A question about captive contracts

[Frank Stastny]

Midwest,

I don't think you have to worry about the other carriers asking you to leave. Typically it is the captive company that will tell you to cancel your other appointments or resign.

When I was still captive, and just before I went independent, I licensed with several companies It took the captive company a couple of months to find that out. As soon as they did they told me if I didn't cancel my appointments with other companies they would cancel mine with them. I just smiled. A week later I got a letter from them telling me they "didn't want me any more". It brought a tear to my eye.

Sorry, I just realized I may have misread your post. Did you mean the other carriers haven't asked you to resign your appointment with them, or Humana hasn't asked you to resign your appointment with with the other carriers?

 

[senior-advisor-indiana]

Frank,
How did your captive place find out you had other contracts? I have heard that in ohio that it is public info showing who you are contracted with. Here in IN that is not the case.

Can you call up a company to see if someone is contracted with them, or is that protected info.

 

[Frank Stastny]

Senior, The captive company found out. (I sure didn't tell them.

They "vectored" me. For as long as I have been doing this I have to admit I don't know who or what Vector is. All I know is who or what ever it is they are a "tattle-tail". I think it also shows if you have a debit with any other insurance company.

Does anyone know who Vector really is? Or, will the real Vector please stand up. haha

My captive company use to do that almost monthly with all their captive agents. All 3,600 of them. They think they own you and I guess they do.

Another good reason for not being captive in Missouri. I assume they still do that. Something I don't have to worry about any more.

 

[senior-advisor-indiana]

My captive guy wants EVERY contract through him. Even the ones that we aren't suppose to sell( the ones that violate our contract). Thats why I am leaving because if I don't I will be stuck with him and every competitve company.

 

[Frank Stastny]

Someone here may know more about this than I do, but I don't think you are "captive" with the company but only with the broker.

The reason I say that is because I teamed up with a guy who had an agency three years ago to sell Med Supp policies to his clients. He didn't want to mess with it.

He wanted my commissions from the policies he sold to his clients to go through the agency and he paid me. Sorta, kinda captive I guess with him.

So I told him who I thought were the best companies and he contacted them to get appointed. He told them I needed a writing number for the business I wrote through his agency. As a result, I had two writing numbers with several companies. One for my personal business and one for policies I wrote to his clients.

I told him I refused to give up my personal writing numbers. That would have been a deal breaker. The insurance companies said they didn't have any problems with that.

When he sold the agency I got all the business I had written for him put under my personal writing number. That was the agreement between us that if he ever sold out I would get what I had written.

 

[J.R.]

He wanted my commissions from the policies he sold to his clients to go through the agency and he paid me. Sorta, kinda captive I guess with him.

Besides having control over you because he has your money, what incentive would there be to keep things through his agency?

I told him I refused to give up my personal writing numbers. That would have been a deal breaker. The insurance companies said they didn't have any problems with that.

Why would somebody want you to give up your writing agent number?

When he sold the agency I got all the business I had written for him put under my personal writing number. That was the agreement between us that if he ever sold out I would get what I had written.

I'm glad to see things worked out for you in the end.

 

[The New Guy]

Sure are making this hard.

Captive, to be, or not to be, that is the question. I would like to get started this week. I would love to start out being independant, however, this industry is completly new to me. I'd feel like a bull in a china shop, doing more harm than good. I posted links to 4 companies on this thread that are looking for agents in my area to get some feedeback from fellow posters. Didn't get as many responses as I had hoped to. Sounds as if everybody on this forum started as a captive agent at one time or another as it is. I guess I will have to make up my mind soon. Leaning towards Bankers Life, just have always liked the name, and it's a name I've known for more than 30 years. Suppose I could do worse. I will find out what their program is tomorrow and go from there. Long term goal is to be on my own, but it sounds like I may have to take my share of bumps and bruises along the way. At least with me following and reading this board the past 9 months or so, I will be able do so with my eyes wide open.

 

[johnrocks]

Senior, The captive company found out. (I sure didn't tell them.

They "vectored" me. For as long as I have been doing this I have to admit I don't know who or what Vector is. All I know is who or what ever it is they are a "tattle-tail". I think it also shows if you have a debit with any other insurance company.

Does anyone know who Vector really is? Or, will the real Vector please stand up. haha

My captive company use to do that almost monthly with all their captive agents. All 3,600 of them. They think they own you and I guess they do.

Another good reason for not being captive in Missouri. I assume they still do that. Something I don't have to worry about any more.

Yeah what is vector, I have googled to no avail but vector don't show up!!

 

[senior-advisor-indiana]

Hey newguy, If check into great american senior benefits b4 you sign anything. They are very competitive in the senior market, have every product you need and 5 or 6 different companies.

Besides the products and training, another reason to go there... after 2yrs you are fully vested for 2 yrs. HOwever many yrs you stay is how many you are vested. you have to be there for at least 2 yrs though.

 

[The New Guy]

Senior,

Thanks for the heads up. Do you have a link to their website. Seems I read about them from your earlier posts, but don't remember a website.