Q: What is an Insurance Cluster? (AKA: Insurance agency network, Insurance Markets, Insurance Aggregators, Insurance Groups, and Insurance Agency Alliances)
A: Insurance cluster is a group of agents who form a formal association in order to provide one another with support, benefits, and marketing opportunities. The member agencies join together to form larger books of business and take advantage of the benefits. Some Benefits include increased profit sharing, access to a large selection of carriers, opportunities to market new lines of business and provides a support network of other insurance professionals.
Q: Is there a monthly Membership Fee?
A: No, if you don’t write anything in a given month you don’t receive a commission distribution, but there is no monthly fee.
Q: Is there an opportunity to earn a Contingency Bonus?
A: Yes, contingencies are based on loss ratio, growth and other factors.
Q: Are there special incentives?
A: Yes, there are special production contests throughout the year for everyone
Q: Who owns the accounts?
A: Each member owns the accounts he/she writes through the cluster. Our Articles of Incorporation, bylaws and your clustering agreement states Greater Midstates does not own any accounts.
Q: Is there a way to withdraw from the cluster?
A: Yes, simply give us 90 days written notice about your desire to withdraw. You’ll have 12 months to remove your account from the cluster when the 90 days is up. Generally, you do this as each policy reaches expiration.
Q: How is commission paid?
A: Carriers pay commissions to the cluster and the cluster makes a commission distribution to all members on or around the 15th of each month. You receive one payment each month and documentation about which accounts are covered in the distribution. (For example, if you had accounts with 12 different carriers during the month, your check would cover all 12 and have documentation accordingly.)
Q: What limit of E&O coverage do I need to carry?
A: Greater Midstates requires continuing evidence of E&O protection showing a minimum per claim limit of $1,000,000.
Q: What other information is needed?
A: You’re required to furnish copies of license and evidence of E&O at the start of your membership and continue to keep active copies on file with our corporate office.
Q: What is my operating territory?
A: Greater Midstates is licensed in Illinois, Indiana, Missouri, Kentucky, Iowa and Arkansas. Your operating territory would be those states at maximum and limited to those states in which you hold an active license.
Q: When do I become a member?
A: Your membership becomes active after you have supplied evidence of E&O protection, copy of licenses, submitted the membership agreement, and paid your membership fee.
Content, including images, displayed on this website is protected by copyright laws. Downloading, republication, retransmission or reproduction of content on this website is strictly prohibited. Terms of Use
| Privacy Policy
