Farmers Agent "selling" Policies to Independent

[ColoradoIns]

I recently inherited my uncle's independent insurance agency in the event of his passing. It came to light that he was working with a farmers agent; the arrangement being that the farmers agent would write business through his companies, and the farmers agent would then take a cut of the commission. The farmers agent is now invoicing me and demanding a large sum of money, and I would like to get some perspective on this. It seems not only unethical; but I cannot understand how Farmers would allow something like this? Is this even legal? I am in Colorado by the way. Any and all responses are appreciated.

 

[Gulliver]

Just contact his district manager and tell the manager he is writing business outside his contract. If the DM doesn't stop him contact Farmers directly. He is in violation of his Farmers agreement so hopefully it is more important to him than the business he has been brokering through your agency.

Warn him first because he could lose it all if they enforce their contract.

With all this said I am assuming he is writing business through your companies that Farmer's would be able to write.

Good Luck!!

Gulliver

 

[WinoBlues]

It would be interesting to see what if anything is in writing as to their agreement.

I left a P&C agency many years ago. First thing the agent did was send a nicely worded letter to all the clients informing them of the change. That was smart.