the county ask to be on my policy?
It seems like an industry where if you get enough policy holders to sign up and pay up front, it is possible to run the business honest and legally (i'm no berny madoff, and one would have to be an idiot to post his plan on a public forum to scam others)
I'm thinking if i can 500 full deposits at 5k a policy holder that I might be able to start an insurance company. I know it would be a lot of work, and I also know a few angel investors who can lend me a couple million if it was needed and i put together a solid business plan but I am in the real early stages here.
Ya I am thinking of going into the insurance industry but have trouble finding regulations and laws for it, like how much money on hand I have to have for each policy holder and etc..
Why will the county ask to be on my policy?
It seems like an industry where if you get enough policy holders to sign up and pay up front, it is possible to run the business honest and legally (i'm no berny madoff, and one would have to be an idiot to post his plan on a public forum to scam others)
I'm thinking if i can 500 full deposits at 5k a policy holder that I might be able to start an insurance company. I know it would be a lot of work, and I also know a few angel investors who can lend me a couple million if it was needed and i put together a solid business plan but I am in the real early stages here.
Same principles.
"A tontine is a scheme for raising capital which combines features of a group annuity and a lottery."
"Tontines became associated with life-insurance in the United States in 1868 when Henry Baldwin Hyde of the Equitable Life Assurance Society introduced tontines as a means to sell more life insurance, and meet the demands of competition.
While once very popular in France, Britain, and the United States, tontines have been banned in Britain and many jurisdictions in the United States, because many of these schemes were little more than swindles. Geneva, in Switzerland, was known for its active market in tontines in the 17th and 18th centuries. Nevertheless, there are underground organizations in the US that still use the tontine."
source: Wikipedia
p.s.:
I wonder what's the legal consequences for underground tontine operators in US, if caught.
Ya I am thinking of going into the insurance industry but have trouble finding regulations and laws for it, like how much money on hand I have to have for each policy holder and etc..
Why will the county ask to be on my policy?
It seems like an industry where if you get enough policy holders to sign up and pay up front, it is possible to run the business honest and legally (i'm no berny madoff, and one would have to be an idiot to post his plan on a public forum to scam others)
I'm thinking if i can 500 full deposits at 5k a policy holder that I might be able to start an insurance company. I know it would be a lot of work, and I also know a few angel investors who can lend me a couple million if it was needed and i put together a solid business plan but I am in the real early stages here.
Wow. A couple million is a small start up cost??? I think you are on Fantasy Island. That is a lot of money for someone who can't find the regulations.
Insurance companies have to have reserves on hand that are sufficient to pay every claim before they can sell a single policy. For even a small insurance company this would amount to tens or hundreds of millions of dollars. Because of competition in the insurance industry, insurance companies have to sell in high volume and have to adjust their rates very closely so that they take in just about as much in premiums as they pay out. They make more money by investing their reserves than by selling policies. Insurance companies have very, very high startup costs.
Ya I am thinking of going into the insurance industry but have trouble finding regulations and laws for it, like how much money on hand I have to have for each policy holder and etc..
Why will the county ask to be on my policy?
It seems like an industry where if you get enough policy holders to sign up and pay up front, it is possible to run the business honest and legally (i'm no berny madoff, and one would have to be an idiot to post his plan on a public forum to scam others)
I'm thinking if i can 500 full deposits at 5k a policy holder that I might be able to start an insurance company. I know it would be a lot of work, and I also know a few angel investors who can lend me a couple million if it was needed and i put together a solid business plan but I am in the real early stages here.
Are you looking to start an office with an existing insurance company or are you going to start your own insurance company from scratch? If you are going to start from scratch, plan on it being at LEAST 2 years before you can sell anything. The insurance industry is one of the most regulated industries and the paperwork alone takes forever.
Now, if you are interested in starting an office with an existing insurance company, they have training programs that do pay you while you are establishing your business and you have no upfront costs at all. They will pay for your licensing classes and training as well as giving you money to open an office, hire staff, etc. Usually this is a loan to you and you have to pay it back after so many years but they reduce the loan size based on how well you do. This would be for companies like American Family Insurance.
If you want to work for a company like Northwestern Mutual or New York Life, they also have paid training programs with no start up fees.
"A tontine is a scheme for raising capital which combines features of a group annuity and a lottery."
"Tontines became associated with life-insurance in the United States in 1868 when Henry Baldwin Hyde of the Equitable Life Assurance Society introduced tontines as a means to sell more life insurance, and meet the demands of competition.
While once very popular in France, Britain, and the United States, tontines have been banned in Britain and many jurisdictions in the United States, because many of these schemes were little more than swindles. Geneva, in Switzerland, was known for its active market in tontines in the 17th and 18th centuries. Nevertheless, there are underground organizations in the US that still use the tontine."
source: Wikipedia
p.s.:
I wonder what's the legal consequences for underground tontine operators in US, if caught.
Hmm. your thinking of scamming people, I am thinking of running a legitimate business where one is simply paid before the service is provided, there is a huge difference. Is car insurance a scam? NO. I pay 2k a year for car insurance every jan. but my car insurance is not phony. I have gotten payouts from them
Are you looking to start an office with an existing insurance company or are you going to start your own insurance company from scratch? If you are going to start from scratch, plan on it being at LEAST 2 years before you can sell anything. The insurance industry is one of the most regulated industries and the paperwork alone takes forever.
Now, if you are interested in starting an office with an existing insurance company, they have training programs that do pay you while you are establishing your business and you have no upfront costs at all. They will pay for your licensing classes and training as well as giving you money to open an office, hire staff, etc. Usually this is a loan to you and you have to pay it back after so many years but they reduce the loan size based on how well you do. This would be for companies like American Family Insurance.
If you want to work for a company like Northwestern Mutual or New York Life, they also have paid training programs with no start up fees.
Finally someone who actually answers the question rather than talking about ways to scam people.
Yes this is some useful information, care to elaborate. or where i can find more info on start ups. hmm 2years seems like a lot of time.
Insurance companies have to have reserves on hand that are sufficient to pay every claim before they can sell a single policy. For even a small insurance company this would amount to tens or hundreds of millions of dollars. Because of competition in the insurance industry, insurance companies have to sell in high volume and have to adjust their rates very closely so that they take in just about as much in premiums as they pay out. They make more money by investing their reserves than by selling policies. Insurance companies have very, very high startup costs.
Not true. I know most insurance companies have less than 10% of what their policy holders can claim because I use to work in a bank
Not true. I know most insurance companies have less than 10% of what their policy holders can claim because I use to work in a bank
I am glad you used to work in a bank but insurance companies ARE required by federal law to hold in reserves enough ready capital to pay all possible claims. This money is held by the PARENT company, not the individual agents themselves. If a company falls below their required reserves, they will be issued a cease and desist order and they can not sell any more policies until their reserves are met.
Mass Mutual just offered reserve bonds to boost their reserve so they can continue to sell. This is one way they can generate more reserve money.
The reserve money doesn't have to be in the the company checking account, it can be held in many asset forms but it has to be easily liquidated.
Finally someone who actually answers the question rather than talking about ways to scam people.
Yes this is some useful information, care to elaborate. or where i can find more info on start ups. hmm 2years seems like a lot of time.
Can you be more specific on what you want? I have no idea where to go to start your own insurance company but if you want to sell home and auto insurance with an existing company, go to their website and apply to be an agent.
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