End of Captive Agents As We Know It?

[VolAgent]

Legal industry targets insurance employers

Is this the end of captive agents as we know it? I know there is a exclusion in the law for insurance agents who work strictly for one company, they can be statutory employees. But I know of no such exemption for P&C agents.

Assuming these rulings stand or are affirmed by the Supreme Court, what is the future for Allstate, State Farm, Farmers, etc.? Will they go to larger and larger agencies so they really can say it is a business or will they have to bring back agent employees?

 

[adjusterjack]

They won't have to "bring back" agent employees. Their "captive" agents are already employees. It was inevitable that the IC gimmick would come back to bite them.

 

[sman]

It's definitely going to be interesting to see how it plays out. I've had conversations with a couple of Allstate agents. Unless things have changed, they aren't employees. However, Allstate does require a certain amount of production of certain products and they also require the number of hours they must be open. That sounds dangerously close to an employer/employee relationship.

 

[VolAgent]

It's definitely going to be interesting to see how it plays out. I've had conversations with a couple of Allstate agents. Unless things have changed, they aren't employees. However, Allstate does require a certain amount of production of certain products and they also require the number of hours they must be open. That sounds dangerously close to an employer/employee relationship.

I think Allstate is going to mega, multi location agencies to get around this, a la FedEx Ground. "See, we don't contract with individuals, but legitimate businesses with their own employees."

 

[AZDave]

All eyes are on the AMFAM decision and appeal. All new agents for them are W2. They have reserved 1.5 Billion for this possible payout - so I hear. What a contract says is one thing, but what the Carriers demand of their agents is the reality.

 

[adjusterjack]

It's definitely going to be interesting to see how it plays out. I've had conversations with a couple of Allstate agents. Unless things have changed, they aren't employees. However, Allstate does require a certain amount of production of certain products and they also require the number of hours they must be open. That sounds dangerously close to an employer/employee relationship.

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