Farmers Insurance Interview Questions.

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It's always hard to know what to expect when going in for that interview -- and preparation can make all the difference. What is the interview process like at Farmers Insurance?

Any advice on striking the right note?

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seattle in Muskego, Wisconsin

87 months ago

I recently did an interview with Farmers. Its not that big of a deal. One thing to note before you interview with them as an agent is to look at what they are looking for.
First of all - they have the most agents of all insurance companies. Farmers has like 20,000. All State, State Farm, etc have about 5000. As you can tell this is a big difference. As long as you have some personality to you, they will probably hire you. Lastly - this will be a 1099 Commission Only position until you enter the career program. So they lose nothing by bringing you on and seeing if you got what it takes to succeed.
With that said, you would be better off interviewing them to see if they are the people you want to work with. Here is a list of question obtained from www.farmers-online.com that you should ask the District Manager that you are interviewing with...

1) How much money can I expect to make per year in years 1-5 if i were to do this full time?
2) How much money should I expect to invest including all expenses in my first 12 months, 24 months, 36 months, 48 months, 60 months?
3) How much will my office expense be in my first 12 months, 24 months, 36 months, 48 months, 60 months?
4) What is the failure rate of Reserve Agents in your district? Or how many of them graduate to be a Career Agent?
5) How many Career Agents graduate to become a Full Time Agent?
6) What is the Average Career Agent commission payout in your district per year?
7) What is the average Full Time Agent Commission earned per year?
8) How many average "Policies" are there per agent?
9) What is the average amount of premium per policy?
10) What new business commissions will I paid for each type of policy? Auto, Fire, Home, Term/Whole/Universal/Variable Universal Life?
11) What residual or renewal commissions will I paid for each type of policy? Auto, Fire, Home, Term/Whole/Universal/Variable Universal Life?
For what reasons can my career agent contract be cancelled

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Inertia in San Francisco, California

58 months ago

Hi,
I just started with Farmers as a reserve agent about 2 weeks ago and so far my experience have been great. My DM is very supportive and genuine, doesn't seem like someone that will use scare tactics to get sales out of me.

I know that we have to met a quarterly quota of 40 policies and 4 life policies. My question is, how long does this quota rule last? 2 years? 3 years? or for as long as I work as an agent I will have to meet this quota?

And lets say I miss my quota by one or two policy, does that mean they will fire me and take my book of business that is apparently MY book of business?

Please help with answering if you can! I can't seem to get a straight answer from other farmer's agent because apparently contracts change all the time.

Thank you.

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Ed in Denver, Colorado

39 months ago

Run-do'nt walk run away now

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Mikenbear in Oakland, California

35 months ago

I would be interested in hearing what you think of farmers now that it's been 22 months since your original post. How difficult has it been during this economy to make The 40/4 quota?

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Cristina in Canyon Country, California

23 months ago

Inertia in San Francisco, California said: Hi,
I just started with Farmers as a reserve agent about 2 weeks ago and so far my experience have been great. My DM is very supportive and genuine, doesn't seem like someone that will use scare tactics to get sales out of me.

I know that we have to met a quarterly quota of 40 policies and 4 life policies. My question is, how long does this quota rule last? 2 years? 3 years? or for as long as I work as an agent I will have to meet this quota?

And lets say I miss my quota by one or two policy, does that mean they will fire me and take my book of business that is apparently MY book of business?

Please help with answering if you can! I can't seem to get a straight answer from other farmer's agent because apparently contracts change all the time.

Thank you.

I was wondering if you ever got the answer to your question, i was just interview with farmers to became a reserve agent for the time and i have the same question you had then.

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Jadednikon in Milwaukee, Wisconsin

23 months ago

Mikenbear in Oakland, California said: I would be interested in hearing what you think of farmers now that it's been 22 months since your original post. How difficult has it been during this economy to make The 40/4 quota?

I'm in my 2nd year with Farmers and have found the company to be a great place to work. The 40/4 goal is nothing to sneeze at, but even in this supposedly tough economic climate I'm clipping along well above that number. Don't get me wrong, this is NOT an easy job and I've had my ups and downs with the company. This is really for someone who wants to make something on their own and is very much self motivated. You don't have the safety net of the company to fall back on, but then again you don't have the constraints a large company would have too.

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Cristina in Canyon Country, California

23 months ago

Thanks Guys this will help!

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Cristina in Canyon Country, California

23 months ago

Guys I been reading lots of rumors about becoming a farmers agent and most of it are bad, now I am very worry and just today I summited the applications for the background check. Can you guys tell me if all the rumors about farmers been way over price, and most commercial business are declined by the company, also what is the commission percentage that you guys get or if you know what is the percentage in California??? I am so stress about it now!!!!

