Pros
There are none unless you like working for free
Cons
having your book of business stolen once it is establishedIn my opinion, American Family Insurance scams its own insurance agents. They profit from terminating their agents who are local small business owners trying to build a business to achieve their dreams. American Family Insurance is all about protecting the dreams of their clients, but at the same time they are crushing the dreams of their agents. Here are some facts: •American Family Insurance agents are in a contract that can be terminated at any time for any reason. •American Family Insurance agents DO NOT own their “book” (the policies) and have no rights to it if American Family chooses to terminate them. •When an American Family Insurance agent gets terminated (no matter the reason, if any), all of their policies get “bulk transferred” to another agent(s). American Family doesn’t pay commissions on these bulk transfers for 12 to 23 months. •In addition to corporate American Family pocketing the commission for 12 to 23 months, the agent who receives these bulk transferred policies only gets paid 57% of the normal commission rate after that 12 to 23 month period. American Family Insurance is literally profiting from terminating agents. Now, you would think that a growing insurance company would be increasing its agency force, but the amount of American Family Insurance agents has actually decreased by close to 25% over the last several years. Why would American Family Insurance terminate good agents? It doesn’t matter if you are a good agent or a bad agent, the company will profit more and help its bottom line by firing you. Even if you are a great agent, the company is paying you 100% of the commission rate on your policies. They can terminate you, transfer those policies to other agents, not pay any commissions at all for 12 to 23 months (the new agent is forced to service the policies for free) and then only pay 57% of the commission rate after that. American Family Insurance pockets 100% of the commission for those 12 to 23 months, then pockets 43% of what should be paid out to its agents.