Contracting Questions

[GreenSky]

Rick, who is your AETNA FMO? (Please, no pm's) I still believe we should form a COOP!

I did not know Aetna requires an FMO. My contract is direct with the company. I can choose on a case by case basis to indicate the ID number of an FMO, or choose not to.

Because I work closely with Craig Ritter on other products (and I do have a pre-nup), I choose to put his ID on the applications.

To answer your question directly: www.ritterim.com.

As far as a coop, I'm trying to work an arrangement with Ritter to see if he will provide higher than street level for members of IHIAA along with a release letter. It's a win-win situation.

Rick

 

[theinuranceguy]

My business model has always been that indy agents should recieve

GA Contracts
Pay Direct from Carrier
Release (subject to charge back)

Indy agents cost a marketing organization nothing. Why would you cut there commission? No training, no lead support, no nothing... just answer the phone when they call...

Why would anyone cut commissions or force someone to work for them with no release...

It only hurts your agency in the long run...

I have been in the business for a while now, and helped build a very large FMO out of Dayton...

I ahve branched off since and have offered all my agents the above scenario... never had a problem...

I would agree that not releasing is very dishonest.

 

[retread]

No, Mr. Green Man we are not Dishonest.

... When we spend $100,000+ a year recruiting, and an agent finds another marketer that will give 5% more, I don't feel an obligation to give a release. ...


Joe Moore
National Senior Benefits
Asurco Insurance Marketing
PO Box 1954
Morristown, TN 37816
1-800-226-1004

I beg your pardon, but I am contracted with over a dozen carriers, yet only one FMO for a few of them (and I contacted that FMO on a referral).... how are you going to convince me you spend over $100K a year recruiting agents? I never heard of you before. Where is your advertising?

From your post I can guarantee you I will never consider your firm. I do appreciate your leaving your name and address so I will know who to avoid. So this is how you recruit?

You guys seem to be all alike... You don't pay a salary, yet you think you have the right to bind an agent to a one-sided contract. I happen to like my FMO, but then again, he does absolutely nothing for me. All he does is provide a website that allows me to download carrier info that I can get directly from the carrier site. It is a small convenience, but one I can live without easily. He does provide a sales seminar twice a year where he pitches the carriers he sells. Big deal... he does the same thing I do, and that is make sales pitches. He recruits agents to get an override on their sales efforts. I recruit clients to make a commission that he gets a share of. I certainly don't get any money from him, the carrier pays me. Talk about one-sided!!!

Most of us on this board are INDEPENDENTS not captives. You can't rope us into submission to be your slaves. Find another forum, cowboy.

 

[Joe Moore]

I beg your pardon, but I am contracted with over a dozen carriers, yet only one FMO for a few of them (and I contacted that FMO on a referral).... how are you going to convince me you spend over $100K a year recruiting agents? I never heard of you before. Where is your advertising?

From your post I can guarantee you I will never consider your firm. I do appreciate your leaving your name and address so I will know who to avoid. So this is how you recruit?

You guys seem to be all alike... You don't pay a salary, yet you think you have the right to bind an agent to a one-sided contract. I happen to like my FMO, but then again, he does absolutely nothing for me. All he does is provide a website that allows me to download carrier info that I can get directly from the carrier site. It is a small convenience, but one I can live without easily. He does provide a sales seminar twice a year where he pitches the carriers he sells. Big deal... he does the same thing I do, and that is make sales pitches. He recruits agents to get an override on their sales efforts. I recruit clients to make a commission that he gets a share of. I certainly don't get any money from him, the carrier pays me. Talk about one-sided!!!

Most of us on this board are INDEPENDENTS not captives. You can't rope us into submission to be your slaves. Find another forum, cowboy.

Where do you think you hear about New Products? From Advertising (mostly by IMOs).

Do any of you regularly receive any trade magazines, card packs, email blasts, flyers in the mail, or any more of the various ways the marketing force receives notification of new or existing products? What pays for these publications? Advertising. If a company waited or tried to afford all the advertising to announce their product, it would be obsolete before a lot of agents heard about it.

IMO's prospect for agents just like agents prospect for clients (by the way, I do both). I worked as a one-man show for about 8-9 years in this business as only a "ground-pounding" agent. I still make 6 figures of commissions on personal production. By the way, I love this business, and most of the people in it.

I see it from both sides, and I have NO PROBLEMS with the distribution network. We have many other IMOs making an override on some of our contracts, and I have no problems with their overrides as long as I am making a decent commission. I am just glad some of the other IMOs brought the products to my attention, so I could offer them to other agents and the public; and make some money off of them.

