You don’t necessarily need to establish direct appointments with dozens of insurance carriers to sell life insurance as an independent agent.
Instead, many independent agents work through a Brokerage General Agency (BGA) or Insurance Marketing Organization (IMO) that already has relationships with multiple life insurance companies.
This model allows an agent to access products from multiple carriers while the BGA helps handle carrier contracting, application processing, underwriting communication, case management, and other back-office responsibilities.
For agents who want to remain independent without building an entire life insurance operation from scratch, working through a BGA can be one of the simplest ways to get started. See What is BackNine?.
Do You Need a Carrier Appointment to Sell Life Insurance?
You generally need to be appropriately licensed and meet the applicable carrier and state requirements to solicit and receive commissions on life insurance business.
But that doesn’t mean you need to negotiate a direct carrier contract with every insurance company you want to represent.
Life insurance carriers distribute their products through different channels. One common distribution model looks like this:
Insurance Carrier → BGA/IMO → Independent Agent → Client
The BGA maintains a relationship with the insurance carrier and provides distribution and support services to independent agents.
As an agent, you can then be appointed with carriers through the BGA rather than attempting to establish an independent direct relationship with every insurance company. How Do Appointments Work? explains how BackNine handles that.
What’s the Difference Between a Direct Carrier Appointment and Working Through a BGA?
With a direct carrier relationship, an agent or agency works directly with the insurance company.
That arrangement can make sense for agencies producing substantial amounts of business with a particular carrier.
But an independent agent often needs access to numerous carriers because the best life insurance company for one client may not be the best company for another.
Working through a BGA provides another option.
Instead of creating separate direct distribution relationships with numerous carriers, the agent uses the BGA as the general agency.
The agent still sells the insurance.
The insurance carrier still issues the policy.
But the BGA provides infrastructure between the agent and carrier.
Depending on the BGA, that infrastructure can include:
- Carrier access
- Contracting and appointment processing
- Product information
- Life insurance quoting
- Electronic applications
- Underwriting support
- Case management
- Licensing assistance
- Commission information
- Policy delivery support
- Sales technology
For a small agency or individual producer, this can eliminate a significant amount of administrative work.
How the Process Works
The process can be relatively straightforward.
Step 1: Get Your Life Insurance License
Before selling life insurance, you’ll need the appropriate insurance producer license for the states in which you conduct business.
Licensing requirements vary by state. Quote & Apply will halt an application if you (or your agency, when commissions are assigned to the agency) are not life-licensed.
If you intend to sell products that are considered securities, such as variable universal life, additional securities registrations apply. Enter your CRD number in BOSS > Settings. When a variable case is submitted, the carrier typically pays the agent commission to your broker-dealer (and the GA commission to BackNine’s broker-dealer).
Your BGA doesn’t replace these licensing requirements.
Think of licensing and carrier contracting as two different things:
Your insurance license gives you legal authority to engage in insurance activities permitted by that license.
Carrier contracting and appointments establish your relationship with the insurance company according to applicable carrier and state requirements.
You generally need both pieces addressed before completing business where they are required. Errors-and-omissions coverage is also required before submitting your first case.
Step 2: Choose a Life Insurance BGA or IMO
Once you’re properly licensed, you can establish a relationship with a BGA that provides access to the insurance carriers you want to represent.
When evaluating a BGA, don’t look only at the number of carriers. Review the carrier list and pricing, then consider:
- Which carriers are available?
- What products are available?
- What commission levels will you receive?
- Are commission schedules transparent?
- Does the BGA charge monthly fees?
- Are you required to purchase leads?
- Are there production minimums?
- Does the BGA provide quoting software?
- Are electronic applications available?
- Who handles case management?
- What underwriting assistance is available?
- Can you maintain relationships with other BGAs?
- Can you integrate the BGA’s technology into your own agency?
The best BGA isn’t necessarily the one with the longest carrier list.
It’s the one that provides the carrier access, compensation, technology, support, and independence that fit your business.
