Contracts with Frank Stastny

[GreenSky]

For those who might be concerned, there will not be changes in your contracting status nor commission levels. If you have questions or need help, please contact:Anthony Pelliccio, APelliccio@AgentConnection.net or by phone, 800.531.1411 x72406.Rick

 

[Midlevel]

Why would someone think there will be changes?

 

[GreenSky]

Why would someone think there will be changes?

Several agents have called and asked. Just wanted to reassure those who might have questions.

Rick

 

[Rearden]

Thanks Rick -- I appreciate it.

 

[scotte]

So do contracts transfer to Frank's upline automatically?

 

[GreenSky]

So do contracts transfer to Frank's upline automatically?

Right now it is business as usual. The contact information is Frank's upline and he is available to help.

The great news is that Jacqueline will be vested so any overrides Frank would have earned will remain with his wife.

Rick

 

[rousemark]

So do contracts transfer to Frank's upline automatically?

Depends.. Was Frank running his agency as a sole proprietor or a corporation?

 

[GreenSky]

Depends.. Was Frank running his agency as a sole proprietor or a corporation?

Not sure why this is even an important question. The contracts are all ultimately with the top level FMO.

Rick

 

[rousemark]

Not sure why this is even an important question. The contracts are all ultimately with the top level FMO.

Rick

If the business was a corporation and the contracts were with the corporation then they would stay with the corp as it did not cease to exist with Frank's passing. The corp would continue to receive overrides on new business that is produced unless the companies cancelled the contracts.

If Frank was operating as a sole proprietor, then the contracts ended with his death and overrides would roll up-line.

From your initial post, it really doesn't affect you but it does make a difference in answering scotte's question.

It might also make a difference in how some of you might want to structure your agency as far as succession is concerned.

Midlevel: The reason Rick's initial post is so important is there have been (are?) companies that terminate all downline contracts when the upline contract is terminated which meant if you wanted to continue to write business, you would have to sign a new contract and start all over. Commissions under the old contract would then be subject to the vesting provisions.

 

[GreenSky]

Let me make this as clear as possible. Frank is vested in all his renewals and his widow will continue to receive the commissions as his beneficiary.

This is exactly what I've been told and I have no reason to not believe it. I'm concerned that Jacqueline will continue to have an income which promoted my call to the upline.

rick