Do you guys that are making such an issue with this resent an insurance company making a profit off of your efforts? I don't, I want them to be profitable, so they can keep on doing what they are doing by helping me make a decent living.

As an IMO, I loved some of the news an insurance company gave us this week. An agent who would have never been hired by the company due to credit problems (we gave him an opportunity the company would not), has lost his license and we are responsible for his $3,500 debit balance. In the past years, we have paid off many agents debit balances, and this money has to come from somewhere. Being an IMO is not all peaches and cream, and waiting around to see when your tee time is.

As far as Kansas, we probably only have 4-5 agents in Kansas, but had an email blast go out Tuesday of this week in KS, MO, IN, and IL. Next week we will be blasting KY, VA, WV, and TN. This email blast was to announce a new easier underwritten final expense product. Kansas and other states agents can get top commissions through us, and we wanted everybody to know it was available. If you guys waiting on finding out about it from the home office, it may be this time next year.

Kansas has never been a focus for until this new potential dynamite product. And, by the way, an IMO can spend $100,000 a year just recruiting in one state.

Bash me, cuss me, accuse me of blowing smoke up your ..., accuse me of being dishonest, avoid me; it doesn't matter to me, we can always use more agents, but can also probably survive without a new one. It just shows me that someone doesn't understand the system. But, the IMO marketing methods work, are efficient for companies, mean more commissions for agents, and are here to stay.

If the IMO comes out at the end of the year with a profit, I have no problems with that. Even if I am a selling agent, I want my IMO to be profitable. I hope my IMO keeps getting great contracts; so I can continue to make more commissions from this efficient method of marketing.

Joe Moore
National Senior Benefits
Asurco Insurance Marketing
PO Box 1954
Morristown, TN 37816
1-800-226-1004
[email protected]
www.asurco.com

 

[Winter_123]

If the IMO comes out at the end of the year with a profit, I have no problems with that.

Joe Moore

That part we believe.

Winter

 

[Crabcake Johnny]

I think what you're missing is that we are all independent. Most of that time (95% - guessing) when new agents are contracted it is not disclosed that they are locked in.

I find that unethical. It should be apparent and disclosed. A lot of new agents would be more diligent in shopping for an IMO if it was known that they would be locked in. IMOs know this so it becomes their "dirty little secret."

As an independent I feel I should be free to more my contract at any time for any reason. Frankly, it's none of the IMO's business why I want to move.

The bottom line is when agents are treated fairly, compensated fairly and training properly a relationship is formed and they don't want to leave.

Agent want to leave when they are not treated fairly. Yes, a few boneheads will be "agency shopping" - forget about them. They rarely write anything worth talking about.

 

[xrac]

I think what you're missing is that we are all independent. Most of that time (95% - guessing) when new agents are contracted it is not disclosed that they are locked in. I find that unethical. It should be apparent and disclosed. A lot of new agents would be more diligent in shopping for an IMO if it was known that they would be locked in. IMOs know this so it becomes their "dirty little secret." As an independent I feel I should be free to more my contract at any time for any reason. Frankly, it's none of the IMO's business why I want to move. The bottom line is when agents are treated fairly, compensated fairly and training properly a relationship is formed and they don't want to leave. Agent want to leave when they are not treated fairly. Yes, a few boneheads will be "agency shopping" - forget about them. They rarely write anything worth talking about.

Much of the insurance business is based upon over promising, a lack of information, and the inexperience and ignorance of the agent or prospective agent. If people knew what they were getting into when they sign on with an AFLAC, Bankers Life, the Torchmark Companies, American Income, NASE, Ameriprise, Mega, Parker and Associates, etc. how many would sign on? These companies specialize in signing up the uninformed and some IMO's do the same thing. They capitalize upon an agents inexperience and don't make it clear up front what is required for a release or bury it in fine print. We read about it on here all the time. Agents usually want to change IMO's because they have been over promised and under delivered or because of poor service. If an agents understands releases why would they EVER want to sign with an IMO who will not provide a release when ask for period?

Since I personally know Newby that he vouches for Joe goes a long way with me. Newby is a straight shooter and that would indicate to me the Joe's IMO is a good organization. I am sure that Joe's feels justified in his release policy. However, Joe why would an agent who understands releases EVER sign want to sign with your IMO that will not provide a release when ask for if they have other choices that will?