- 6,026
You will see it when you do the contract when signing up.
5.6 Non Solicitation is a mine field. My attorney said they could restrict my entire agency with that clause. Be aware.
Fex Contracting or the Insurance Squad
- Thread starter Kayla Hall
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- final expense insurance
You will see it when you do the contract when signing up.
5.6 Non Solicitation is a mine field. My attorney said they could restrict my entire agency with that clause. Be aware.
- 4,872
Same thing, but much worse, for someone prepaying for their funeral in full down at the funeral home. If the funeral home goes out of business then person who prepaid just lost their $8k-$10k right? Newby can tell us about the funeral homes.
If a person pays Legacy $3 per month that's $36 a year. After 10 years the client has only paid in $360! Why would any sane rational person not jump at the chance to pay just $3 per month to get an approx. immediate savings of about $3k-$4k on their funeral? GI gets immediate savings also. After 10 years they would have paid in ONLY $360 and their casket, vault, and monument is still locked in at $3500 (even if they live 50+ more years) but the funeral home after 10 years may be charging $10k+ for a casket, vault, and monument. Louis you either don't understand how Legacy is a HUGE savings for Ms. Jones on her funeral or just picking at it because you can't offer this savings to your customers you write with other carriers.
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- 4,872
Well said.
- 2,627
Gullible.
Word of the day.
Guliable
Word of the day.
Guliable
- 4,872
I'm confused. Restrict your agency from what?
- 4,872
Louis, when Legacy is presented properly, Ms. Jones WANTS Legacy with her policy. That's why it's safe to say our agents will get an extra 1-2, sometimes maybe 3 extra sales per 20-25 leads worked. There is more to the story besides the HUGE savings on the casket, vault, and monument.
- 6,026
Read it . . .
Can't market to your clients any other type of Insurance - anykind - if you also put that client into a SL policy.
Also - any sub agents that you bring on that appoint with SL are restrictive.
I tried to get the dude in contracting to amend it - but, he wouldn't.
- 6,026
Section 5.6 Non-Solicitation. You hereby acknowledge that during the course of your contract with us, you and your Sub-agents will acquire confidential customer lists, customer information, and develop valuable relationships and goodwill with Customers, Prospective Customers, employees, and agents of the Company. Therefore, in order to protect these valuable relationships of which we have devoted significant financial, human, and other resources to develop, during the term of this Agreement and for a period of two (2) years after the termination of this Agreement, you, your employees, agents, Sub-agents, or others acting under your supervision shall not:
- Except on our behalf, directly or indirectly (including the acceptance of commission income), whether on your own behalf or on behalf of any other person or entity, solicit, attempt to solicit, have contact with, or direct any person to solicit or contact, any of our Customers or Prospective Customers with whom you, your employees, agents, Sub-agents, or others acting under your supervision have had Material Contact, for the purpose of selling any type of life insurance product or service; or
- Solicit, influence, or aid any other company, person, entity, or manager in recruiting or soliciting any of our employees or agents to terminate their employment or engagement with us nor employ, partner with, engage in any way, or aid any other company, person, entity, or manager in recruiting or soliciting any of our employees, agents, or former employees or agents within two years of their termination with us. Receipt of compensation from business written by any agent, Sub-agent, employee, or others acting under your supervision shall be conclusive evidence of such solicitation; or
- Except on our behalf, directly or indirectly, whether on your own behalf or on behalf of any other person or entity, solicit any Vendor of the Company for the purpose of purchasing products or services to support a competing insurer.
- 6,026
Section 5.8 General Remedies And Damages. If you violate any of the terms of this Agreement, in addition to all other remedies available to us at law or in equity, you shall immediately forfeit any and all commissions to which you otherwise may be entitled under Section VII below. You agree that monetary damages alone are not sufficient to fully compensate us and we shall be entitled to immediate injunctive and other equitable relief, without bond and without the necessity of showing actual monetary damages, enjoining you and each and every party connected with such violation (including your Sub-agents) from the continuance of such violation and, in addition thereto, we shall be entitled to legal damages, including the court costs, attorney's fees, and litigation expenses incurred by us. Notwithstanding our proprietary interest in our Customers and Prospective Customers, we recognize that upon termination of this Agreement, certain of our Customers may choose to sever their respective relationship with us in favor of you or any person engaging you after the termination of this Agreement. As such, and in further consideration of your engagement of services as an agent for us, you hereby agree that, with respect to any Customer of ours who completely or partially severs his/her relationship with us in favor of you, your Sub-agent, other agent working under your supervision, successors or affiliates, or any person engaging your services (the "Severing Customer"), a presumption shall arise that you or your Sub-agent initiated the contact with the Severing Customer and without further proof from the Company, you shall pay us an amount equal to 100% of the commissions you or your Sub-agent earned (whether accrued or actually received) from us with respect to the Severing Customer during the twenty-four (24) month period immediately preceding the termination of the policy. In the event that such termination is the result of your violation of any of the restrictive covenants set forth in this Agreement, we, within our sole discretion, may choose the foregoing formula as liquidated damages in lieu of any other legal remedies; however, you agree that the foregoing payment of damages does not completely compensate us for all the damages which could or would be generated by such action and shall in no way prohibit the imposition of injunctive or other equitable relief by a court of competent jurisdiction.
If the Company receives information or a formal claim or complaint which, after reasonable investigation by the Company, leads it to believe you, your Sub-agents, employees, or others under your supervision were involved in violations of Trade Secrets, fraud, malfeasance, misappropriation, or wrongful withholding of funds involving activities on our behalf or on behalf of Customers and Prospective Customers, relating to this Agreement or any applicable insurance laws, notwithstanding any other provisions contained in this Agreement, we may withhold any and all commissions you might have acquired under this Agreement until the information or claim is investigated and the matter is resolved to the our satisfaction. Upon investigation of the claim, we shall have the right to terminate all vested commissions to you. In all instances, you shall cooperate with us during any investigation of a claim, dispute, question, grievance, disagreement, inquiry, claim, or in litigation. You will continue to cooperate after this Agreement terminates. Failure to comply could also result in the loss of your vesting rights to commissions or fees of which you may be entitled.
If the Company receives information or a formal claim or complaint which, after reasonable investigation by the Company, leads it to believe you, your Sub-agents, employees, or others under your supervision were involved in violations of Trade Secrets, fraud, malfeasance, misappropriation, or wrongful withholding of funds involving activities on our behalf or on behalf of Customers and Prospective Customers, relating to this Agreement or any applicable insurance laws, notwithstanding any other provisions contained in this Agreement, we may withhold any and all commissions you might have acquired under this Agreement until the information or claim is investigated and the matter is resolved to the our satisfaction. Upon investigation of the claim, we shall have the right to terminate all vested commissions to you. In all instances, you shall cooperate with us during any investigation of a claim, dispute, question, grievance, disagreement, inquiry, claim, or in litigation. You will continue to cooperate after this Agreement terminates. Failure to comply could also result in the loss of your vesting rights to commissions or fees of which you may be entitled.
- 4,872
I'm no lawyer, but it seems to be addressing agents trying to roll business and agents trying to recruit SL agents to a competitor. Are you saying that other FE carriers do not address the same issues? If they don't that seems kinda dumb. Maybe that's because most other carriers have very, very few upper management people with FE sales experience and don't know what they should be looking out for. Maybe that's why a few FE carriers have exited the arena the last few years, and there's more that are facing the exit door. Just an educated guess.
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