What Is Agency Owner? Definition

Why it matters

Owners may earn overrides on agents they hire or sponsor, plus their own commissions. They also take on costs, state entity licenses, and management time. Terms depend on the agreements with carriers and any IMO. New owners should plan for start-up costs and learn state rules before hiring. Owning an agency is a business decision, not a shortcut, because income still depends on sales and costs.

Source: law.cornell.edu

Where we use this term

Related terms

Agency: An agency is a business licensed to sell insurance through its agents. It can hold carrier contracts, employ or contract with producers, and in many states needs its own entity license.
Downline: A downline is the group of agents recruited by and working under a given agent in a hierarchy. The agent above them is their upline.
Override: An override is extra commission an upline earns on the sales of agents beneath them. It is often the gap between the upline's contract level and the writing agent's level.
Hierarchy: A hierarchy is the chain of contracts that links an agent up through agencies or marketing organizations to a carrier. It decides who earns what from each sale.
Errors and Omissions Insurance (E&O): E&O insurance, short for errors and omissions insurance, covers an agent against claims that a mistake or missed duty in their work harmed a client. It is a form of professional liability coverage.

All 241 terms

Why it matters

Where we use this term

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