How does a non-profit sell insurance?


Question:
I am helping to build a local church and we'd like to offer auto insurance (and other types later). I think we need to find a broker but I'm not really sure. We're based in Nebraska. Thanks!

Answer:
you have to have a LICENSE to sell insurance, even if you're acting as a broker or middleman. THEN, you need to find either a broker, or an insurance company willing to let you sell their insurance.

Most brokers are NOT going to split the commisison with you, and I don't know of ANY carriers that will give you an appointment with no experience.

Maybe you need to look at WHY you want to offer auto insurance, and see if there are other ways to accomplish the main goal. Commissions are only about 10%, so it's NOT a huge moneymaker.

I don't think the non-profit status is relevant - the CHURCH can't get a license to sell insurance, but you'll have to consult your attorney for further clarification.
The best you can hope for is to speak with an insurance company and work out some sort of discount for being a member of your church. You will have better luck with a direct writer (companies that use captive agents), however you would have to have a huge congregation (in the tens of thousands) to make this proposition even somewhat attractive. The only way a broker can discount a premium is to reduce their comission on a policy. There's no way a broker will do that unless you can guarantee that broker that you'll send thousands and thousands of clients their way.
You can try and start up a brokerage and sell insurance to the congregation at reduced commissions so that you only make enough money to cover expenses, however you will not find too many insurance companies who would be willing to sign a contract to such a small volume brokerage. Plus being a broker is a full time job involving a great deal of education and training. You would be unlikely to find anyone who is going to do it for nothing.
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