Step 3: Complete Your Contracting Information
Traditionally, getting appointed with multiple insurance carriers could mean completing similar contracting paperwork over and over again.
Modern BGAs can make this process significantly easier.
Agents working with BackNine enter their contracting information once in BOSS > Settings. When an agent submits an application to a carrier where an appointment through BackNine is required, BackNine uses that information to request the carrier appointment.
This is commonly called just-in-time appointing (sometimes described as JIT contracting).
Instead of immediately completing appointments with every carrier in the BGA’s portfolio, the appointment can begin when you actually have business for a particular carrier, subject to that carrier’s rules and applicable state requirements. BackNine does not mass-appoint agents to carriers without new business.
Step 4: Quote Multiple Life Insurance Carriers
One of the biggest benefits of remaining independent is the ability to compare carriers.
Imagine a healthy 40-year-old client looking for a $1 million, 20-year term life insurance policy.
Instead of presenting only one company’s product, an independent agent may be able to compare options from multiple carriers.
But price isn’t the only consideration.
Carrier selection can also depend on factors such as:
- Medical history
- Prescription history
- Tobacco or nicotine use
- Family history
- Occupation
- Aviation
- Foreign travel
- Financial underwriting
- Coverage amount
- Product features
- Conversion options
- Underwriting programs
- Customer objectives
This is one reason access to multiple carriers is valuable.
BackNine’s Quote & Apply™ platform provides multi-carrier life insurance quoting and allows agents to move from a quote into an electronic application workflow. See Submitting Your First Case with Quote & Apply.
Step 5: Determine the Appropriate Carrier
The cheapest quote isn’t always the best recommendation.
Experienced life insurance agents learn that underwriting can make carrier selection just as important as the initial premium.
A client with a particular medical condition, medication, occupation, hobby, or family history may receive dramatically different underwriting outcomes from different carriers.
A BGA can help here as well.
Instead of an independent agent maintaining underwriting relationships with every insurance company individually, an experienced brokerage team can help the agent understand how different carriers may view a particular risk.
For more complicated cases, this can be one of the most valuable services a BGA provides. In BOSS, you can also submit a quote request when you want internal help on case design.
Step 6: Complete the Application
Once the client and agent have selected an appropriate product, the next step is completing the application.
Modern electronic application platforms can make this significantly easier than traditional paper applications.
BackNine’s Quote & Apply platform combines quoting with electronic life insurance applications, allowing agents to move clients from product selection toward application submission digitally. The agent and client can work in the same application at the same time.
Depending on the carrier and product, the process may include:
Quote → Product Selection → Application → eSignature → Carrier Submission
The exact process varies by carrier. DocuSign is used for eSignature.
Step 7: Complete the Carrier Appointment When Required
This is where an important distinction comes in.
Selling without a direct carrier appointment doesn’t mean carrier appointment requirements disappear.
Instead, your appointment can be established through the BGA’s hierarchy rather than through your own direct carrier relationship.
Depending on the carrier and state, the appointment may need to be completed before solicitation, before an application is submitted, or within a permitted period after certain activity occurs.
Most states allow just-in-time appointments: BackNine submits the appointment request with the application, and the carrier works the appointment alongside underwriting. In pre-appointment states, Quote & Apply shows Paused for Contracting and you cannot generate DocuSign until the appointment is active. BackNine starts that appointment automatically when you try to generate the DocuSign.
That’s why it’s important to work with a BGA that understands carrier-specific and state-specific contracting rules.
With BackNine, agents maintain their contracting information in BOSS, which BackNine uses to process applicable carrier appointments.
Step 8: Let the BGA Help Manage the Case
Submitting the application is often only the beginning.
A life insurance application may require:
- Medical records
- Paramedical exams
- Prescription information
- Financial documentation
- Additional questionnaires
- Underwriter clarification
- Application corrections
- Policy amendments
- Delivery requirements
Without a BGA, the agent or agency may be responsible for coordinating much of this directly with the insurance carrier.
