5 Year Non Compete Agreement?

[Allen Trent]

any aspects of business that would be deemed similar in nature to the business of Insurance Company specifically with respect to its business expertise for system improvements, modifications without mutual agreement including contacts,

what does this even mean? doesnt sound similar to any insurance agency activities I can think of

 

[Cornelius]

I'm surprised he admitted to writing it up. Of he considered it a legal contract could he be accused of practicing law?

 

[Allen Trent]

I'm surprised he admitted to writing it up. Of he considered it a legal contract could he be accused of practicing law?

No laws against writing your own contracts. Laws would come into play if you were charging for legal advice. Definitely not a good idea when there are good local attorneys or even online legal documents readily available

 

[DHK]

No laws against writing your own contracts. Laws would come into play if you were charging for legal advice. Definitely not a good idea when there are good local attorneys or even online legal documents readily available

This is what happens when you draft your own legal documents:

 

[fed up]

This is what happens when you draft your own legal documents:

there's always the kitchen sink

 

[fed up]

a non-compete cannot keep you from earning a living and will not hold up in court when it is that broad

 

[LLATDE]

I have been bit by a non-compete before. When in doubt do not sign one if at all possible. Florida doesn't allow more than 2 years. I worked at a shop that had me sign a 3 year, then a few years later asked me to sign a 2 year, and then shortly after let me go. Classy move.

So you "could" sign this and if you leave be prepared to spend $5 - 15K fighting it. Picture a $30K in commission P&C client wants to leave with you, then I would l lawyer up. You will probably win. Otherwise don't sign it.

 

[rousemark]

I just received my life and health insurance license and I was recruited by a small agency in my town. I really wanted to work for them, but the non compete agreement really scares me and it seems like I could be blocked from the insurance industry if things don't work out. It doesn't sound like it is enforceable since it is too broad, but I don't want any legal troubles regardless. I spoke to the owner about it and the only thing he would say is that he could add a clause to review the contract on an annual basis, but I'm not sure if that is a good idea either. I'm not sure if I am overreacting if this is a normal part of business or if the contract really is something I should avoid.

This is the verbiage from the contract. I just changed the names of the parties involved for privacy.

1. NON-COMPETE

Throughout the duration of this AGREEMENT the RECIPIENT shall not, in any manner,
represent, provide services or engage in any aspects of business that would be deemed similar in nature to the business of Insurance Company specifically with respect to its business expertise for system improvements, modifications without mutual agreement including contacts, without the written consent of the Insurance Company.

The RECIPIENT warrants and guarantees that through the duration of this AGREEMENT and
for a period of five (5) years following the culmination, completion or termination of
this AGREEMENT, that RECIPIENT shall not directly or indirectly engage in any business
that would be considered similar in nature to the business engaged in by Insurance Company, its subsidiaries, and any current or former clients and/or customers, including books written, marketing
specifics, or key business affiliations.

Everybody is saying it will not hold up in court, and it may not..... BUT, how much are you willing to spend to find out? If the owner is a jerk... and from this "non compete" he certainly seems to be... he could drag this thing out and cost you a tidy sum of money and even more of your time. Write the guy off.. There are many more places an argent can work.

 

[cador]

A judge would laugh his ass off at such a farce of a contract.

It's one thing to restrict access to clients or employees, but to restrict your capability of making a living for half a decade?

With all due respect David, as I know your well respected here. But I've read alot your posts dissing Non-Competes (as you should, cause they suck for the agents that get conned into signing them), and listened to several of your youtube video's dissing both Non-Competes and FMO's that do not release (what good are releases if you signed a 5 yr N-C?). But how can you diss Non-Competes so much and be a part of an organization, 360 Ins.Group, that has a FIVE YEAR Non-Compete, more stringent than the one posted above, imo?
I know the contract with the N-C wording is ONLY required with 360 if marketing support is desired (providing funds for DM based on production). Most FMO's I talked to provide some type of support (same deal, providing funds to use for DM etc., based on production and/or close ratios), and without any type of Contract or Non-Compete to sign.

 

[somarco]

prepared to spend $5 - 15K fighting it

Higher . . . .

Everybody is saying it will not hold up in court, and it may not..... BUT, how much are you willing to spend to find out?

THIS ^^^^^^