Held Hostage By Upline Forever?

[Northeast Agent]

About four years ago, when I had been in the business for less than a year, I contracted to sell STM with a broker but never did anything with it. I didn't know about releases then. He posts on here occasionally and I now have him on ignore.

I would receive emails regarding webinars from the FMO he was with, but never a peep from him. Last summer I suddenly became appointed to sell Med Supps through the STM carrier. I had totally forgotten I was even appointed with them as I kept getting letters in the mail stating I was terminated due to non-production. Thinking my identity was stolen, I called the carrier, who said the FMO had appointed me (I didn't realize they could do this without asking agents).

Now I want to sell Under 65 group health with the STM carrier and I also need their STM product as well with a different IMO. They are two separate contracts. I was appointed immediately with the group product, but was told I needed a release for the STM and Under 65 ancillaries. I was shocked, as it had been years and I never wrote business.

So I called the broker's FMO, who said I needed a release from him. I emailed him and he wanted to know who I wanted to be released to and why? Then he came back with I would be better off staying with his company due to higher compensation, they are one of the carrier's top channel's, etc.

I just want a release - should I go back to his FMO and complain, or maybe to the carrier? I've never heard of someone not releasing you after you've not done business with them after years like this.

 

[Todd King]

Keep trying to get the release from the immediate upline. Tell him who you are going with if he really wants to know and tell him why. Once you answer his questions he has nothing left to say, even though I'm sure he will still try to talk you into staying.

If he won't give you a release, then come back on here and let us know who he is so that no other agents will fall into that trap.

 

[Northeast Agent]

Oh, I did tell him who I was going with. He then asked if I had been successful at selling insurance and I said Medicare.

I emailed him on Monday for an update on my release and he's gone silent.

 

[shonceman]

That's bizarre. I've been under the impression that if you don't write with a company for 6 months, you don't need a release. But maybe that's just true for FE companies. I don't really sell much Medical.

 

[Northeast Agent]

It seems like if you have an upline between you and the FMO, they can hold you hostage if there's not a reciprocal release in place.

I wish when you're doing the pre-licensing classes, we would be warned about all of this. In my case I think it's crazy. I never wrote a single policy with this guy years ago and he's being difficult?

If someone doesn't want to do business with you and it's been over six months, move on.

 

[Todd King]

That's bizarre. I've been under the impression that if you don't write with a company for 6 months, you don't need a release. But maybe that's just true for FE companies. I don't really sell much Medical.

There are a few companies that want you to get a release no matter how long it has been.

 

[goillini52]

It seems like if you have an upline between you and the FMO, they can hold you hostage if there's not a reciprocal release in place.

I wish when you're doing the pre-licensing classes, we would be warned about all of this. In my case I think it's crazy. I never wrote a single policy with this guy years ago and he's being difficult?

If someone doesn't want to do business with you and it's been over six months, move on.

Tell us who he is, and we'll get to work on the scoundrel!!!

It's not Todd, is it?

 

[goillini52]

There are a few companies that want you to get a release no matter how long it has been.

And some want you to cancel your contract and wait 6 months to recontract.

 

[pfg1]

I just don't understand that thought process. If someone wants to go just let em go.
Since you haven't done anything with them in forever, he's really go no right. And I'm not sure about the appointing you without consent. Unless something you signed way back that you don't know about gave them that right.

I do agree, the contracting/appointing process should be at least reviewed in the licensing. So many have dealt with this because they didn't know.

The other issue... there are some seriously devious folks out there in this business (on the IMO/FMO side) that are self serving that will lie right to your face up front to get you on board. Thankfully most of the folks I've dealt with over the years have been above board, but I know some folks that haven't been as lucky.

 

[Northeast Agent]

Tell us who he is, and we'll get to work on the scoundrel!!!

It's not Todd, is it?

Haha, no he's not a regular here, although he does post occasionally. If I don't hear from him by tomorrow, I'm going to try his FMO again, then the carrier to complain.