Aviva Cutting Contracts of 11 Out of Its 50 IMO's!

[policy doctor]

If you do sign up, first make sure you're near a copy machine so you can make copies of what you just signed. True for anybody you go with, but many seasoned agents neglected this and when they left, they worried about that non-compete clause. It is stiff. Funny how they could never get a copy after the fact. (I'm paranoid...I want a copy of everything I signed NOW)

I was amazed how many accomplished agents showed up...lured by prospect of free leads and big $$$$. In 2-3 weeks they were leaving....not an easy sell. Just about all agents were selling other products to keep themselves in money..but the turnover was very high.

Those leads....hmmm....best way to describe them is a "like a time-share lead". People expect a freebie but no interest in your product. Of course that WAR and PEACE length script you must learn is designed to warm up the dead. And you will find a few...but it takes stamina.

 

[77CH]

Yeah, when I saw the producer agreement was 46 pages long, I knew it was ripe for very careful reading. The 100 mile rule is pretty stiff, I frankly don't care for any non-compete clauses in a 1099 agreements. Thanks for the heads up on the leads, I had a feeling it was too good to be true.

You answered my biggest question: What kind of turnover do they have? I was also worried about the "war and peace" speech. They seem to put so much emphasis on it, I began to be concerned that I would be doing all the talking in the sales appointment - overall not a good idea.

Policy Doctor, thanks for the feedback. I believe you have saved me at least a month or more of grief.

 

[SportsNut]

If an agent is contracted through a FMO that was cut by AVIVA, he or she will still have to get a Release Letter from that cut FMO. Got that straight from AVIVA again today. So, yes they do need a Release.

Doesn't that just suck... One would think that if an FMO isn't producing the minimum and they are negatively affected as a result, then there sub agents wouldn't be held or restricted from seeking another FMO that is producing the minimum required. You would think that once Aviva breaks ties with the FMO, the subagent contracts would be null and void.

I would be willing to bet that the contract would NOT hold up under a test of law...

 

[Charpress]

I would be willing to bet that the contract would NOT hold up under a test of law...

This varies greatly from state to state. In my state, non-competes used to be unenforceable across the board. Then certain special interests whittled away at this through the Legislature until today non-competes are valid as long as the non-compete period is not more than two years and as long as a geographic area of non-competition is spelled out. If the non-compete spells out 2 dozen counties that you can't work in, that is OK.

 

[Brokers Alliance]

Doesn't that just suck... One would think that if an FMO isn't producing the minimum and they are negatively affected as a result, then there sub agents wouldn't be held or restricted from seeking another FMO that is producing the minimum required. You would think that once Aviva breaks ties with the FMO, the subagent contracts would be null and void.

I would be willing to bet that the contract would NOT hold up under a test of law...

Forethought only requires a signed letter from the agent stating that he/she wishes to be released from the IMO/FMO under the same scenario.

 

[tkirk97]

I wouldn't worry about not being able to work in a geographic region. That won't hold water. They cannot restrict you from working, in your field or proffession. Typically a no compete is just against those customers you currently have with the prior carrier or company.

 

[PacIncome]

Has anyone heard about Midland/NA not accepting any business right now?

Allianz discontinuing all EIA lines except MasterDex?

Aviva putting more IMOs on the chopping block?

Rating downgrade for Equitrust?

I can't get good information that can confirm or deny these rumors, any help would be great.

 

[insuranceexec]

Has anyone heard about Midland/NA not accepting any business right now?

Allianz discontinuing all EIA lines except MasterDex?

Aviva putting more IMOs on the chopping block?

Rating downgrade for Equitrust?

I can't get good information that can confirm or deny these rumors, any help would be great.

I heard Allianz was discontinuing SOME of their product offerings; not all.
Yes.
Yes, B+

 

[patch36]

Midland and NA only stopped taking the short term Fixed products. It is nothing to do with company stability, but rather the stability of the short term securities they have to invest in to back their short term products. Sales of the short term fixed products at Midland and NA ceased as of today.

 

[Charpress]

Aviva is not dropping more FMOs. They are very actively pursuing business.

Allianz has more money that it knows what to do with, which is why it put $2.5 billion into Hartford.

Allianz has improved its annuity lines, not dropped any. That would be better death benefits, no loss of guaranteed rollup for withdrawals on the MasterDex X, and so on.

If I had to put money somewhere, it would be in some select insurance companies. The market? no. Cash? no -whatever people keep in the mayonnaise jar is going to getting eaten up by inflation soon.