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Insurance...?
We are planing to start our own insurance company NOT agency, I need to know all the things which I need before I can sell the insurance..as of..what different type of Licenses do I need before I can get in the business?, contact with DMV or not?, State Approval? etc...etc... there is whole lot of information which I need so any one there who can guide me Please??
Public Comments
- Just contact your state's Insurance Department...I think you will be shocked at the amount of money that is required to hold for reserves. You can't exist as an insurance company unless you can prove that you are financially stable, and capable to pay at any time the maximum in losses for any and every policy you write. Ex. One person has an auto policy with 1 million dollars in liability limits, and a $30K vehicle has an accident... If they totaled their car and caused the maximum amount of damage to other people's property and person....there goes $1,030,000.00 right there in one day...not to mention the legal defense charges on top of that for any civil suits.....and medical payments to your insured driver. Good luck though in your pursuits!!
- You need to spend a couple million to hire the attorneys, actuaries, and insurance geeks who can give you this information. If you have no idea what you're doing - which you don't seem to, ask you're asking for free advice on the internet (usually worth what you pay for it), you have no business starting an insurance company.
- To sell insurance you have to be licensed as an agent. You can usually find the initial licensing requirements online if you look at the NAIC's website (National Association of Insurance Commissioners). Click on your state and look for Pre-licensing requirements (found usually under Producers or Agents Licensing). Usually some type of Pre-licensing education (a class) is needed before you take a state exame and file some paperwork and fees, but it is different for every state. Check out the website attached and do your homework by calling the DOI (Department of Insurance) for your state; ask for their Agents Licensing Division or to speak to their PL (Pre-license) Coordinator.
- Sounds like you're trying to put a cart before a horse. IF you started your agency first it would be a lot clearer what you need to do to start an insurance company.
