Carrier Banning Agency For Non-Compete

[Suzy23]

Hello, I own a small agency with two partners. One of our partners came from a large corporation where he had a large book of business & 80% of these policies where with one carrier. He has a non-compete with the corporation which is almost up. When he initially left this company, he moved to another brokerage and made an attempt along with the owner to BOR policies & pay the penalty that was in his non-compete. The carrier not only would not honor these BORes but dropped that agency. He then moved to a major national brokerage and this carrier changed their tune but he did not BOR any business.

We were appointed with this agency when he partnered prior and belong to a group that accesses different carriers. His Non-Compete is almost up & when he reached out to this agency regarding this - they did not respond for two weeks - and then their response was that we could not use them as a carrier for a reason that he didn’t submit loss history to get better pricing on an account 3 years ago.

For some reason this carrier has really aligned with his former brokerage & there are several clients that intend to sign BORes and move over - but this carrier has done some really shady things. A couple of our partners think we have a strong case against this carrier for a suit.

 

[NY independent]

Forget the lawsuit. Too costly and it doesn't guarantee a good outcome. Take the high road and move on to another carrier and hope that time will heal this purported wound with the carrier in question. Carriers are doing some really questionable things to agents today so be careful with challenging non-competes.

 

[Al3x Lee]

Agreeing with NY independent here.. It probably feels like the 'right' thing to do is to fight the insurer legally, but unfortunately there's the reality of doing that.

You're a small agency going against an insurance company, which one do you think has more cash and resources to fight that battle? Legal action can be extremely expensive, do you have the financial resources to engage in this battle? Once you're in, it can be hard to back out of, especially if you have other stakeholders or partners involved.

You also need to consider your future relationship with that insurance company, if the bridge isn't burnt already, this will certainly solidify it.

 

[Allen Trent]

Agreeing with NY independent here.. It probably feels like the 'right' thing to do is to fight the insurer legally, but unfortunately there's the reality of doing that.

You're a small agency going against an insurance company, which one do you think has more cash and resources to fight that battle? Legal action can be extremely expensive, do you have the financial resources to engage in this battle? Once you're in, it can be hard to back out of, especially if you have other stakeholders or partners involved.

You also need to consider your future relationship with that insurance company, if the bridge isn't burnt already, this will certainly solidify it.

Very sad to read this advice. I am considering canceling my check for your campaign for California insurance czar.

My vote was contingent upon the false belief you were going to take on all the big bad insurance carriers, but I am wondering now if they may have donated to your campaign

 

[shawnmwalker]

@Suzy23,

I bet $200 you don't have the full story. I bet your partner did something to burn the bridge. I bet the carrier has proof. If not, I bet the carrier simply does not want more business. Or the book had a bad LR. Or he swore at an UWer. or, or, or..... Simply put. Rewrite the PIF. It will take work. Start the leg work! Get it done.

 

[Al3x Lee]

Very sad to read this advice. I am considering canceling my check for your campaign for California insurance czar.

My vote was contingent upon the false belief you were going to take on all the big bad insurance carriers, but I am wondering now if they may have donated to your campaign

@Allen Trent , don't fret. My campaign platform is all about replacing the insurance companies... they'll no longer be a problem

To quote one of my posts last October:

Only a Democrat can win in California, and as we all know, I am a Democrat. I'm more Democrat than any Californian Democrat, as I'm not only a Democratic Socialist, but a Neo Progressive Democratic Socialist.

I believe in rainbows, free healthcare for all, and turning the entire economy into a never-ending potluck dinner where the government brings the main course, dessert, and maybe even your favorite snacks. Safe spaces will be provided for all, especially for @Markthebroker , as he really needs one.

Why not combine capitalism, socialism, and a dash of fairy dust to create a utopia where unicorns and leprechauns pay taxes, and the government provides free college education, universal healthcare, and ponies for everyone?

The path to get there is simple, and it all starts with the first step, adopting a dream, actual cash value.