Bankruptcy & Contracting

[djs]

NYL wants you to be securities licensed, very difficult with a recent bankruptcy.

And whether you agree or not, a recent bankruptcy does reflect on a person in a negative way. If I had a choice of giving my personal information to an agent that had a recent bankruptcy vs one with stellar credit, which would I choose?

I know a lot of people recently that have filed bankruptcy. Most of them I would trust with my life savings, but I know them personally and know the circumstances around their problems.

Truthfully, a lot of people are under a LOT less financial stress after bankruptcy then they were before bankruptcy. But, it is still an indicator of a problem. Time heals this problem pretty quickly though.

Dan

 

[Josh]

any company that would not appoint do to a bankruptcy is one that I wouldnt want to write for. What does bankruptcy have to do with an agents ability to help a client? Nothing. Also Bankruptcy has nothing to do with charachter.

Best Wishes

Joe, you've cleaned up your tone and it's been cool, but this one made me laugh, and laugh, and laugh. and laugh.

Plenty of decent respectable companies won't appoint with recent bankruptcies, and for good cause.

Most people who consider themselves good people would be willing to steal so their family can have food to eat, so why wouldn't they have their judgement at least somewhat clouded when they are presenting products.

Also, folks who have bankruptcies are a poor credit risk, it's not a good business decision to lend credit (advances, products, etc) to folks who are already a terrible credit risk.

Bankruptcy happens to plenty of good people for a variety of reasons, but it's understandable why carriers would not want to work with them until things cleared up.

 

[pahealthquotes]

Joe, you've cleaned up your tone and it's been cool, but this one made me laugh, and laugh, and laugh. and laugh.

Plenty of decent respectable companies won't appoint with recent bankruptcies, and for good cause.

Most people who consider themselves good people would be willing to steal so their family can have food to eat, so why wouldn't they have their judgement at least somewhat clouded when they are presenting products.

Also, folks who have bankruptcies are a poor credit risk, it's not a good business decision to lend credit (advances, products, etc) to folks who are already a terrible credit risk.

Bankruptcy happens to plenty of good people for a variety of reasons, but it's understandable why carriers would not want to work with them until things cleared up.

I understand what your saying but I agree to disagree. I've lost my life savings twice before the age of 30 with business investments that failed. No risk = No reward. anyway we all learn from our mistakes and bankruptcy is a far cry from someone convicted of a felony or financial crime.

 

[669comche]

I have heard this issue before.......I don't agree with the whole credit thing when working.

More likely to steal? Maybe. But why steal a clients check for $200 when you can turn it in and make $600 commission (for example) there is no logic to it. And no matter what policy they have the ones that are going to steal are going to steal REGARDLESS of whether they are appointed or not.

We know that smoking kills along with obesity. Ever been to a Dr that smokes/is overweight?

His personal circumstances have nothing to do with his ability to perform the job that he has been trained to do.

 

[Crabcake Johnny]

I totally disagree with credit being used unless your are directly in control of money.

Selling health, for example, does not involve any financial transaction between me and my client.

That I might act in an unethical manner because I filed for BK or have a poor rating? That's a HUGE stretch.

Bernie Madoff wasn't exactly hurting for money. Bet his credit score was great too. An agent with a 780 score can be an unethical pig while an agent with a 450 can be a fantastic agent.

I've love to see some hard studies where carriers can draw a direct line between credit scores and ethics. Those studies don't exist. It's innuendo and supposition.

 

[Jake07712]

While many good people have gone bankrupt, like it or not, right or wrong, it reflects upon a persons financial stability. Many companies want to know about judgements against you when you apply for a contract with them. I can only assume that it has to do with the carrier's own experience and philosophies. A carrier looking for captive agents may be looking for a certain type of stability which they feel would give an individual a better chance of success as an agent before they are willing to invest their time and money.

 

[djs]

Doesn't really matter whether you agree or disagree. It's a fact of life.

Also, its not just money you are dealing with, its peoples personal information. This is why its a bigger issue.

Dan

 

[669comche]

I'll post this again since no one seems to answer this:


"We know that smoking kills along with obesity. Ever been to a Dr that smokes/is overweight?"

His personal circumstances have nothing to do with his ability to perform the job that he has been trained to do.

 

[Todd King]

MattC,
I wouldn't worry about it too much. I get agents contracted that have had bankruptcies and that's almost on a daily basis. Very few are actually turned down. Those who are have something else wrong on their credit report than a bankruptcy. The companies you might have trouble with are not your typical FE or Med Supp companies.
If you can get contracted with Mutual of Omaha, that would be the test as they are a little more credit stringent than other companies of this ilk.

 

[djs]

I'll post this again since no one seems to answer this:


"We know that smoking kills along with obesity. Ever been to a Dr that smokes/is overweight?"

His personal circumstances have nothing to do with his ability to perform the job that he has been trained to do.

If I had a fat doctor telling me to lose weight, it would have a LOT less credibility.

If I had a person selling me a financial product and I knew he had a bankruptcy, bad credit, and was generally a dead-beat, I wouldn't believe what he told me.

It does make a difference. Not necessarily with knowing the right thing to do, but with the conviction with which the person believes it and the image it portrays.

In this case, you have to think about the 6:00pm news. Headline is 'Insurance company loses clients personal information'. After a bit of research, its traced back to a single agent who has a felony record, a bankruptcy, whatever. Makes for bad press for the company, since a lot of people would sit back and say why would they hire someone like that, even though any particular individual could be great.

The problem is, perception isn't always reality. Reality isn't always perception. Life goes on.

None of this stops someone from moving forward, just might limit some choices.

Dan