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

[Agent 0]

I am hearing that BCBS of Minnesota won't allow agents to move FMO's if there contracted through either LeClair or IFC.

Are they allowed to not let me move?

Are there ways around this?

Side note, the person at BCBS that told me I couldn't move said that I'm with a "PGA" and that's why I can't move. I asked her what this meant but she has not yet returned my voicemail.

The FMO I am working to move over to says I would need to drop my old contract and sign a new one. I'm a young guy and new with Medicare and insurance in general and had to scrap for the relatively small amount of business that I have so I don't want to give it up. Any guidance would be greatly appreciated.

Thank you.

 

[T Sparks]

I am hearing that BCBS of Minnesota won't allow agents to move FMO's if there contracted through either LeClair or IFC.

Are they allowed to not let me move?

Are there ways around this?

Side note, the person at BCBS that told me I couldn't move said that I'm with a "PGA" and that's why I can't move. I asked her what this meant but she has not yet returned my voicemail.

The FMO I am working to move over to says I would need to drop my old contract and sign a new one. I'm a young guy and new with Medicare and insurance in general and had to scrap for the relatively small amount of business that I have so I don't want to give it up. Any guidance would be greatly appreciated.

Thank you.

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)

 

[n3417511]

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

 

[n3417511]

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

 

[NWSINS]

It is my understanding with Blue Cross of MN you need to have your own PGA contract or be contracted under one of two FMO's. In order to get a PGA contract, you will need thousands of members. I have around 750 members with Blue Cross and was told NO.

 

[n3417511]

Bcbs Mn is so hard to work with Hope that changes. Sorry to hear

 

[NWSINS]

I have no problem with Leclair. I get full commission, expense bonus, educational incites and I have a signed buy sell agreement in the event of my untimely passing. Maybe you need to have conversation with Richard.

 

[DonP]

I have no problem with Leclair. I get full commission, expense bonus, educational incites and I have a signed buy sell agreement in the event of my untimely passing. Maybe you need to have conversation with Richard.

What’s a signed buy-sell agreement with Leclair ? Do they pay your commissions directly and you don’t get paid directly from the carrier ? Do you sell sups or mapd ?

 

[NWSINS]

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.

 

[DonP]

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.

Cool I’ve never heard of up front agreement to buy a book .Thats a good idea . Is payout structured as a capital gain or income as it seems to be a lump sum .Just curious around what type multiple you negotiated? It seems the industry averages around 1.75-2.5 times commission . I’ll be working on setting a structure up very soon .