How would you interpret this contract provision?

[rousemark]

Sounds like lazy attorneys that just copied one contract to another.

If you look at the contract, it looks like something that was put together in the 70s.

 

[goillini52]

They have a captive side and I can see that language but this is on their brokerage site.

Saturday Night Live.

 

[WinoBlues]

So, you get a call from an existing client to increase. You put them with a different company with a lower cost level plan. The company can terminate you with cause? Maybe forfeit renewals?


On naming the company - we ask people to name agencies with questionable practices all the time. To protect other agents.

 

[rousemark]

So, you get a call from an existing client to increase. You put them with a different company with a lower cost level plan. The company can terminate you with cause? Maybe forfeit renewals?

A penalty that applies specifically to this section Is (iii) two (2) years of annual premium for all policies sold in violation of Sections 39 or 40 of this Agreement;

 

[goillini52]

A penalty that applies specifically to this section Is (iii) two (2) years of annual premium for all policies sold in violation of Sections 39 or 40 of this Agreement;

Damn, that would be a big negative about contracting with SNL. Do they take DE?

 

[rousemark]

But it can become uncompetitive for at least three reasons:

1) Competitors products may be better suited for a variety of reasons - pricing, added benefits, underwriting being just three.
2) Current carrier may become uncompetitive due to interest/dividend or expense changes.
3) Current carrier may become a financial risk that client is better served leaving behind. In today's interest rate environment I am paying much closer attention to insurers financial situation (and not just ratings, because as we saw in the late 2000s, the rating agencies are not out front on carrier financial conditions. hell, AIG was A++ when they were bankrupt!)

The insurance entities of AIG were never bankrupt.

 

[Allen Trent]

The insurance entities of AIG were never bankrupt.

I believe without the government bailout, they were indeed on a fast track to bankruptcy & thus the reason for the bailout.

 

[Tahoe Ray]

I believe without the government bailout, they were indeed on a fast track to bankruptcy & thus the reason for the bailout.

The subsidiaries (American General/SunAmerica/etc.) were not at risk as far as I know and that is what always mattered to me.

 

[rousemark]

I believe without the government bailout, they were indeed on a fast track to bankruptcy & thus the reason for the bailout.

Yes, but the insurance subsidiaries were solvent. Their reserves and assists were protected from AIG.. AGLA was never in danger of default in any way.

 

[rousemark]

Damn, that would be a big negative about contracting with SNL. Do they take DE?

Yes