BCBS MN won't allow me to leave my FMO LeClair

[NWSINS]

Asset purchase based upon commissions paid. Spouse will receive 50% of commissions paid over 48 months....so 2x multiple. Based upon your override numbers you throw out, LeClair makes around $225-250,000 per year on me. They obviously have a vested interest in me. With first right of refusal, my spouse could sell my book to the highest bidder.

 

[n3417511]

Maybe she could get her license so they can be transferred to her and let it go if she doesn't want to work it. My friend got the same offer from an agency in Minnesota. It's a good offer but I think I would rather transfer the book to one of my family members I made a will specifying this. Had my daughter get licensed and appointed as well. We all could die in a car accident Would hate to see a big book get destroyed. I have an even distribution of members with six different carriers and two FMO's. That wouldn't work for someone whom has members all over the place unless you are using one FMO. Le Claire didn't start well with the national carriers and most agents had and still have nationals with another FMO. Glad it works for you though. We've talked with CPA's and were told to let the book go and not sell it. Tax consequences for selling a business. My friend opted for monthly payments over a five year period to avoid big taxes.

 

[n3417511]

However… my friend is getting 5k a month for five years and 3500 social security for delaying until 70. Living the dream in Florida. God bless that women! She sold her business at age 70 sure made it big!

 

[DonP]

Asset purchase based upon commissions paid. Spouse will receive 50% of commissions paid over 48 months....so 2x multiple. Based upon your override numbers you throw out, LeClair makes around $225-250,000 per year on me. They obviously have a vested interest in me. With first right of refusal, my spouse could sell my book to the highest bidder.

So you're saying you do a 1000 Medicare apps a yr on your own pen ( 1000 x $250 an app =$250 k.If so that means your the # 1 agent in the country non telesales .

 

[Agent 0]

I don't think it's BCBS that is stopping you. In order to move now, you will need an immediate release from your FMO. Most FMO's don't give an immediate release. It's best to do this in Jan so you don't fall during the black out period. Without an immediate release, it takes 90 days to be moved. Now that is October and the black out period for insurance companies. That's why you can't be released now. I don't think it's BCBS decision

BCBS told me that they are the ones stopping me. I'm trying to get the woman who told me this over email on the phone today.

 

[Agent 0]

Why do you want to move Bcbs Mn to a new FMO? Most FMO's can't contract with the local regional carriers anyway. It's like you will need two FMO's. One for regional and one for national. Sometimes two FMO's are good because you get access to each

The FMO I want to move to is also local. There are a number of reasons.

 

[Agent 0]

I sell supplements, PDP, MAPD, individual and group health. Some of the commission are paid to LeClair and some are paid directly to me. The insurance company determines how the commissions are paid. All business is written under Leclair FMO and I am the agent of record. I have a signed release of business at anytime with them. In the event of my disability (can't pass AHIP) or death, they will buy my business based on our signed agreed multiple and pay my wife. My family has first right of sale refusal. Its a win win situation.

Try moving your BCBS business somewhere other than LeClair or IFC. I'm curious what they'll tell you.

 

[Agent 0]

If I were you, I would go to the new FMO and let them know what has transpired with the calls and or emails with BCBS. and let them walk you through what needs to be done to get the contract over to them....

This is what they are paid to do.

Side note (most people at a Home Office of an Insurance company.... most of the time could care less about helping in these matters)

The new FMO has been helping me through the whole process. They were the ones who informed me that BCBS may not allow me to make the move.