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...anchise system that has served the automobile industry for generations is giving way to the popularity of auto superstores such as CarMax and AutoNation, a consequence of channel consol... and unacceptable error ratios. Automation and technology need to be mut...

... line of business and type of coverage required. Also of significance is the amount of the policy limits. Policy limits obviously will vary by class of business. It might be $1 million combined single limit for an independent trucker, or statutory limits for a Nonstandard Auto policy. Producers must do their homework to find out what the policy limits should be. Q. Who are your major competitors? A. The Property/Casualty industry is highly competitive, with many insurance companies operating through independent agents. And since agents represent ... program. How many tow truck operators do business in Arizona? What's the number of landscapers working in California? How many nonstandard auto drivers are there in Washington? How many accountants are there in California who need Professional Liability insurance? What about the number of new-car franchised auto dealers compared with the number of used-car auto dealers? The next questions you should ask: How much effort will go into putting the program together? What are your expectations for it? How much will it cost? How much premium volume will it generate ... What is the average premium volume per insured? There are many factors that go into quantifying the premium volume of a specialty niche program. Some insurers have declined to write a program because the average premium per insured is too low. Many carriers won't consider underwriting a program unless it has a potential first-year premium volume of $1 million. Figuring a 12.5% commission rate, producers can estimate how much commission income can be generated on a program of this size. Other considerations are coverage and form design, regulatory filings, and ...