How Financial Professionals Can Simplify the Contracting Process

Picture this...

You are sitting down with a long-time client whose parent recently passed away, leaving them with an inheritance. After reviewing their goals for retirement, you come to the conclusion that an annuity would be a smart way to invest some of the inheritance. Would you rather have access to two or three products to present to your client or have an arsenal of products available to ensure you have the perfect fit for this client's personal needs?

The advisors and agents we work with understand there are hundreds of insurance companies, and they want their clients to have access to the best products. But, getting access to all these products can be tedious and time-consuming.

The process of gaining access to sell these products typically requires filling out 10-35 pages of contracting per carrier; then, the carrier processes the forms, requests a background check from the state, assigns a writing number, and adds the advisor or agent into their system. This process can take days and sometimes even weeks!

Based on my years as a specialist, I’ve put together the top items you should have prepared to help simplify the process. Taking these steps will help you prepare when you need to start the process to get contracted:

  • State insurance license information – resident and nonresident (for the state where you are making the sale).
  • Voided check for the account where you would like commissions paid – no checks? A letter from your bank authorizing direct deposit will also be accepted.
  • E&O certificate – This must list your name and the dates must be current.
  • Anti-Money Laundering Training (AML) – This training is required by all carriers and needs to be updated every two years. Some carriers require carrier-specific AML training. At DMI, our National Sales Consultants provide instructions on how to complete this training online to the financial professionals we work with.
  • NAIC training certificate (if applicable) – Most states now require NAIC training to be completed. At DMI, we provide the advisors and agents we work with instructions for how to complete this training online.
  • Any other documents (state-specific, product training, LTC, etc.) that could apply to your request.
  • Detailed explanations anything that you answer yes to on the contracting packet background questions (tax liens, bankruptcy, felonies or misdemeanors, etc).
  • If you are contracting your company, the following legal documents will be needed to set up your 1099 IRS tax documents under your company and not to you personally:
    • Articles of Incorporation or company minutes listing you as an officer.
    • Company state insurance license information – resident and nonresident license information is required for all states is you will be selling in.

Another way to simplify the process is to work with a company that allows you to get contracted with multiple carriers with one form. When you work with DMI, our Contracting Made Easy allows you to submit one electronic form with the necessary information a carrier would need to get you contracted to sell their products. Then, we put it into a nationally recognized, secure insurance contracting software that is accepted by all carriers. Once your information is in the system, you can contract with any of our offered carriers, allowing you to focus on providing your clients with the right product solutions to fit their specific needs. 

At DMI, we're continually working to help our clients streamline their businesses. With tools like Contracting Made Easy and our newly designed My Back Office advisor portal, we are helping our advisors and agents have more time to do what they do best – SELL.

Are you interested in learning more about DMI's product partners and our contracting process? Click below to learn more!

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Ashley Germain - Contracting Specialist

As part of DMI's Contracting & Licensing Team, Ashley brings six years of experience working with a variety of financial professionals to ensure their contracting process is quick and efficient. She also works in DMI’s commissions department tracking production and helping agents with commission questions and resolving any issues. In her spare time, Ashley enjoys spending time with her family.

* This content is for licensed financial professional use only. This website is not intended for use by the general public.

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    DMI was founded in 1989 to provide financial advisors three dynamic elements for success: marketing services, sales consulting and business management.