Can a Company Refuse to Grant Immediate Appointment Releases if you are Terminated?

[FantasticMrFox27]

Good morning everyone,

Situation is pretty straight forward: licensed insurance agent has been working for a large, publicly traded organization for about 2 years now as a fully employed individual, but is looking to leave the company and either go out on his own or join another organization offering a 1099 working option.

The current company is already refusing to provide immediate appointment releases to agents who have recently resigned. Several colleagues in this situation right now, looking at a 3-6 month wait until their delayed release goes through, potentially screwing them for AEP.

I've been advised from a couple sources that if the company were to TERMINATE that agent, say, for no call no show or otherwise breaching company policy, then because the company terminated the employee, they would have no legal right to hold their appointments and would be required to grant them an immediate release.

Can anyone advise me if there's any truth to this?

Asking for a frien

 

[adjusterjack]

I've been advised from a couple sources

Were those sources attorneys who thoroughly examined your friend's employment situation and the possible contractual obligations of the employer?

I'm guessing no.

would be required to grant them an immediate release.

Required by who, or what?

Unless there is a statute or contractual obligation on the part of the employer, I would guess that the employer has no obligation to grant immediate release.

Does your friend have a contract with the employer?

As for any statutory requirement (assuming your friend is also in Georgia) it would be in the Georgia Insurance Code, if there was one.

Georgia Code Title 33 (2020) - Insurance :: 2020 Georgia Code :: US Codes and Statutes :: US Law :: Justia

By the way, you don't have to post the same thing twice. We all read all the forums.

 

[scagnt83]

Can anyone advise me if there's any truth to this?

Read the employment contract you (they) signed. Its in there.

So is the 3mo wait on release from carriers.

---

Im a life agent mainly, but I know in general, there are carriers that allow dual appointments. So call the carriers and ask. Or talk to the new upline and ask.

Also, no way you are appointed with every MedSup carrier out there.

Find a few to use this year, maybe they arent as competitive, but it will put food on the table.

Next time you choose to be an employee, read the contract. But dont worry, most of us didnt either. Fortunately I was with a captive carrier and cared less about the appointment.... it was the 3y non-compete that go me.... they tried to take me to court!! LOL

 

[scagnt83]

By the way, you don't have to post the same thing twice. We all read all the forums.

Not necessarily true. Many of us stay in our lane, or just lanes of interest.

 

[FantasticMrFox27]

The 6 carriers in question are the same carriers used by both companies, so getting other appointments is not an option - release from the previous appointments through the first carrier is the only option, or sit out for 3-6 months and wait for the delayed release.

I do realize it is in the contract he signed. However, several dozen other agents recently left the same company and were granted their immediate releases, well, immediately. It is only within the past month that this organization has decided to no longer provide immediate releases to agents who are quitting the company.

Sounds like he's kind of stuck, eh?

 

[goillini52]

The 6 carriers in question are the same carriers used by both companies, so getting other appointments is not an option - release from the previous appointments through the first carrier is the only option, or sit out for 3-6 months and wait for the delayed release.

I do realize it is in the contract he signed. However, several dozen other agents recently left the same company and were granted their immediate releases, well, immediately. It is only within the past month that this organization has decided to no longer provide immediate releases to agents who are quitting the company.

Sounds like he's kind of stuck, eh?

Who is the company that won't release you?

 

[scagnt83]

The 6 carriers in question are the same carriers used by both companies, so getting other appointments is not an option - release from the previous appointments through the first carrier is the only option, or sit out for 3-6 months and wait for the delayed release.

I do realize it is in the contract he signed. However, several dozen other agents recently left the same company and were granted their immediate releases, well, immediately. It is only within the past month that this organization has decided to no longer provide immediate releases to agents who are quitting the company.

Sounds like he's kind of stuck, eh?

If he is stuck on that one carrier, yes.

"Companies" (agencies) are a dime a dozen. Stop being an employee and go work for yourself. Your issue will be solved, both short term and long term.

 

[goillini52]

If he is stuck on that one carrier, yes.

"Companies" (agencies) are a dime a dozen. Stop being an employee and go work for yourself. Your issue will be solved, both short term and long term.

Remember, he's asking for a "friend".