A full-service BGA provides case-management support to help move applications through underwriting and toward placement.
BackNine’s BOSS platform allows agents to view case information, requirements, documents, notes, and chat with case support online while BackNine’s case-management team supports business submitted through the organization.
That gives an independent agent the benefits of a larger back office without necessarily having to hire one.
What Is Just-in-Time Life Insurance Contracting?
Just-in-time appointments, sometimes called JIT contracting, allow an agent to begin the carrier appointment process when the agent actually has business to submit.
This can be useful for independent agents.
Imagine having access to products from dozens of insurance companies.
Without JIT appointing, you might attempt to establish and maintain appointments with a large number of carriers before knowing whether you’ll ever submit an application to them.
With a just-in-time approach, you complete contracting information once with your BGA and initiate the appointment with an eligible carrier when a client actually needs that carrier’s product.
Not every carrier or jurisdiction permits the same process. Pre-appointment states require the appointment before eSign. Agents should never assume that JIT appointing is available for every situation. Details are in How Do Appointments Work?.
Can a New Life Insurance Agent Work Through a BGA?
Yes, many BGAs work with independent agents who are relatively new to life insurance.
However, the services offered to new producers vary considerably.
A new agent may benefit from a BGA that provides:
- Product training
- Underwriting assistance
- Case design
- Quoting technology
- Electronic applications
- Contracting support
- Case management
- Sales resources
New agents should also understand what the BGA doesn’t provide.
Some BGAs primarily provide brokerage infrastructure rather than a complete sales system.
You may still be responsible for:
- Finding prospects
- Purchasing or generating leads
- Marketing your business
- Conducting client meetings
- Making product recommendations
- Closing sales
- Maintaining your insurance licenses
- Following applicable insurance regulations
Understanding this distinction before joining an organization can prevent mismatched expectations. Submitting Your First Case with Quote & Apply walks through a first case on BackNine.
Can P&C Agents Sell Life Insurance This Way?
Yes.
In fact, working through a life insurance BGA can be particularly attractive for property and casualty agencies.
A P&C agency may already have relationships with hundreds or thousands of households.
Those clients may need:
- Term life insurance
- Permanent life insurance
- Mortgage protection
- Business life insurance
- Key person coverage
- Buy-sell funding
- Income protection
- Disability insurance
- Long-term care planning
- Annuities
But building a life insurance department requires carrier relationships, product knowledge, quoting tools, underwriting expertise, application processing, and case management.
A BGA can provide much of that infrastructure.
Instead of attempting to recreate an entire life insurance brokerage operation internally, a P&C agency can focus on its client relationships while using the BGA’s technology and back office to help support the life insurance business. See Commercial Lines Agents and How to Sell Life Insurance Online for Vertafore PL Rating Users.
Can I Sell Life Insurance Online Without Direct Carrier Contracts?
Potentially, yes.
Digital life insurance technology has made this model considerably more powerful.
An independent agent can now generate multi-carrier quotes, work with a client remotely, complete electronic applications, collect electronic signatures, and track cases online.
Some platforms can even be integrated directly into an agency’s website.
BackNine’s Quote & Apply platform allows agents to offer life insurance quoting through a personalized Quote & Apply website or integrate the experience into an existing website.
This can turn an agency website into an actual life insurance sales channel instead of simply providing a phone number and contact form.
Do I Have to Pay to Work With a BGA?
It depends on the organization.
BGAs can have different business models, so agents should understand exactly how an organization is compensated before submitting business.
Possible costs can include:
- Membership fees
- Technology subscriptions
- Lead costs
- Marketing fees
- CRM fees
- Training programs
- Commission overrides
BackNine does not charge agents a subscription fee for BOSS or Quote & Apply when BackNine serves as the general agency. See pricing.
Instead, BackNine receives compensation from the insurance carrier for acting as the general agency.
The insurance carrier pays the agent’s applicable commission, and agents can view their commission schedules inside BOSS.
