American Family Insurance Agency Opportunity

[DHK]

American Family Insurance agents are in a contract that can be terminated at any time for any reason.

Same as any other career contract with any/every other company.

American Family Insurance agents DO NOT owntheir "book" (the policies) and have no rights to it if American Family chooses to terminate them.

Same as any other career contract with any/every other company.

When an American Family Insurance agent gets terminated (no matter the reason, if any), all of theirpolicies get "bulk transferred" to another agent(s). American Family doesn't pay commissions on these bulk transfers for 12 to 23 months.

Same as any other career contract with any/every other company.

In addition to corporate American Family pocketing the commission for 12 to 23 months, the agent who receives these bulk transferred policies only gets paid 57% of the normal commission rate after that 12 to 23 month period.

That's actually better than just about any other career contract with any/every other company.

American Family Insurance is literally profiting from terminating agents. Now, you would think that a growing insurance company would be increasing its agency force, but the amount of American Family Insurance agents has actually decreased by close to 25% over the last several years.
Why would American Family Insurance terminate good agents?
It doesn't matter if you are a good agent or a bad agent, the company will profit more and help its bottom line by firing you. Even if you are a great agent, the company is paying you 100% of the commission rate on your policies. They can terminate you, transfer those policies to other agents, not pay any commissions at all for 12 to 23 months (the new agent is forced to service the policies for free) and then only pay 57% of the commission rate after that.
American Family Insurance pockets 100% of the commission for those 12 to 23 months, then pockets 43% of what should be paid out to its agents.

Long story short once you've built a successful agency, they create and look for ways to terminate you. Since you walk with nothing, it's profitable for them. Don't be scammed out of working for free for years to be left destitute and in financial ruin by this greedy company that AmBest just rated as negative and unstable. Look up the court cases in numerous states where they are being sued by former agents.

Most agents don't make it anyway.

Here's the real lesson: Read the contract you are signing.

Here's most company's recruiting mantra:

"Hire 'em in masses
Teach 'em in classes
Sell all their family and friends...
And fire their asses!"