Captive Life Company and Selling Health

Jan 1, 2009

  1. Bitnis
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    Bitnis Super Genius

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    Can you work for say Mass Mutual or NYL and still sell major medical on your own? I thought it was one or the other. I guess there could be some major conflicts when it comes time to cross sell any of your clients.
     
    Bitnis, Jan 1, 2009
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  2. EdHead
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    EdHead Expert

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    I work for MetLife and they have a GA that allows me to sell health insurance. I would check with the whatever company you are looking at and see what they offer. As far as selling outside of the company that could be seen as selling away and cost you your job.
     
    EdHead, Jan 1, 2009
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  3. LGilmore
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    LGilmore Guru

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    Usually, a carrier will allow sales of product that doesn't compete with the house brand.

    Make sure however your E&O covers you for such sales. If the house is providing your E&O, you may not have coverage.

    Some companies will have marketing agreements with others as well.
     
  4. mybeloveds
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    mybeloveds Expert

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    interesting...
     
  5. CHUMPS FROM OXFORD
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    CHUMPS FROM OXFORD Guru

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    Oh brother.
     
  6. BNTRS
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    BNTRS Guru

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    Acting as a broker is not selling away, that's a securities industry no no, which only applies to a registered rep's or investment advisor representative's placing business or referring business to a different broker dealer or investment advisor.

    Most companies will let you broker business with other companies, but some are much more limiting about it than others. Some of the really big public company names limit your access to brokeraged business through a company endorsed IMO/BGA/MGA/etc. Most have stipulations in their agent contracts that would force you to agree not to broker business in any other fashion and face disciplinary action up to termination if you do.

    Some companies have such provisions in their agent contracts but they are rarely if ever enforced or followed. The major mutuals are all great examples. In some cases is depends on the mood the GA or Managing Partner is in.

    As has been suggested, make sure E&O covers the business you want to write. Anyone who wants to accept your brokerage business should do their due dilligence in ensuring that you have proper coverage.
     
    BNTRS, Mar 15, 2010
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