I can see that I need to understand what all the initials mean before I can get a grasp of this forum. I feel fortunate to pick the brains of those that are very well versed in the insurance field but I could use your help figuring out what in the world you are talking about. What are IMO, FMO, etc.?
Help !!!! What Are You Talking About?? NNH (Newbie Needs Help)
- Thread starter VaDwayne
- Start date
In my mind a IMO or a FMO is different terminology for the same operation. Someone correct me if I am wrong. Here is one definition:
Independent Marketing Organization (IMO)—an establishment that serves as a distributor of many carrier’s insurance products, and may perform many of the functions traditionally provided by an insurance carrier (recruiting/ licensing of agents, marketing, and sales support). Typically these services are provided to independently contracted agents, in exchange for a percentage of their commission.
Whats the difference between a GA and an MGA? It all depends upon how the particular company is set up. No two are exactly alike hence the confusion. In some companies the GA would serve a similar function to the MGA in another. If a company has both than the MGA is higher up the food chain and has GA's under him. More than likely the MGA is management/administration and not in personal production.
Hence we have:
GA's=General Agents
PPGA=Personal Producing General Agents
MGA=Managing General Agents
BGA-Broker's General Agent
Now are we all totally confused?
</IMG>
Independent Marketing Organization (IMO)—an establishment that serves as a distributor of many carrier’s insurance products, and may perform many of the functions traditionally provided by an insurance carrier (recruiting/ licensing of agents, marketing, and sales support). Typically these services are provided to independently contracted agents, in exchange for a percentage of their commission.
Whats the difference between a GA and an MGA? It all depends upon how the particular company is set up. No two are exactly alike hence the confusion. In some companies the GA would serve a similar function to the MGA in another. If a company has both than the MGA is higher up the food chain and has GA's under him. More than likely the MGA is management/administration and not in personal production.
Hence we have:
GA's=General Agents
PPGA=Personal Producing General Agents
MGA=Managing General Agents
BGA-Broker's General Agent
Now are we all totally confused?
</IMG>
- 924
FMO=IMO
IMO=FMO
The terms are functionally like trying to describe the difference between lawyer and attorney. There is a technical difference, but in the real world lawyer and attorney mean exactly the same thing.
That being said, the FMO/IMO sits in the food chain above the agent who contracts with the FMO. That basically means that an agent in the field has no chance of contracting directly with most insurance companies. So, enter the FMO. The FMO may have a thousand agents and the insurance company would obviously rather deal with an FMO than the thousand agents individually.
But there is more. Any good FMO carries several products from several carriers. The marketing experts at the FMO can guide the agent, especially the new agent who does not have a clue, as to what products to suggest for a particular case. So the FMO provides marketing support. This will frequently be the ability to provide illustrations and other support material.
The FMO makes money from the agent. But typically it is money that the agent would not usually see if the agent could contract directly with the company anyway. In the typical FMO-agent relationship, the agent is going to receive the company's street level commission. This would typically be the case with or without an FMO.
I hope this helps a little. There is a lot more to it, but that is the basic story. The real trick is in picking an FMO, but that is another story and is pretty well covered in these forums.
IMO=FMO
The terms are functionally like trying to describe the difference between lawyer and attorney. There is a technical difference, but in the real world lawyer and attorney mean exactly the same thing.
That being said, the FMO/IMO sits in the food chain above the agent who contracts with the FMO. That basically means that an agent in the field has no chance of contracting directly with most insurance companies. So, enter the FMO. The FMO may have a thousand agents and the insurance company would obviously rather deal with an FMO than the thousand agents individually.
But there is more. Any good FMO carries several products from several carriers. The marketing experts at the FMO can guide the agent, especially the new agent who does not have a clue, as to what products to suggest for a particular case. So the FMO provides marketing support. This will frequently be the ability to provide illustrations and other support material.
The FMO makes money from the agent. But typically it is money that the agent would not usually see if the agent could contract directly with the company anyway. In the typical FMO-agent relationship, the agent is going to receive the company's street level commission. This would typically be the case with or without an FMO.
I hope this helps a little. There is a lot more to it, but that is the basic story. The real trick is in picking an FMO, but that is another story and is pretty well covered in these forums.
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