Alternative to Ohio National

Dec 20, 2018

  1. Norwayguy
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    Norwayguy I have spent way too much time here.

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    Dropping products and keeping commissions
     
  2. walthamny
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    walthamny Guru

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    Whats wrong with keeping renewal commissions. I have seen NYL and NWM do it so many times to their 20 year career agents. When they are not happy on how much business they place with the mother company, audit them and find something very small in the client files, fire them and keep the renewals. Raising production numbers is also another way. Ohio National has now joined the club.
     
  3. Norwayguy
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    Norwayguy I have spent way too much time here.

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    Because they are not even claiming to find anything and these are independent agents.
     
  4. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    Because it's a violation of the selling and compensation contract.

    In your example, you allege that companies "nit-pic" for ways to avoid paying out vested renewals to a specific individual agent.

    In the case of Ohio National... they did it to EVERYONE (who isn't a captive agent with them).
     
    DHK, Dec 25, 2018
    #14
  5. VolAgent
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    VolAgent Guru

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    From a pure pinching pennies stance, that is a very smart move. However, long term it will get you a reputation you don't want.

    When your business and in fact your entire industry is built upon a promise and the trust that you will fulfill that promise, do you really want to develop a reputation for dishonest and unethical dealings? Because even though those minor infractions existed in your example, the sole reason it was done was to avoid paying promised compensation to those agents. If I can't trust you to keep one promise, how can I trust you to keep another?

    A contract that requires the courts to enforce is a contract not worth entering.
     
  6. ATM
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    ATM Super Genius

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    IMO what Ohio National is telling everyone is that they have serious financial problems - mismatched assets and liabilities.

    They are scrambling to cut costs at every turn and sticking to advisers was just the very first step. They are also gutting the back office and watch for them to stick it to policyholders to try to stay in business.

    (all just my opinions with a little insider knowledge, whatever that may or may not be worth.)
     
    ATM, Jan 3, 2019
    #16
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