1099 Agent - Question

[seadevil]

Here is a question that could easily be ranked a silly. If you are a 1009 Agent to a company are you allowed to contract with other companies? I spoke to a person today about a position with their company and he said that it was a 1099 position.

Just learning about insurance the reason for the question.

 

[indmedins]

When you say other companies, are you talking about carriers or agencies? 1099 is only a designation for taxation, meaning you are an independent contractor. No taxes are witheld by the agency or company, but you are responsible to pay your taxes at a later time.

A contract might prevent you from being independent, hence captive. Different terms.

 

[joshril]

Yep! Here's a novel idea... read your contract. Bonus points for doing it prior to signing it!

 

[seadevil]

indmedins,
Thank you for the info. This provides some insight that I did not understand.

Joshril,
Wow, what an amazing ideal. When I see it, I will defiantly make sure I read it.

 

[indmedins]

indmedins,
Thank you for the info. This provides some insight that I did not understand.

Joshril,
Wow, what an amazing ideal. When I see it, I will defiantly make sure I read it.

Make sure you have some coffee in your system. They are snoozers.

 

[patch36]

If you sign with the company you interviewed with yesterday you are captive.

 

[thewold]

I had a captive contract a while back and when I read the non-compete clause, it really didn't say anything about being captive. I was told I was captive, but all the contract really said was that I was not allowed to solicit other business to clients, employees and managers for 2 years. Didn't really say anything about new prospects other than the company would have the first right of refusal. My company let me go outside for health insurance as they did not offer it. Maybe my manager just turned his back, I don't know. But nowhere did it say about not being able to contract out.

Maybe I'm a little naive, but could they really do anything if they found out other than terminate your contract. Could they really find out if you wrote a referral another company unless the referral called and told the captive company. I'm no lawyer, but my interpretation was that if they offered it, you had to write it through them, if not take it elsewhere.


Am I wrong, could they take you to court or sue or something.

 

[arnguy]

indmedins,
Thank you for the info. This provides some insight that I did not understand.

Joshril,
Wo w, what an amazing ideal. When I see it, I will defiantly make sure I read it.

If I were you, seadevil, I would not be defiant----but I definitely would read the contract.:redface:

 

[theinuranceguy]

Before I resigned from the FMO I was with, I was managing our captive teams. In the contract it stated you were not allowed to appoint with any other company outside of the brokerage.

I saw it happen a couple times....

One guy had his commissions frozen, and no release...

It was ugly.

 

[seadevil]

Thank you for the replies, they have been quite educational. I will ensure that all of my questions are answered before I sign anything.

Arnguy,
I knew the spelling didn't look right, but at that time of the morning my brain wasn't 100% functional, still on first cup of coffee.