Commission chargeback on Inforce policies?!

[Cake8D]

Hi everyone

I worked for a life insurance company for the last 4 years, and did well. I left the firm about a year ago for another life insurance company with better tools and resources. Last week I got a letter from my previous employer telling me that I must payback all the commissions I earned in my 4 years of employment there. Approx $70,000 and I have 15 days to come up with the money or they will put it on my credit report and send it to collections. I had a non compete and non soliciting clause in my contract. The previous firm kept all the clients and policies and I haven’t replaced any or had any clients come with me.

my question is, all my previous policies are still in force a new agent is collecting trails on them, and they have kept the clients. How can they ask for my commissions over the last 4 years back when non have lapsed? Curiously many of my former colleagues have also left the firm and they all received the same letters however they are now sending them to my new employer. My former colleagues all didn’t payback anything and only received one letter while I have gotten 4, I feel like I’m being singled out. When I left they told me they would pay me for the polices and rollovers I did my last week of work they owed me approx $7,000. I had to file a complaint with the labor department in my state it took about 3 months but I eventually got my last paycheck. Could this be the reason they are aggressively trying to make my life uncomfortable?

Side note since I left in the last year my previous firm has been sold, don’t know if that has anything to do with this, either.

any advice would be great thank you all in advance.

 

[goillini52]

Hi everyone

I worked for a life insurance company for the last 4 years, and did well. I left the firm about a year ago for another life insurance company with better tools and resources. Last week I got a letter from my previous employer telling me that I must payback all the commissions I earned in my 4 years of employment there. Approx $70,000 and I have 15 days to come up with the money or they will put it on my credit report and send it to collections. I had a non compete and non soliciting clause in my contract. The previous firm kept all the clients and policies and I haven’t replaced any or had any clients come with me.

my question is, all my previous policies are still in force a new agent is collecting trails on them, and they have kept the clients. How can they ask for my commissions over the last 4 years back when non have lapsed? Curiously many of my former colleagues have also left the firm and they all received the same letters however they are now sending them to my new employer. My former colleagues all didn’t payback anything and only received one letter while I have gotten 4, I feel like I’m being singled out. When I left they told me they would pay me for the polices and rollovers I did my last week of work they owed me approx $7,000. I had to file a complaint with the labor department in my state it took about 3 months but I eventually got my last paycheck. Could this be the reason they are aggressively trying to make my life uncomfortable?

Side note since I left in the last year my previous firm has been sold, don’t know if that has anything to do with this, either.

any advice would be great thank you all in advance.

Sounds like they're trying to see how many agents are foolish enough to pay them. A lot of seniors get "Final Notices" from magazine subscriptions, even though they never subscribed, because they know that many will just pay it to avoid the hassle.

Ask them to show you WHY they feel you owe that money.

Who is this unsrupulous company?

 

[Cake8D]

Thank you for the reply, foresters financial. They were first investors when I joined, since I left they were sold to cetera. If this does go on my vector report it will stop me from being appointed to new carriers is my biggest concern. They added in the letter if I pay back the $70,000 they will give me my trails going forward, which was about $800 per month when I left. I don’t have $70,000 just laying around.

 

[goillini52]

Thank you for the reply, foresters financial. They were first investors when I joined, since I left they were sold to cetera. If this does go on my vector report it will stop me from being appointed to new carriers is my biggest concern. They added in the letter if I pay back the $70,000 they will give me my trails going forward, which was about $800 per month when I left. I don’t have $70,000 just laying around.

I don't understand how they can ask for the return of advances that have been repaid.

Just in case... hurry up and get contracted with some more companies.

 

[fed up]

Definitely ask for a copy of the contract you signed which states chargeback timeframe and an accounting of each policy and the commission paid. Chances are they won't have at lease 1 of those items, most likely the signed contract

 

[Cake8D]

I can’t find an example of this kind of think happening. I can understand if the policy lapses or was replaced but they are still Inforce and clients are still paying premiums. The other curious thing is the number they listed hasn’t changed since I left over the last year as clients have been paying their premiums shouldn’t that number be much lower? I’m thinking I should talk to a attorney or should I just ignore it like my former colleagues?

 

[Todd King]

Thank you for the reply, foresters financial. They were first investors when I joined, since I left they were sold to cetera. If this does go on my vector report it will stop me from being appointed to new carriers is my biggest concern. They added in the letter if I pay back the $70,000 they will give me my trails going forward, which was about $800 per month when I left. I don’t have $70,000 just laying around.

You'll need to tell them to send stuff to you in writing showing how you could possibly owe them any money at all, much less $70K! Then let's see if they can show that to you. If they can't, tell them to pound sand.

I'm sort of wondering if this might be some sort of computer glitch.

 

[fed up]

Contact the company and get an accounting of each policy you sold and the current status of the policy. If the company replaced your business you may not need to repay. But the paperwork trail is going to be your best friend in this situation. Copy of contract you signed, accounting of policies

 

[Cake8D]

Thank you everyone! I’m going to give them a call with my manager tomorrow I’ll update afterwards.

 

[rousemark]

Pay an attorney to send them a pond sand letter.. Probably get it done for $100.