Hypothetically... how Would You...

[todd02]

Say you're a captured agent. And another insurance professional approaches you and wants to start up an IA, where you are a partner. You can't have your licenses touch that IA because you're captured. How would you legally be able to invest, own part of or anything having to do with that IA. I can't see a way that you could because of the conflict of interest. The more I research it the more I see captured agents everywhere having a diff family member owning a diff captured agency or one is captured and one is IA.

I'd never risk my Agency over it. But it got me curious on how people get away with it.

 

[Jerard]

Say you're a captured agent. And another insurance professional approaches you and wants to start up an IA, where you are a partner. You can't have your licenses touch that IA because you're captured. How would you legally be able to invest, own part of or anything having to do with that IA. I can't see a way that you could because of the conflict of interest. The more I research it the more I see captured agents everywhere having a diff family member owning a diff captured agency or one is captured and one is IA.

I'd never risk my Agency over it. But it got me curious on how people get away with it.

Captured? Don't you mean captive?

But then, I was captured once. I got away after 11 years.

 

[todd02]

lol, yup… 5th blue moon… I'm feeling captured… yes of course i mean captive.

 

[Schwetty]

as long as you have zero involvement with the day to day running of the IA you might be OK. I have heard of a few captive agents that have done this but not very many. You should have a lawyer review your contract with your captive company to make sure you don't cross any lines.

Some captive companies have a "rule" that you can't refer business to a specific agency, but I would guess that gets violated often.