Book of Business Question

agentpeke

New Member
4
I am going to be become a State Farm Team Member most likely under and Agent opening up a new office. He told me the book of business is under him but really State Farm owns it. If I start writing business for my friends and family, and later decide to open my own agency, am I allowed to write them insurance anymore? Would I be sued for doing so? I know it matters on what the contract says really, but even still, my dad would drop his policy in a second and follow me, or so would my brothers.
 
I am going to be become a State Farm Team Member most likely under and Agent opening up a new office. He told me the book of business is under him but really State Farm owns it. If I start writing business for my friends and family, and later decide to open my own agency, am I allowed to write them insurance anymore? Would I be sued for doing so? I know it matters on what the contract says really, but even still, my dad would drop his policy in a second and follow me, or so would my brothers.

It depends on who the ownership is for the book and the contract, just like you said. A non-compete is hard to enforce anyway but to say that people can't quit and follow you is absurd. You just can't go behind the company and solicit the current book. If someone wants to go to you and switch, SF can't help that. It would be reasonable, in fact moreso if you have a good relationship with the clients you brought in.
 
The reality is your family should be with the company that's the best fit for them, which may or may not be who you're working for at the time.

Ethically, any business you write for the SF agent shouldn't go anywhere else when you leave.

Legally, you're not supposed to take anything when you leave, but unless it's a serious amount of business, they're probably not going to do anything about it.

What you really should focus on is learning the business and learning how to prospect so that if you go out on your own you can start from scratch and know what you're doing.
 
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