Always review the actual commission schedule and agreement applicable to the carrier and product you’re considering.
Do I Have to Give Up My Existing Carrier Appointments?
Not necessarily.
Independent agents frequently have relationships with multiple insurance organizations.
Depending on the carrier and existing contract, an agent may be able to maintain an existing appointment while also placing eligible business through another BGA. BackNine has documented that dual appointments are available in many circumstances.
Other carriers may require a release, transfer, waiting period, or other process.
Before moving business, determine:
- Where you’re currently contracted
- Your existing hierarchy
- Whether dual appointments are permitted
- Whether a release is required
- Whether there’s a waiting period
- How a change could affect existing business
A BGA’s contracting department can help determine what is possible for a particular carrier.
Why Work Through a BGA Instead of Getting Direct Appointments?
A direct carrier relationship can make sense in the right circumstances.
Large agencies producing significant volume with particular carriers may prefer direct relationships.
But for many independent agents, working through a BGA offers several advantages.
More Carrier Choice
A single relationship can provide access to products from numerous insurance companies.
Less Administrative Work
The BGA can assist with contracting, licensing, application processing, underwriting communication, and case management.
Underwriting Expertise
Instead of learning every carrier’s underwriting preferences independently, agents can use the BGA’s experience to help identify appropriate carriers for unusual risks.
Technology
A technology-focused BGA may provide quoting, electronic applications, case management, reporting, and other tools that would otherwise require separate vendors.
Scalability
An independent agent can gain access to brokerage infrastructure without immediately hiring contracting staff, case managers, and other back-office employees.
How BackNine Works With Independent Agents
BackNine Insurance and Financial Services, Inc. is a life insurance Brokerage General Agency that combines carrier relationships and brokerage support with proprietary insurance technology.
Independent agents can use:
BOSS
BOSS (Back Office Support System) is BackNine’s cloud-based platform for managing insurance business.
Agents can use BOSS to access case information, contracting, requirements, documents, commission information, and other back-office functions.
Quote & Apply™
Quote & Apply™ is BackNine’s multi-carrier life insurance quoting and electronic application platform.
Agents can use Quote & Apply themselves, work through applications with clients, or offer the technology through their own websites.
Carrier Contracting
Agents enter their contracting information into BOSS > Settings. When an appointment through BackNine is needed for eligible business, that information is used to request the carrier appointment. Advance appointments are available on special request (for example, to confirm an agent with background issues can be appointed before submitting).
Case Management
Once business is submitted, BackNine provides case-management support while agents can follow case progress through BOSS.
No Agent Software Subscription
When BackNine serves as the general agency, agents aren’t charged a subscription fee to use BOSS or Quote & Apply.
Is Working Through a BGA Right for You?
If you’re an independent agent, the question isn’t simply:
“How many direct carrier appointments can I get?”
A better question is:
“What’s the most efficient way to give my clients access to appropriate life insurance products while building the agency I want?”
For some high-volume agencies, direct carrier relationships may be part of the answer.
For many independent producers, however, establishing relationships through a BGA provides access to multiple carriers without requiring the agent to independently build the technology, carrier relationships, underwriting resources, and back-office infrastructure necessary to support them.
The result can be a simpler model:
You own the client relationship and sell the insurance.
The carrier manufactures and issues the product.
The BGA provides the infrastructure connecting the two.
Start Selling Life Insurance Through BackNine
If you’re a licensed independent insurance agent looking for multi-carrier life insurance access without establishing direct relationships with every carrier yourself, BackNine provides the brokerage infrastructure and technology to help.
With BOSS, you can manage contracting and cases online.
With Quote & Apply™, you can compare life insurance products and complete electronic applications.
And with BackNine serving as your BGA, you can access carrier relationships, contracting assistance, underwriting support, and case management without paying a subscription fee for BOSS or Quote & Apply.
Create a BackNine account to explore available carriers, commission schedules, contracting, and Quote & Apply™.