Elevate Your Insurance Career: Start Your Own Agency
Transform your insurance practice into a thriving agency. Boost credibility, earnings, and create a lasting legacy.
Why Become an Agency?
Boost Credibility
Enhance your professional image. Clients trust agencies more than individual agents.
Increase Earnings
Unlock greater earning potential. Scale your business and diversify your income streams.
Tax Advantages
Enjoy tax benefits. Agencies have more deductions and financial flexibility.
Lasting Legacy
Build a sellable asset. Your agency can continue even after you retire.
Establishing Your Agency: First Steps
1
Form Business Entity
Choose between LLC, Business Trust, or Corporation. Obtain a Federal Employer Identification Number (FEIN).
2
Verify Individual License
Ensure your personal insurance license is active with necessary lines of authority.
3
Apply for Agency License
Visit SIRCON.com. If your state's Department of Insurance does not process application through SIRCON, visit the state's Department of Insurance website. Complete the online application for a business entity license.
Getting an Approved Name for Your Agency
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1
Go to Sircon's website (sircon.com) and create an account if you don't already have one.
2
If you have a Federal Employer Identification Number (FEIN), create a Sircon agency account. If you don't have an FEIN yet, create a Sircon individual account.
3
Log in to your Sircon account and navigate to the Business Entity Name Approval Request service. Complete the online name approval request form, providing all required information about your proposed agency name.
4
Submit the name approval request. There is no fee for using this service.
Wait for Sircon to process your request. You should receive an email response within two to three business days.
If your name is approved, you'll receive a confirmation number via email.
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Once approved, your name will be reserved, allowing you to proceed with the business entity license application.It's important to note that this process is specifically for new business entities applying for an insurance license for the first time.
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NEXT STEPS…
After receiving name approval, you can then proceed with the business entity license application process as outlined in the previous steps. This two-step process ensures that your agency name is approved before you invest time and resources into the full license application
Completing Your Agency Application
1
Provide Essential Information
Input your firm name, FEIN, and other required details accurately.
2
Designate Responsible Person
Appoint a Designated Responsible Licensed Producer (DRLP) with appropriate qualifications.
3
Answer All Questions
Be thorough when describing your business structure and ownership.
4
Submit Documentation
Provide any additional required documents, such as E&O insurance proof.
Finalizing Your Agency Setup
1
Pay Fees
Submit the required application fee, which varies by state.
2
Wait for Approval
Allow time for your state's Department of Insurance to process your application.
3
Obtain License
Receive your agency license as instructed by your state.
Setting Up Commissions for Your Agency
1
Update Line of Authority
Add accident and health lines to your agency license if needed.
2
Contact Carriers
Inform insurance carriers of your new agency status and licensing information.
3
Update Contracts
Request updated contracts allowing commissions to be paid to your agency.
4
Complete Forms
Fill out commission assignment forms, W-9 forms, and agency appointment documents.
Maintaining Your Agency Status
Keep Information Current
Regularly update your agency details with the Department of Insurance and carriers.
Monitor Commissions
Verify that commissions are paid to your agency's tax ID number.
Comply with Regulations
Maintain E&O insurance and file annual reports as required by your state.
Navigating State-Specific Requirements
Here are a few state-specific requirements:
California Requirements
California requires agencies to have a physical office in the state. You must also designate a primary agent responsible for compliance.
New York Requirements
New York has strict cybersecurity regulations for insurance agencies. You must implement a comprehensive cybersecurity program and file annual certifications.
Texas Requirements
Texas requires agencies to maintain a $50,000 surety bond. You must also complete specific continuing education courses annually.
IF YOU NEED HELP IN YOUR JOURNEY:
SCHEDULE AN APPOINTMENT WITH A NAVIGATOR AT RED WORLDWIDE, INC.
