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In the late 1980s, two groups of agencies represented the vast majority of agency aggregation in the United States: Iroquois Group and Leavitt Group both started with a large number of agency locations that they owned and operated.

Insurance companies had discontinued agency-billed policies. Consequently, they had done away with the “float,” which historically made it easier to create a new agency. Something needed to be done to help new and smaller agencies, especially those in rural areas.

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