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Call me Tommy in Brea, California

23 months ago

Cristina in Canyon Country, California said: Guys I been reading lots of rumors about becoming a farmers agent and most of it are bad, now I am very worry and just today I summited the applications for the background check. Can you guys tell me if all the rumors about farmers been way over price, and most commercial business are declined by the company, also what is the commission percentage that you guys get or if you know what is the percentage in California??? I am so stress about it now!!!!

Just a little bit of info. Im currently a career agent with Farmers who just went career 2 months ago. The job is hard and there is a lot of work, but the money is decent if you can do it. The average annual commision for an auto policy is $100 a year and homeowners ~$150ish. You get paid the 10% for auto up front for the year/6months and the 20% for the fire policy too. Life varies with the premium paid monthly but it's usually 45-55% (depending on the product) for the first year of premiums paid and then it goes down to about 2-3% after that. I just recently stepped into the realm of commercial yet but told that its decent, and as long as you quote,quote, quote insurance it has been shown that you will close ~25% regardless. This info hasn't been jammed down my throat; everytime I see a sucessful agent in our district office I take em aside and pick their brain and they all say the same thing when it comes to commercial regarding the previous 25%.

Here's my two cents on Farmers pricing. Any Stand-alone policy mmeaning you only write JUST auto or fire then 'usually' Farmers is overpriced compared to our competitors. If they fall within one of our affinity groups which gives an additional 12-18% off then Farmers becomes decently competative.

If you write multiple lines for 1 household 'without' the affinity then Farmers is decently competative. If you write multi-lines for a household with affinity discount Farmers usually wins in price.

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Cristina in Canyon Country, California

23 months ago

Tommy Thanks for the info, do you think you made a good desicion by beacoming an agent with farmers?? how many hours you say you work a week??? I am not scared of the hard work since I been in the insurance bussines for over 6 years in Texas, but I am new to California and because I know how hard this bussines is,is that I am so concernd of all the things people is saying about Farmers!

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Call me Tommy in Brea, California

23 months ago

Currently I work about 50 hours a week minimum, and some weeks i hit about 60; maybe a little more. My average is prob around 10 hours a day with working saturdays (not all the time like i probably should) and when I work saturday it's usually like 10-2 or 3. I tried working sundays but it wasn't paying off. With this im able to stay on top of 40/4.

A lot of people talk bad about Farmers saying it's extremely hard...blah, blah blah. They're right, but it's like that regardless of what company you go to. I'm still good friends with my old State Farm agent once i left them when I moved to Farmers, and she told me that it's really hard in CA no matter where you go. She said when she started there were 12 new agents with State Farm, and now she is the only 1 left; everyone else quit. I'm not sure how challenging the insurance game is for brokers in CA, but i guarantee you it's not much different for any of the large multi-line companies.

One big disadvantage though I've seen with Farmers when I joined is the purchasing of auto leads. The leads aren't half as bad for the other lines (home,renters,etc), but for auto it's a waste of money. The people you contact for leads are shopping one thing only - price. They don't care about anything but the cheapest deal "usually." Unless you're able to cross-sell them other lines, which I havn't had much luck doing on internet leads, Farmers will almost always be higher. I've made sales off of internet leads, but I never had a close enough ROI to continue. However, I've met some agents who had made HUGE books of business doing only that.

As for the decision to become an agent with Farmers....My grandpa and my dad sold for Farmers insurance so i got the inside scoop of the job and still decided to do it. Whats the worst that can happen? If you fail at Farmers you just go apply at a different company. You will already have a step up on other applicants cause you will already have your insurance licenses.

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John W in Phoenix, Arizona

20 months ago

Cristina in Canyon Country, California said: I was wondering if you ever got the answer to your question, i was just interview with farmers to became a reserve agent for the time and i have the same question you had then.

I am an agent with Farmers and know many others in other states and if any of you have any questions at all, please feel free to contact me as I would be happy to tell you about all the ups and downs as mentioned in all the prior posts. You can reach my office. Just visit my website for contact information www.farmersagent.com/jwallace3 as this system won't allow me to post my phone number directly

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kahfetka in Mission Viejo, California

19 months ago

Call me Tommy in Brea, California said: Just a little bit of info. Im currently a career agent with Farmers who just went career 2 months ago. The job is hard and there is a lot of work, but the money is decent if you can do it. The average annual commision for an auto policy is $100 a year and homeowners ~$150ish. You get paid the 10% for auto up front for the year/6months and the 20% for the fire policy too. Life varies with the premium paid monthly but it's usually 45-55% (depending on the product) for the first year of premiums paid and then it goes down to about 2-3% after that. I just recently stepped into the realm of commercial yet but told that its decent, and as long as you quote,quote, quote insurance it has been shown that you will close ~25% regardless. This info hasn't been jammed down my throat; everytime I see a sucessful agent in our district office I take em aside and pick their brain and they all say the same thing when it comes to commercial regarding the previous 25%.

