Duford Insurance Group vs. Digital BGA for Final Expense Telesales

[Newby]

I'm sorry-Newby Guru-you are actually being civil and I still had my fists up still because of the hateful comments. I still say that isn't standard though.

I can assure you that it is absolutely standard and I have been instrumental in making it a common practice. Some insurance carriers have even made their own release forms with that verbiage in there. At least one of them at my insistence.

Many agents that are bouncing from one agency to the next are failing out. They know they are about to leave a big pile a debt they are not going to pay off and want to bounce to a new IMO so they build a big pile of debt over there with different carriers. Often flipping biz that they wrote under the old IMO to a different one with the new one. Then they exit the industry and come on forums and say how it's all a scam and no one really makes any money while us IMOs have to pay back the $50,000 they dumped on us.

 

[Newby]

Read right above the signature on this company form.
[EXTERNAL LINK] - Adobe Acrobat

Here is another one: [EXTERNAL LINK] - Oxford Debit Liability Release Final.pdf

 

[Todd King]

I'm sorry-Newby Guru-you are actually being civil and I still had my fists up still because of the hateful comments. I still say that isn't standard though.

 

[CLTX]

Yeah but Newby Guru, for every one of those there are more agents that leave their future commissions behind to balance it out. Correct me if I am wrong but in general most agents leave more commissions on the table than debt-do they not? I am not saying that the people screwing you-that, that is right, but it isn't worth making that prohibitive contract.

 

[CLTX]

I never saw that before JRoot but obviously it exists. I just don't believe that that is fair. I think that commission is like insurance itself-spread risks that pan out overall in your favor-maybe just not the one or two.

 

[Newby]

Yeah but Newby Guru, for every one of those there are more agents that leave their future commissions behind to balance it out. Correct me if I am wrong but in general most agents leave more commissions on the table than debt-do they not? I am not saying that the people screwing you-that, that is right, but it isn't worth making that prohibitive contract.

No. When you leave you are still paid your renewals directly from the company. And no one has enough renewals to cover chargebacks. Usually the leaving agent is like you. Pretty new. Thinks that something that is just standard practice is a personal attack on them. And is out to get somebody. Well not always. 99% of the agents I have ever released are still friends with me today. But sometimes there is a misunderstanding just like you have here.

But my question for you is, why did this even seem like a problem to you? Did another agency not want to accept you over it? I've never run into that when releasing anyone. But I have to admit I usually don't sign releases when accepting agents from other agencies. Not unless I know a lot about them. I don't go after other agencies agents to start with. I just have agents sell different companies which are usually better than what they had before anyway.
I have had agents get all worked up that want to come to me and can't understand why I don't want to sign a release contract accepting their Americo to come over. They don't need Americo in the 1st place and the pyramid-style agency they are leaving is going to attack every Americo policy they ever wrote and try to flip the biz in the 2nd place. But agents who haven't been around a while don't understand that kind of stuff.

 

[Todd King]

Yeah but Newby Guru, for every one of those there are more agents that leave their future commissions behind to balance it out. Correct me if I am wrong but in general most agents leave more commissions on the table than debt-do they not? I am not saying that the people screwing you-that, that is right, but it isn't worth making that prohibitive contract.

But what if said agent decides to roll that business to a new company after they have switched uplines? That could leave the old upline with a slew of debt to cover.

 

[WinoBlues]

I don't know how to get your comments at the top of my posts so I will just copy and paste.

CLTX Expert, See that blue button below that says 'QUOTE'? press it. that will quote this post to me instead of the entire forum.

 

[goillini52]

CLTX Expert, See that blue button below that says 'QUOTE'? press it. that will quote this post to me instead of the entire forum.

WinoBlues Guru, you should be nice to Karen.

 

[CLTX]

CLTX Expert, See that blue button below that says 'QUOTE'? press it. that will quote this post to me instead of the entire forum.

Got it WinoBlues. Thanks.When the agent leaves though-why don't you just write into the contract that they forfeit the back of the year pay to make up for any chargebacks. So they keep the 9 months up front but don't get the other 3 months. Then everything balances out-no? Also..I am not smart enough to understand contract law but the way someone explained it to me-that isn't legally binding for the insurance carrier to make you the person who is the defacto debtor if the agent doesn't pony up because that is making someone a co-signer after the fact. They would have to cancel the first contract 1st.- as I have been told