Anyone Out There Work with Captive Agents?

[dmr1168]

Good evening

I struck up a nice friendship with a Life/P&C agent who I've been sending homeowner leads and in return he has been giving me a few med sup clients. He's captive with a large carrier, but tells me of clients he can't get approved on the life side (diabetes, heart issues, etc). Is there a way for him to receive compensation without violating his agreement? I don't want to get him in trouble, but I have a feeling I would be getting a lot more of out this relationship. Any advice would be appreciated.

David

 

[Mattschmidt]

That would depend on his captive carrier company's contract...Alot of those company's like MetLife, and Prudential, will allow you get appointed thru their GA with other carriers...If he did that , you could always split cases with him...

 

[rikwells]

That would depend on his captive carrier company's contract...Alot of those company's like MetLife, and Prudential, will allow you get appointed thru their GA with other carriers...If he did that , you could always split cases with him...

This is true that companies like Met and Pru will allow their agents to write business through other companies as long as they're on the company's approved outbrokerage list. However, in order for the agent to receive compensation legally they will most probably require that any outside case the agent is on to be sent through the agent's company first so compliance can approve the case, especially if it's a replacement case.

You should have him contact his operations and control manager (OCM). His OCM will be able to provide him with a list of approved carriers and the process for what's allowed. The downside for you is if he finds out he is allowed to go through other companies he might not feel he needs you.

 

[dmr1168]

Thanks for your input. From what he told me, there's no approved list. Would it be possible to compensate as a lead provider if he formed a company? Just thinking out loud.


David

 

[BNTRS]

Thanks for your input. From what he told me, there's no approved list. Would it be possible to compensate as a lead provider if he formed a company? Just thinking out loud.


David

Purely from a legal standpoint there is nothing wrong with this. The sticking point will be what his agent contract says. A lot of the captives pretend like they are really offering the career agent something special and so they must be 100% committed to producing business for that company. Lots of people have outside business interests, but the career company can choose to approve or deny these activities and denial means don't do it if you want to keep your career contract with us.

Now, if he's consistently exceeding his production requirements (and if he's qualifying for company clubs) those rules become much more malleable.