Here's my two cents on Farmers pricing. Any Stand-alone policy mmeaning you only write JUST auto or fire then 'usually' Farmers is overpriced compared to our competitors. If they fall within one of our affinity groups which gives an additional 12-18% off then Farmers becomes decently competative.

If you write multiple lines for 1 household 'without' the affinity then Farmers is decently competative. If you write multi-lines for a household with affinity discount Farmers usually wins in price.

Great info Tommy, and thank you for the post but I need an advise.I'm planning to join Farmers I already have my licenses but no experience in the industry.I would love to have my own business, work hard and make money.Any thoughts?

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Heidi Bertero in Davis, California

18 months ago

Thanks to all of you! in all states for your Farmers Insurance IA and DM information!

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iceman982004 in Chesterfield, Missouri

18 months ago

I like what i have seen from all of you except the guy that said run away fast. Im sure he worked there for like two weeks and did bad so that means everyone will, right LOL. I know im scared to death but i love meeting new people and i love sales so im excited all the same. Any more info would be appreciated like what you all think on buying leads at first to get started and so on. Im so worried about the first six months.

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Heidi Bertero in Davis, California

18 months ago

Inertia in San Francisco, California said: Hi,
I just started with Farmers as a reserve agent about 2 weeks ago and so far my experience have been great. My DM is very supportive and genuine, doesn't seem like someone that will use scare tactics to get sales out of me.

I know that we have to met a quarterly quota of 40 policies and 4 life policies. My question is, how long does this quota rule last? 2 years? 3 years? or for as long as I work as an agent I will have to meet this quota?

Answer: I had asked this question to my DM and he told me if you eg: March 12, April 15, May 12, then you get 39/0 instead of 40/4 then you start over with them eliminating the count for March 12, but still you would receive March commission. Your 3 month trial Reserve agent starts at April 15, May 12, June you would need to get 13/4. This can be reinstated up to one year.
Hope you understand and that I have explained it correctly. - Heidi

And lets say I miss my quota by one or two policy, does that mean they will fire me and take my book of business that is apparently MY book of business?

Please help with answering if you can! I can't seem to get a straight answer from other farmer's agent because apparently contracts change all the time.

Thank you.

And lets say I miss my quota by one or two policy, does that mean they will fire me and take my book of business that is apparently MY book of business?

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Heidi Bertero in Davis, California

18 months ago

I am not sure how you could "buy" leads? Can you explain this? I would think you could purchase an establised binder from a fellow retiring agent. Is this what you mean?

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iceman982004 in Chesterfield, Missouri

18 months ago

@heidi bertero
There are many third party companies that sell insurance leads out there and from what i have been told a lot of agents use them

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Landing Strip in Cordova, Tennessee

14 months ago

Heidi Bertero in Davis, California said: I am not sure how you could "buy" leads? Can you explain this? I would think you could purchase an establised binder from a fellow retiring agent. Is this what you mean?

Dataman leads are very good, have proven to be the most successful for me.

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Donnamartinez in El Paso, Texas

10 months ago

Hello I also just signed a reserve agent contract I do see a lot of ppl saying that farmers is bad and that it's the worst place to start a business.. And that when u start ur book of business they will keep everything that in reality is not ur book even though u worked ur ass off.... I know for sure that if u don't make the subsidy goals u will need to pay then back but is farmers really that bad that they only care about themselves

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coby in Dulles, Virginia

9 months ago

Q: “I want to sell insurance as an independent agent because I want to increase my income. What can I reasonably expect as a salary and are there any caps on how much I can earn?”

A: An average Farmers independent insurance agent makes $11,000 per month. The tenure is between 5-20 years. New agents are expected to make $120k by year 4.

•1st year average: $40k
•2nd year average: $70K
•3rd year average: $105k
•4th year average: $120k

Is this true for anyone???

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Pablo P in Houston, Texas

9 months ago

thanks for all the insights......

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brain_thereferralservicellc in Newark, Delaware

9 months ago

coby in Dulles, Virginia said: Q: “I want to sell insurance as an independent agent because I want to increase my income. What can I reasonably expect as a salary and are there any caps on how much I can earn?”

A: An average Farmers independent insurance agent makes $11,000 per month. The tenure is between 5-20 years. New agents are expected to make $120k by year 4.

•1st year average: $40k
•2nd year average: $70K
•3rd year average: $105k
•4th year average: $120k

Is this true for anyone???

Can anyone confirm these numvers and how much help or support with lead generation does farmers give?

I have interviewd with statefarm, allstate, new york life, bankers life, and now farmers. They are have different compensation structures and long interview process.

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