Anyone working for farmers or got out of the contract?

Nov 30, 2016

  1. Warrior
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    Warrior Super Genius

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    I am looking to get out of my Farmers contract. I am tired of their over priced policies and their Milestones requirements. I would like to know if there are any people who were able to get out of the contract and still go sell insurance independently. I know I can quit, but then I will not be allowed to sell for 3 years. If I get terminated, will my contract be null and void?
     
    Warrior, Nov 30, 2016
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  2. todd02
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    todd02 Guru

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    A non compete is a non compete... pretty sure you just can't solicit any leads/prospects or customers you got while working as a Farmers Agent.
     
    todd02, Nov 30, 2016
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  3. djs
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    djs Super Moderator Moderator

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    This would be a significant change in the Farmers contracts. In the older contracts, if you quit, you couldn't solicit your existing clients (or even other Farmers clients) for I think 12 months. You could go out on your own or work for another agency the day after your final day with Farmers, no problem.

    In most states, a non-compete that keeps you from making a living in the industry is almost certainly not legal. Even Farmers wouldn't push it that far since courts wouldn't replace it with something practical, they would just delete the clause.

    The leads are yours anyway. The clients are not. You can continue to solicit the leads, just not the clients (they can come to you, you can't go to them, if you roll more then a few, Farmers will likely come to you).

    Go back and re-read the contract. Read it carefully, but don't read it like you think you know what it says. Read it like you don't have any idea what it says and think about your situation with the actual words on paper. My guess is you read something into it that isn't there or someone told you something and you 'remembered' reading it, but it isn't really there exactly that way.

    Dan
     
    djs, Dec 1, 2016
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  4. todd02
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    Then new contract bans a Agent from soliciting any lead, prospect or customer that was solicited while a Farmers agent. Farmers claims ownership of even the leads.
     
    todd02, Dec 1, 2016
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  5. insurance1822
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    insurance1822 Guru

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    Captors are wicked.
     
  6. VolAgent
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    Sounds like a good reason not to put leads or prospects into your Farmers' CRM.
     
  7. djs
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    djs Super Moderator Moderator

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    Is this for all leads or for leads Farmers supplies (if any)? I don't know how they can claim ownership of leads you purchased. Not saying they don't try to, but, you are an independent contractor, not an employee. They didn't pay for those.

    Double check, make sure its all leads, not just the leads Farmers may provide.

    Dan
     
    djs, Dec 1, 2016
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  8. todd02
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    It's any quote you enter into their quoting system. You are using their systems and the prospect now understands you are working for farmers. farmers doesn't want customers seeing agents quit and talking smack to prospects. I get the reasoning. If you don't like the contract don't sign it. The new Agent bonus' with that contract are up to I believe 38 % new business commission. I'd sign it in a heart beat if I could!
     
    todd02, Dec 2, 2016
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  9. insurance1822
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    Yep. Helps them pay the bills until they're hopefully big enough once it drops off. Then they're enslaved to a captive who will control their destiny indefinitely. Kind of like a crack dealer offering cheap hits at first.
     
  10. djs
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    djs Super Moderator Moderator

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    Wow! Someone needs to take this to court. Won't stand up to scrutiny, if it actually works that way. They claim they own the lead because you qouted on their system, but then they also require you quote on their system. And then they ban you for 3 years? But you buy the lead?

    They can contractually keep you from talking smack and I understand that, but I don't see how this type of non-compete can stand up to any legal scrutiny. On top of that, 38% bonus, if the OP can't write a policy, doesn't help much.

    I might have to find a copy of the current contracts to review. I haven't seen them in years and I know they have changed significantly, but this is over the top.

    Dan
     
    djs, Dec 2, 2016
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