A lying MGA......

[The Rabbi]

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?

PEO???
It's called "hidden broker". If you do it, it better not be known.

 

[Bentleyfinancial]

I mean..........uh....we have no intention of doing that..

good to know tho.. PEO stands for Professional Employment Org. basically we deal with small to medium size businesses and we do their work comp, payroll, and employee leasing. This is one of the main reasons that we wanted into the insurance industry. We have about 400 companies in the southwest whose business we'd like to obtain on the group major med side.

 

[Guest]

some companies require indys to go through an mga or fmo, some do not...it depends on the company

 

[Mark]

Most of the time, if you don't get a release from the MGA, you have to go so long like 6 months without writing business before the company will allow you to recontract direct or they will also lock in your commissions for 6 more months.