Getting Terminated and Your Residuals You Currently Are Receiving

[MN Guy]

Hello All

I have a question in regards to getting terminated and the agency keeping all of your residuals.

I was notified a couple days ago that I was being terminated becasue of my lack of production, and my last residual check I will get for this month, then I won't be getting any more.

To give you a little more background so you can give me your opinions. I was hired by a independant agency. Before I got my P & C license I was doing 100% final expense life insurance the last year for the agency. The people at the office mentioned I should get my P & C license so you could cross sale into my life book of business, which made total sense to me.

So I went in got my P & C license and they helped me with my first 3 or so sales and the rest I did on my own. It's not like I have A huge book of business as I pobably only have 25K worth of Anual Premium, however my yearly commission on this is probably around 3K a year, "which is not much" I know, but just the thought of them keeping "everything" moving forward, just doesn't sit well with me, and some of these clients are my personel friends and also some of my neighbors as well.

Like I said 95% of my business or was-was with life insurance, as I still make around 20K in commission this year with the same agency so they are still benifitting financially from my life sales.

Being I was pretty much the ginnny pig with this agency for being the first P & C rep working under this agency, I never received or signed a contract to protect the Agency as well as for myself.

So my question for all of you out there is am I out of line for feeling I'm getting mistreated here or is this welcome to business? I would of thought they would of at least offered to buy out my very small book of business I had with them.

Looking forward to reading your responses.

Thanks

Mont.

 

[todd02]

You don't own the policies, you're never entitled to anything from them beyond your employment agreement. You got fired. You get nothing. No agent in his right mind would guarantee renewals after termination.

 

[LGilmore]

welcome to the industry....

About the only thing they can't mess with is your securities sales, provided you move to another BD.

Everything else, pretty much yea it's theirs.

 

[VolAgent]

Personal lines policies for friends and family are probably the easiest thing in the world to move. Unless you have a contract preventing you from doing it, that is going to be the easiest book roll in history, particularly only 25,000 in annual premium's worth.

Assuming you are not contractually prohibited, if you can't roll away the business, perhaps insurance isn't for you. Even then, if the book is mostly friends and family, it will evaporate from their book in the next few renewals.

So the long and short of it is, they aren't going to have that revenue very long.

 

[MN Guy]

Thanks for all your opinions, after speaking with them more they are going to allow me to transfer my small book to another agency, so that's nice, however for my life my personal friend that is my down line, they said will take my spot, as I can't take him. The funny thing is, he makes about the same as I did in life.

I don't really care for that as I've know him for over 8 years, but I don't feel I should give him a altamatium that he must move with me, as I don't think that would be fair to him.

Thanks for all your replies

Mont.

 

[Newby]

Thanks for all your opinions, after speaking with them more they are going to allow me to transfer my small book to another agency, so that's nice, however for my life my personal friend that is my down line, they said will take my spot, as I can't take him. The funny thing is, he makes about the same as I did in life. I don't really care for that as I've know him for over 8 years, but I don't feel I should give him a altamatium that he must move with me, as I don't think that would be fair to him. Thanks for all your replies Mont.

We're your FE commissions paid to you by the insurance companies? If so you will still get the renewals. If you assigned them to the agency you will not.

 

[MN Guy]

For the P & C, my checks came directly from the agency. On the Life Side, my checks come directly from the life company, this also includes all overrides on the agents I have under me as well as the one agent they say that they are going to move into my spot.

Mont.

 

[Newby]

For the P & C, my checks came directly from the agency. On the Life Side, my checks come directly from the life company, this also includes all overrides on the agents I have under me as well as the one agent they say that they are going to move into my spot. Mont.

If they paid you directly the renewals should still keep going to you.