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Tyrone Said:

How much money does an insurance agency make when they sell an insurance policy.?

We Answered:

There's no ROI - return on investment, for selling a policy.

The commission varies, depending on the type of policy. On average, it's 10% for auto, 5% for workers comp, 15% for commercial package, and 18% for homeowners.

Out of that, they have to pay postage, office supplies THEIR insurance, salaries, utilities, etc.

Priscilla Said:

Do you need to be certified by an insurance company before you can sell their insurance.?

We Answered:

Nationwide is an "exclusive" or captive agent company, i.e. if you have a contract with Nationwide you not allowed to represent any other carriers or place business elsewhere unless Nationwide declines it and you can then place it with the excess market or appropriate government pool (the Fair Plan or Automobile Insurance Plan). Examples of other exclusive companies--State Farm, Allstate, etc.

Independent Agents can represent multiple companies, Travelers Insurance Co., The Hartford, Erie Insurance, CNA, etc.

Every agent is required to be "appointed" with a specific company before they can sell their products. Every company has specific requirements which their agents must meet before they can be appointed to represent them. Some of these requirements will be educational but there are always other types of requirements, financial, experience, ability to penetrate other markets. Getting an appointment with a major insurance company can be very difficult when it comes to Property & Casualty Insurance especially if the appointment is to write Commercial Lines Insurance. However, there are some companies that are still willing to help start-up or scratch agents.

I hope that helps. Good Luck!

Marjorie Said:

FEMA is running TV adds to sell INSURANCE ... When did FEMA become an insurance agency?

We Answered:

FEMA has been running the National Flood Insurance Program for years. I guess you're just noticing that now.

Constance Said:

how can an insurance agency waive their brokers fee's in order to sell the policy.?

We Answered:

The brokers fee is in addition to the commission they receive from the insurance company. The fee is set by the broker and therefore is negotiable. I, however, would not expect the broker to waive the fee completely.