Contracting with an IMO?

[IMeditor]

I am a little confused about the relationship between an independent agent and their brokerage, and I would really like to learn more. I have some questions, but any information at all would be helpful. Thanks!
When an independent agent goes to work with an IMO/BGA, what are the steps involved? Do they have to sign a contract? When they want to leave that BGA, or decide to work with multiple BGAs, how do they get out of the contract?

 

[ims01]

Most IMO's do not require a contract unless they are giving you something considered proprietory. But, the contract would be limited to that material.

You contract with carriers through the IMO. If in the future you would prefer to work with another IMO with the carrier, many carriers will allow dual contracts.

A brokerage relationship is not "captive". You are free to obtain contracts with other carriers through other IMO's at any time.

 

[insurancedoc]

Follow-up question to Ed's response.Ed, so can an independent agent sign-up with two or more IMO's ? As an example, Say one IMO specializes in marketing to annuity & UL prospects. While another IMO specializes in marketing thru College Funding Seminars?Can one join a couple of IMO's at the same time? Thanks

 

[Mark]

Follow-up question to Ed's response.Ed, so can an independent agent sign-up with two or more IMO's ? As an example, Say one IMO specializes in marketing to annuity & UL prospects. While another IMO specializes in marketing thru College Funding Seminars?Can one join a couple of IMO's at the same time? Thanks

You can sign up with as many IMO's as you like. You are not captive. But most insurance companies will only allow you to sign up with 1 imo per company.

Example

IMO1 U SIGN UP WITH AMERICO
IMO2 U sign up with Fidelity
Imo3 u sign up with United Home Life.

But you cant sign up with United Home Life with Imo2 and imo3 at the same time.

 

[moeasadi]

Does anybody recommends 3 Mark Financial. I currently work with Crump (formerly Bysis) for Life insurance.Thanks

 

[insuranceexec]

Does anybody recommends 3 Mark Financial. I currently work with Crump (formerly Bysis) for Life insurance.Thanks

I know the people at 3 mark well. If you are new and need a great deal of case design; they may be for you. With that being said tell me what you are looking for in an FMO and I will give you my opinion.. Happy Hunting and Merry Christmas

 

[padthaiforlunch]

West Coast Life and some other large carriers will allow you to be contracted with them through multiple IMOs.

IMO1 U SIGN UP WITH West Coast Life
IMO2 U sign up with West Coast Life
Imo3 u sign up with West Coast Life

You can sign up with as many IMO's as you like. You are not captive. But most insurance companies will only allow you to sign up with 1 imo per company.

Example

IMO1 U SIGN UP WITH AMERICO
IMO2 U sign up with Fidelity
Imo3 u sign up with United Home Life.

But you cant sign up with United Home Life with Imo2 and imo3 at the same time.

 

[moeasadi]

I know the people at 3 mark well. If you are new and need a great deal of case design; they may be for you. With that being said tell me what you are looking for in an FMO and I will give you my opinion.. Happy Hunting and Merry Christmas

Thanks William, I am new as a financial adviser with Waddel & Reed and they are contracted primarily w/ Nationwide and then Crump GA.
I just want to make sure I am starting at the right place , so I keep relative independence and my book of business. In this market I mainly sell life & health nd should I have a client for financials, 3 Mark are contracted with 3 broker/dealer.
Thanks for your input.

 

[insuranceexec]

Thanks William, I am new as a financial adviser with Waddel & Reed and they are contracted primarily w/ Nationwide and then Crump GA.
I just want to make sure I am starting at the right place , so I keep relative independence and my book of business. In this market I mainly sell life & health nd should I have a client for financials, 3 Mark are contracted with 3 broker/dealer.
Thanks for your input.

In being new with Waddel & Reed make sure they tell you of all the regulatory actions taken against them about two years ago involving those "Nationwide" VA's. I only say this to you so that you are not surprised when you are hit with it by a prospective client. A bunch of people went to prison, including people here in Arkansas, for the shenanigans they pulled.

Happy Hunting.......

 

[jwilson]

You can sign up with as many IMO's as you like. You are not captive. But most insurance companies will only allow you to sign up with 1 imo per company.

Example

IMO1 U SIGN UP WITH AMERICO
IMO2 U sign up with Fidelity
Imo3 u sign up with United Home Life.

But you cant sign up with United Home Life with Imo2 and imo3 at the same time.

As a follow-up question. So if IMO 1&2 both o ffer say Fidelity can you still contract with both, but then only be appointed through IMO 1 or how does that work? Also, I've heard that some companies impose a waiting period on selling their products if you switch IMO's. True? If so, how does that work? Thanks in advance.