A lying MGA......

I have decided to go out on my own and go direct. Today I went to my MGA to ask for a release and he said that I have to go with a MGA........basically he meant that I cannot go direct. This isn't true is it?? I have already spoken with Time Insurance and many others about contract percentages and I'm just curious as to why this MGA would completely lie to me.. I mean, I know why, but doesn't he think that I would eventually figure things out?? Any advice or comments would be appreciated. BTW, I would like to thank everyone for the wealth of knowledge that I have recieved in just viewing posts on this thread. I feel like this forum has put me one step above my competition so thank you....
 
Hey Mr.C I would be interested in talking with you about the specifics on your contracts. I guess that I can't Pm yet since I don't have enough posts. I have 12 agents that are coming on to work with me and I need a place to take them.
 
What kind of insurance are you talking about? Health? Life? Disability? It really depends on the company...
 
Right now I deal primarily in health insurance however in the future I would like to get into life, disability etc... I have no problem in finding a good IMO for my life insurance needs, but I would like to secure as many direct health contracts as possible... Do you have any advise for me?
 
Have you tried getting in touch directly with the carriers? For health, it's easy to go direct. Where you have to have an intermediary much of the time, is with annuities, sometimes life. Good luck!
 
Assurant is easy to go direct with... and they will advance you directly. I believe they will start you off at 20%.

United Healthcare/Golden Rule is also easy... however if you want advances, you do need to go through a company who offers that. Each company is different... some offer 20% with 12 month advances, some offer 20% with 9 month advances....

You have 12 agents currently? Are they expecting advances on all business? what have you told them so far?
 
I have found that many Carriers will allow you to transfer your contract to another MGA/IMO or go Direct (without getting a formal release from) "after" a 6 month period from the original contract date with the original MGA/IMO - pending that there are no unresolved financial or other issues hanging out there. So if your current MGA refuses to give you the release, and you can wait the 6 months from your original contract date , you can basically go with or without his approval.

Now I don't know if that will hold true for all carriers, but I do know that it is the case with many of them.
 
Yes, FMOs can be liars. I just broke away from The Assurance Group. Nothing but lies and I have lost a lot of renewal money.

If I have to go through an agency, I get a release before I sign a contract. Legitimate agencies will gladly give it. The problem is with advances. They can be real trouble.
 
Yeah I'm currently trying to obtain a release from my MGA...the thing is, I had come from a captive company to this MGA (I was new in the biz) and I ended up figuring out that I could easily go out and do my own thing pretty early in my time with this shady outfit, so they only got me appointed with GR and Assurant.
 
I am also in the PEO business with my father, so we decided that we'd expand out and obtain our own contracts and work direct. He has not been appointed with Assurant or GR so if we absolutely had to, I could maybe run through him with these companies until my 6 month waiting period expired. Plus I have 12 agents that I have recruited and none of them have any appointments. Is it possible to try this approach if my MGA doesn't release me?
 
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