Getting Out of my Farmers Contract??

Discussion in 'P&C Insurance Forum' started by Laur818, Dec 10, 2016.

  1. Laur818
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    Laur818 New Member

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    Hey guys,
    I know that somebody JUST posted this... but I signed my contract November 1st and got my first subsidy loan of 2500. I thought I could do it, their sales goals to not have to pay back the loan seemed low enough.... but the second Folio close ends in 6 days already! I only signed one person since then and she is going back to progressive. I have been working my butt off and have nothing to show for it! Should I just get out now while I only have the 2,500 to pay back? I highly doubt I am going to meet the goals, I am not as passionate about insurance as I thought I would be, and as days pass the way I got in irritates me more and more. At first I was under the impression that I was going in for a job, but as it turns out... NO!! they told me things in phases... at first the 2,500 was assumed to be pay as they did not out and out tell me until it came closer to signing the contract that I was opening up an agency. Then the 2,500 was loans but "You will probably not have to pay it back as long as you meet the goals which are super low." Now I'm under the impression that the "goal" is just to keep the loan going and not having anything to do with having to pay it back! The process went very very quickly, and I am still not totally confident in enough of the products to be able to quote as quickly as people expect.

    Also their argument for filing me under a 1099 being an independent contractor is because I own my own business and it is franchising without the fee, but the way I see it is it is not my own business because I do not get to choose who I cover, or how competitive I get to be because that goes through underwriting, I have to answer to them. I do not get to choose Billing decisions because for that I have to answer to billing for. I also do not get to do anything claims related except for file the claim because that goes through claims.... I have to answer to three diff departments instead of having to just answer to a bank if I cannot pay back a loan. I also have to answer to that too if I don't meet the "goals"... Plus the district trainers are trying to get the DM to force us to be in the office everyday, which makes sense as that's where I would be if I did have my own office instead of working out of the district office, but the district office is 25 miles away, If I had my own office, it would be at most 5 miles away.

    Maybe I'm just nervous... I don't know, what do you guys think? Am I just letting nerves get to me? Or was the way I came in totally unfair?:skeptical::skeptical::skeptical::err::err::twitchy::no::no::embarrassed:
     
    Last edited: Dec 10, 2016
  2. dahonored1
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    dahonored1 Expert

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    perhaps you should get out early and take the lost. The worst thing you want to do is to continue with something you don't believe in.
     
  3. indienoise
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    indienoise Guru

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    It's not your own business because you don't get to set rate tables, set underwriting guidelines, control billing, and pay out claims? You dont want to be involved in any of thay, trust me.
    Let them teach you, If they will. If they aren't willing to teach you how to succeed, then yes find another opportunity.
     
  4. insurance1822
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    insurance1822 Guru

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    Wow ... props to your recruiter

    Quit. If you're whining this early on you clearly are weak. Farmers sucks too
     
  5. Laur818
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    Laur818 New Member

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    They were willing, but they also said that it is my business, I own it.... only I don't I pay everything out of pocket and only get a percentage of the profit. The rest goes to the corporation. Obviously any other business I would certainly only get a portion after bills regardless, however I would have 100% of the sales as opposed to 10-30% of all sales.

    Thank you for you input! I will take it into consideration although I have pretty much made up my mind I think to get out of it! Maybe they can find me a position working for an agent or something... Idk!:no::no::no:

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    It's not that I'm weak... Sales just isn't my forte... high pressure sales like that is even worse!
     
  6. todd02
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    todd02 Guru

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    Insurance isn't high pressure sales. It's high pressure marketing. Everyone legally has to have insurance. Making it the easiest sale in the world if you know how to sell it. What state are you in?
     
  7. indienoise
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    indienoise Guru

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    I don't think you have the mindset of a business owner. Not an insult, just an observation. Perhaps they should structure it like a retail business. ..you commit by purchasing the $1mm in inventory you need to commit to, then get your investment back when you've sold it...sure, you get 100% of the gross proceeds, but you've already invested your own money into it.
    Owning a business is not for everyone, no matter the industry.
    Best of luck in whatever you pursue.
     
  8. Laur818
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    Laur818 New Member

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    Thank you for your input, I actually do have a mindset for owning a business, I just had to learn the hard way... be passionate about what your selling. I am not passionate about insurance. I would much rather own a food truck or a restraunt, and sell food or desserts or something yummy! :laugh::laugh::laugh:

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    I am in California.
     
  9. Warrior
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    Warrior Expert

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    I have some questions:
    1. How do I get out of my Farmers Agent Contract and keep my office so I can go independent

    2. My clients will cancel their policies. They hate Farmers, but they want to go with me. How can I get them without breach of contract.

    3. The independent agency is not in my name. Can my farmers clients go to this new independent agency and I won't be in trouble with farmers?
     
  10. indienoise
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    indienoise Guru

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    You notify them in writing that you are leaving...I assume the lease or sees to your office is in your name, not theirs, right? If so, they don't have claim to your physical location.

    I would be extremely careful about this situation. Even if you don't solicit their business, you could find yourself in a legal dispute with farmers. You should consult an attorney.

    Not in your name, meaning the agency is not registered as "John doe agency" like all the captives do, or do you mean your state DOI shows a different person as producer responsible for the agency. This could change the legality of your plight, even if the ethics don't change.
     
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