Contracts with Frank Stastny

[rousemark]

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

I am sure he was vested.. He had been in the business long enough he would have fully understood vesting and I doubt very seriously he would have signed a contract without immediate vesting.

The issue of being incorporated or not is an entirely different issue. It makes sense for some but not for everyone. Being incorporated makes it possible for the agency to continue in case of the death of the owner(s); not just the renewal income.

 

[Norwayguy]

I am sure he was vested.. He had been in the business long enough he would have fully understood vesting and I doubt very seriously he would have signed a contract without immediate vesting.

The issue of being incorporated or not is an entirely different issue. It makes sense for some but not for everyone. Being incorporated makes it possible for the agency to continue in case of the death of the owner(s); not just the renewal income.

Yes but can an agency contract continue to recieve commissions without a licensed person affiliated with it?

 

[360]

Yes but can an agency contract continue to recieve commissions without a licensed person affiliated with it?

I believe the surviving spouse has a certain number of months to secure a license. I know I've read that somewhere, just can't remember the time frame, was thinking it was 6 months.

 

[theinsuranceman]

I believe his wife will continue to receive present renewals, future renewals on new biz is a different story I think. It should all be in the contract though.

 

[GreenSky]

Bottom line is that Jacqueline will be taken care of. I've already spoken with his upline and we're all on the same page.

I can't believe I'm even "arguing" this. Nothing happens yet and if Jacqueline needs a license, she'll get one.

Rick

 

[Norwayguy]

Bottom line is that Jacqueline will be taken care of. I've already spoken with his upline and we're all on the same page.

I can't believe I'm even "arguing" this. Nothing happens yet and if Jacqueline needs a license, she'll get one.

Rick

No argument just curious as I need to check what happens if I pass.

 

[rousemark]

I believe the surviving spouse has a certain number of months to secure a license. I know I've read that somewhere, just can't remember the time frame, was thinking it was 6 months.

That is what the Columbian contract calls for.. but most contracts don't make allowance for that.

TN allows for a surviving spouse or and employee of a corporation to get a temp license that is good for 180 days.

http://law.justia.com/codes/tennessee/2010/title-56/chapter-6/part-1/56-6-111/

 

[Mattschmidt]

Curious also. I think at some point in the near future she may have to obtain an Insurance License

 

[rousemark]

No argument just curious as I need to check what happens if I pass.

No argument here either.. I accept what Rick is saying in its entirety.. My attempt was to answer the other poster's question about future business because the answer to that question does depend on how the agency was structured. Yes, it would be a good idea to check into what happens to your agency at death.. That is my point. There is more than just the option of vested renewals and for some people it would be advantageous consider them.
- - - - - - - - - - - - - - - - - -

I believe his wife will continue to receive present renewals, future renewals on new biz is a different story I think. It should all be in the contract though.

On most individual contracts there will be no future business because the contract terminates at the death of the agent.

However, if the contract is with a corporation, the corp doesn't die when the agent dies... The contracts remain in force (unless the company terminates it) and future business can be submitted.. Someone in the agency would have to be licensed.. this might vary in different jurisdictions.. but the stock holders do not have to be... In other words the wife could be the stockholder and hire a licensed agent as the COO..

 

[jdeasy]

If you had contracts with Frank you should already be familiar with Mr. Pellico. He is a good guy. I'm sure the ship has no rudder at the moment and that's to be expected.

I'm sure they will work it all out shortly.