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I just recently hired an individual to help work our book of business on the P/C side. In doing this I quickly found that I can not get direct contracts with P/C carriers; because I have not been in the P/C business long enough, I personally concentrate on the commercial side. To make a long story very short, I had my new hire contract with a local agency, and worked out an agreement.
So for the last two weeks my new hire has been putting information into his contact manager software so that the new guy could send out a form letter to all of my existing clients telling them my firm would now be offering a new line, and the he, the newbie, would be following up with them shortly.
Yesterday after receiving the contract information from Safeco in particularly, and after receiving phone calls from some of clients stating that the agency owner has been contacting my clients; I noticed that the comp was not what we had agreed upon. The agency owner got upset when I confronted him, and he told me that he was going to cancel my new agents contract. The problem here is that the agency owner stated that he was terminating it for cause. So with all of that being said I have two q1question:
If an agents has been terminated for cause and has not even written any business, will that effect his future appointments with another carrier?
What constitutes a termination for cause on the P/C side? I have looked at the local department of insurance and can not get a clear definition. I thank you in advance for your help.
So for the last two weeks my new hire has been putting information into his contact manager software so that the new guy could send out a form letter to all of my existing clients telling them my firm would now be offering a new line, and the he, the newbie, would be following up with them shortly.
Yesterday after receiving the contract information from Safeco in particularly, and after receiving phone calls from some of clients stating that the agency owner has been contacting my clients; I noticed that the comp was not what we had agreed upon. The agency owner got upset when I confronted him, and he told me that he was going to cancel my new agents contract. The problem here is that the agency owner stated that he was terminating it for cause. So with all of that being said I have two q1question:
If an agents has been terminated for cause and has not even written any business, will that effect his future appointments with another carrier?
What constitutes a termination for cause on the P/C side? I have looked at the local department of insurance and can not get a clear definition. I thank you in advance for your help.