Technology · Atlanta, GA · Member since 2021 · 4 posts · 1 vote
I'm in Georgia and in the process of getting licensed for Life & Health, with P&C to follow. I work with CRE investors on $750K–$5M acquisitions. If I also help a borrower on the financing side of the same deal, what disclosure do you give before you place their property or key-person coverage? I'm also interested in how hosting agencies handle commercial-lines appointments for newer producers.
Andre, great question — and a smart one to ask before you place the coverage, not after. When you're involved on two sides of the same deal, the safest habit is to disclose early and in writing: tell the borrower, in plain language, that you're helping on the financing side and also placing the insurance, what you're being paid on each side, and that they're free to shop the coverage elsewhere. People are far more comfortable with a dual role they understand than one they discover later. On the licensing side, your Georgia P&C appointment and the carrier's rules will control a lot of this, so I'd run the exact arrangement past your hosting agency's compliance team and a Georgia insurance attorney before the first deal — appointments for newer producers vary a lot by agency, and the host agency's errors-and-omissions and commission rules matter here. Doing the homework now is exactly how you build a practice borrowers trust.