FAQs

1. Is there any training?
   PIIB does not have formal training programs as we typically bring on experienced agents.  The individual company reps assist through on site training, classes and webinars.
2. When can we start submitting?
   With many companies you can start writing business the day you sign the contract. It takes a few days to get the user ids and passwords set up for the automated companies. Getting your own codes assigned takes anywhere from a couple of weeks to a couple of months depending on the company.
3. Do you offer any discounts on the software? We are looking to buy agency management software. Any recommendations?
   PIIB does not endorse any agency management systems nor do we dictate what system the agents use. You will have access to 90 plus agencies who have already gone through the decision making process. Our agents use Applied Systems, AMS, and Eclipse as well as a few lesser known systems.
4. Any thoughts on going paperless? What system would you suggest? Any thoughts on equipment that needs to be used for document imaging?
   Certainly PIIB is an advocate of paperless environments. Obviously the first step is a good agency management system so you can download from the companies. Our agencies are in various stages of automation and again they would be happy to provide advice.
5. Do you recommend becoming a member of any insurance organization (IAA, IBA)?
   As a PIIB affiliate you have access to PIA membership at the branch rate of $100 per year. You also have access to PIIB’s membership in IEA. PIIB is a member of IBA West but they not offer any discounted membership. PIIB does not require you to be affiliated with any organization.
6. We now work through Burns & Wilcox, Bass and some other E&S. Can we continue?
   Yes. In fact the contract allows you to have any appointments outside PIIB except for companies who are contracted with PIIB. For example you could have a Progressive appointment but could not have Hartford, Allied or Travelers.  PIIB has several E&S relationship some with profit sharing, others with an override.
7. Do you have any health insurance markets?
   At this time our arrangement is purely Property Casualty. Many of our agents are active in Life & Health and would gladly offer advice.  We are investigating potential expansion into areas outside P&C.
8. Can we charge broker fee?
   You must follow state regulations which would preclude any broker fees on Personal Lines business written through companies where you have a direct appointment. Your PIIB affiliation would be considered direct appointment since you have the same ability to access and place business as any agent and since you are getting full commissions for that business. Commercial Lines is less clear but our agents may not charge broker fees for most of our companies. Again you have direct access and are getting full commissions. Generally Broker Fees should be limited to E&S business, non standard business or very large accounts where additional work is required by the agency.
9. Any premium requirements?
   There are no minimum premium requirements to become a PIIB affiliate. In fact profit sharing eligibility starts with the first $ written with any of our profit sharing companies. We are, however; looking for agents who will grow and be profitable. There are small commitments required to get appointments with the major carriers. A list of companies and commitments is attached.
10. Who is the Board?
    PIIB’s Board of Directors consists of 7 PIIB agency principals. 6 of the 7 are also stockholders. PIIB is owned by 9 PIIB member agencies. The stockholders elect the board every December. There are neither outside owners nor outside board members at this time.
11. When did the monthly access fees change last?
    It has been 10 years since the fees have changed. Since the Board consists of agents who also pay the same fees (all affiliates pay the same) they are a good representative to have making such decisions. PIIB is healthy financially. There are no plans for a fee increase. Of course we cannot guarantee future fees. The contract requires 90 days advance notice of a fee change.
12. Do we have to list that we are a part of the PIIB?
    PIIB does not require a legal name change. We do request that you include in your letterhead, e mail signatures and agency management systems wording” An affiliate of Pacific Interstate Insurance Brokers”. That request is not to promote PIIB, but to facilitate identifying you as a PIIB members since some of the appointments are in PIIB’s name.
13. The non-compete restriction on solicitation sounds kind of vague and un-enforceable.
    Fortunately the agents in our group have been the type that enforcement has not been an issue. We have had several situations where an agency has accidentally written an account belonging to another member and they typically work it out themselves. In 2009 we moved to non compete to the code of conduct to comply with recent California court rulings. Repeated violation of the code of conduct may result in an affiliate’s termination.
14. Are the initiation fees refundable if cancelled within 90 days?
    Initiation fees are non refundable. A primary reason for the initiation fee is the expense of setting up a new agency with 30 companies. That expense is not eliminated if an agency chooses to quit in the first 90 days. The second $2500 installment would also still be owed to PIIB.
15. Do we receive the policies and forward them or do companies forward them onto the clients?
    This varies greatly by company. For the most part companies send insured policies directly to the customer for Personal Lines and Small Commercial. In many cases the agents copy is maintained on the companies web site rather than mailing the agent copies. When PIIB receives copies of policies we always mail insured copies to the agency. Agency copies are scanned in our office and e mailed to the agency. Most of our agents then attach the e email to their agency management system and do not print policies. PIIB also uses company Service Centers heavily. Service center business is even more likely to have policies mailed directly to the customer.
16.  Do you clear new agencies being considered with current agencies in case they are someone they know to be a problem?
    New affiliates are approved by the president.  Current affiliates do not have veto power and usually will not know about a new affiliate until they have been appointed. Many of the affiliates are startups requiring confidentiality during the negotiations.  All new affiliates are screened for financial stability, loss ratio performance and reputation with markets by the president. When a prospective agency is close to an existing agency or the area they are in has multiple affiliates the president may make a courtesy call to the existing affiliate(s) before a final approval is communicated.
17. How large does PIIB plan to get?
    We haven’t established a cap. We see adding affiliates as a positive in terms of total premium, profit sharing impact and the size of the network our agents can access.  Our direct access model allows us to add agencies without significant change in our operation or our expenses. We are sensitive to the companies needs and desires as we add agencies and most importantly do not want to have so many agencies they create a conflict with each other. The growth will be steered to geographic areas where we are currently underrepresented.
18. Does PIIB have a retail agency or own any of the agencies?
    PIIB’s broker agreement prohibits PIIB from being a retail agency. We feel that could be a conflict of interest. Our job is to take care of our companies and our affiliated agencies. 
19. Will PIIB buy my agency when I am ready to retire?
    Since our contract does not allow PIIB to be a retail agency we cannot buy any of our affiliates. You will, however; have 90+ potential buyers among PIIB affiliates. In the last three years we have had four PIIB affiliates sell to other PIIB agencies in addition to a few mergers.