Few ?'s on GA's in the MA arena...

Sep 26, 2007

  1. MIBizInsurance
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    Wife and I will be meeting with following GA -UIG Brokerage Division

    Chose because they are about 45 mins from house so face to face is an option.

    As I sell for a niche market commercial P&C company I do not have allot of experience with choosing a GA.


    What questions are important to ask?

    Know on the Life side you can contract with multiple GA's for certain companies. Does this hold true for MA?

    What happens if she go's with this crew then next year she finds another GA? Can she simply change or is this something that is controlled by the GA and the contract you signed prior?

    Ask as know on the health side you can be held in limbo for a period if the GA chooses to hold you and there was no pre-nup so to say. At least thats how was sometime ago.

    They also have a captive side and were going to hear that pitch also. Only considering that as with the short time to ramp up getting her up to speed quickly is a consideration. She is well versed on the health side but as far as this product and marketing she is green.


    Thanks again, you folks are a great help!!
     
    Last edited: Sep 26, 2007
  2. GreenSky
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    The biggest question is:

    "Will you provide me with a letter stating that upon request, I will be released from any contract?"

    For me, refusal of this "pre-nuptial" is a deal killer.

    If you go captive,you might have the same issue as being independent. Should you wish to change to another FMO, without this letter you might have to stop writing for 6 months to a year.

    And, you never will see this as part of your contract. It's a very dishonest arrangement.

    Rick
     
    GreenSky, Sep 26, 2007
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  3. policy doctor
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    UIG has a semi-captive side for 2years, before you are vested.

    but look, why not interview, ask your Q&A's, take notes, get the contract paperwork and take it home and read it.

    Then decide.

    Then call them back with more Q&A....and do what comes naturally...for you. (lol)

    I know they use UHC/Secure Horizons, Care Improvement, Penn Treaty and Allianz...and a couple more like Occidental.

    You need to ask yourself, what is your wife bringing to the table, if she is green.
     
  4. MIBizInsurance
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    So that I understand this -

    If you go with an FMO/GA and you recieve horrid service they can hold you for 6+months?

    What do you do in that case say -"I want out" continue to write biz then in 6 months you get release? That is if they choose not to release you.

    Is the pre-release letter something simple as -

    "We will release you from all current contracts held through ABC GA"

    Can any share a re-lease letter that you use.

    Not to overly concerned about it but I soon (3-6months) will be leaving my Commercial company to go on own on the health side and want to make sure I understand this side of the biz.
     
  5. GreenSky
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    They don't hold you for 6 months after you give notice. You are totally screwed! Without a release, the only way to leave them is to not write for 6-12 months! It wouldn't be too bad if you could give 6 month notice but that's not the way it works.

    Any good FMO should be willing to give you the release letter and the wording is similar to:

    "We will unconditionally release you from any and all contracts." They have the right to protect themselves with some wording about advanced commissions, etc.

    Some FMO's will not release under any circumstances. There is no point in naming them because in the absence of a release letter, don't bother signing up with anyone.

    I have a few people I work with. The FMO that provides this letter, top contracts and (amazingly) great training and really adds some value is Craig Ritter. The website is Ritter Insurance Marketing. But I work with others as well.

    Again, my biggest concern is the pre-nup letter. I've been screwed by Bob Bever (RBI) in Arizona. The former made me wait 6 months for Secure Horizons and then won't pay me renewal commissions on other products I wrote through his office. The latter not only kept me from writing business, but stated he no longer wanted to work with me and still wouldn't give me a release. Both these jerks made me wait 6 months without writing business before I could move a contract.

    Senior Market Sales gave me a pre-nup letter after the fact. They are a class act. Rex Snyder ([email protected]) is another good person with which to work. I'm sure there are others (including myself for Secure Horizons), but these guys are the ones I know.

    Rick
     
    Last edited: Sep 29, 2007
    GreenSky, Sep 29, 2007
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  6. Winter_123
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    How does captive work in this instance? Are you saying that the person will not be able to write for 6 months because they probably contracted with the major MA players through the FMO and there is no other place to go because the FMO can hold you captive with all the major companies?

    What if a person goes through an FMO but only contracts with one company such as Secure Horizons. What would be the situation there? The agent would be captive on Secure Horizons but if they just left their affiliation with the FMO can't they just go off and contract with a different FMO for a different carrier such as Humana or American Progressive?

    Not familiar with the MA world so I am asking here, not saying.

    Winter:cool:
     
  7. retread
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    In regard to contracts:
    It depends on the carrier's protocol. For example, with Coventry, you must send the company transfer/release form to your upline and distribution partner (FMO) and get their signature. They may or may not grant your transfer or release.

    1)If you are in the first 12 months of the contract, regardless of production, you can make a lateral transfer (FMO agrees), but you will have to stay with them for 6 months and remain at the same level. OR

    2)After 12 months of contract AND with NO production, you are home free with or without a release from FMO. OR

    3)After 12 months of contract WITH production, you must get release and transfer at the same level and remain there for 6 months. In the intervening 12 mos. you can continue to write under the present contract. (There are some more mumbo jumbo items, but this is the gist of it.)

    Furthermore, these forms (transfer and release are separate forms) must be signed, dated, and receipt stamp is when it gets to the BSU, not when you begin the paperwork.

    My advice: Don't sign any contract with blank signature lines. Make them provide all names and signatures. (Make sure they print their names so it is legible).

    Get the protocol from the carrier you are contracting with.
     
    Last edited: Sep 29, 2007
    retread, Sep 29, 2007
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  8. MIBizInsurance
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    Rick,

    Thanks for the prompt and informative reply.


    You made mention of advanced commisions. Now the way I understand it is you should always make sure that your getting paid via the carrier and not a check from the GA.

    Having said that if you leave a GA do you loose out on your renewals written under that GA even if your being paid as described above? (Paid directly by carrier)

    Confused as have read threads where agents are asking where to find best contracts and sounds like they move with some ease.

    I take it everything were discussing here applies to the health side also?

    Understand that you can contract through multiple GA's for a many Life companies so not a huge concern there.


    Thanks agian.
     
    Last edited: Sep 29, 2007
  9. GreenSky
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    Typically you do not need releases for life contracts and are free to move anytime. It's the FMO system (vs. GA) that is a problem.

    My issue with renewals was the the MA carriers paid the FMO who then paid the agents. The a-hole refuses to honor my contract and in order to sue, I need to know who is still in force, etc. The carriers (2 of them) won't tell me because basically, I'm NOT the agent!

    Rick
     
    GreenSky, Sep 29, 2007
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  10. MIBizInsurance
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    Yep, I ask questions as do not walk blindly into anything.

    No biggie.
     
    Last edited: Oct 4, 2007
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