Agent Release

[Enter the Race]

So I have heard that if you did not have an Agent Release contract signed with your upline and you try to switch agencies, then they can hold onto your carrier contracts for 6 months. So does that mean that they can Legally prevent you from writing business for 6 months then after that they Have to release you, or is there more to this situation.

 

[GreenSky]

If you mean can they hold onto you in violation of your typical 30 day notice of cancellation, no. But they screw you just the same due to an agreement with the FMO and insurance companies.

It's the most disgusting way of doing business but there is not point suing. You'd win the battle and lose the war.

Stick with marketers that are honest enough to give you a written up front release. If they balk, tell them you'll find someone more ethical with which to work.

Rick

 

[m4ncsu]

Depends on who it is. Some are longer than 6 months. Basically it means you can't write with those companies that you are contracted with for however long your contract says. Means your new imo will have to have different companies for you to get contracted with. Also make sure you don't go back and churn business to your new companies, that will come back to haunt you.

 

[Baseball7]

In most cases there are comperable Insurence Companies that will allow you to stay in business. But, most don't release.

 

[goillini52]

So I have heard that if you did not have an Agent Release contract signed with your upline and you try to switch agencies, then they can hold onto your carrier contracts for 6 months. So does that mean that they can Legally prevent you from writing business for 6 months then after that they Have to release you, or is there more to this situation.

If they won't release you, tell them "you're takin' it to the Forum".

 

[Life Hawk]

If they won't release you, tell them "you're takin' it to the Forum".

And then come on here and do your laundry... put it on extra spin with a long soak so everyone can see who got your clothes dirty to begin with. We like to know.

 

[Enter the Race]

Depends on who it is. Some are longer than 6 months. Basically it means you can't write with those companies that you are contracted with for however long your contract says. Means your new imo will have to have different companies for you to get contracted with. Also make sure you don't go back and churn business to your new companies, that will come back to haunt you.

I have heard agents churning business is common with LH when people leave there, and LH will do a "double" charge back if they find out you are doing it. Churning is techinically Illegal as well and I have heard that it is easy to get caught doing it. So yes it will come back to you.

 

[Enter the Race]

And then come on here and do your laundry... put it on extra spin with a long soak so everyone can see who got your clothes dirty to begin with. We like to know.

I try not to be a dick with anyone, but some of these *** "Agency Builders" just need a hand in their face sometimes. The way some of them respond to you when you decline there offer is incredible.

 

[Life Hawk]

I try not to be a dick with anyone, but some of these *** "Agency Builders" just need a hand in their face sometimes. The way some of them respond to you when you decline there offer is incredible.

My philosophy is, "Don't be the salesman who is too easily sold, by the prospect or other wise."

 

[Migshannon]

So I have heard that if you did not have an Agent Release contract signed with your upline and you try to switch agencies, then they can hold onto your carrier contracts for 6 months. So does that mean that they can Legally prevent you from writing business for 6 months then after that they Have to release you, or is there more to this situation.

The industry standard is if an agent has not submitted business for 6 months they are free to move to another IMO/agency. So if your current IMO/Agency will not release you, you have to stop writing business for 6 months. They can not legally prevent you from writing business. It just means that every time you submit business your 6 months starts over.

Churning business or rolling your block is NOT illegal in the the state of Texas. The DOI says it is perfectly fine as long as you are placing your client into a better situation and doing a proper replacement. However, you need to be careful and consider these factors.

1. If your client has had your original policy for over 2 years then you should leave them alone or only ad coverage. Why? Because they are past the incontestability period. If you replace that policy you are placing them into a new 2-year contest. If your client dies during the new 2-year contest and the new company does not pay the claim. The family could file a lawsuit against you.

2. If you are receiving renewals from the company that you are replacing. That company could terminate you and keep all your renewals. Most insurance companies do not tolerate an agent replacing their own business or other agents business that is appointed to the same company.

So let us say you are independent and have multiple contracts with insurance carriers. You come across an American Amicable policy that you can replace but you are also appointed to sell American Amicable. If you replace the policy an AmAm finds out, they will terminate you.