I need some clarification from real independent agents - Help!

[wildflowerwealth]

Hello All,

I am a newly licensed life, health and annuity agent that I now realize got roped into working for Family First and I'm feeling incredibly uneasy about some things I believe I've been flat out lied to about. Does anyone have any advice on how to go about getting released and being a true independent agent/agency/broker? Please see my concerns and questions below.

When I first started, I was told that any ACA plans I end up selling (by bundling life and health together with various carriers), that I only get paid on the life contract. (I have my own portal with the life company in which I submit the policies, but they are listed as the agent and me the producer.) I started hearing from other agents online who aren't associated with the "company" that I am apparently contracted with, that I most certainly SHOULD be paid on any ACA plans I sell. I was told that our "admin" takes care of all the ACA sign ups via a google form that we as agents fill out and submit to the admin and that it's illegal for an agent to sell both aca plans and private plans (ie not available on the aca portal). I suspect that all of these health plans are being signed under my upline as their sales and I'm left out in the cold...I've also never seen anything that would suggest that it's illegal to sell both aca and "private" plans.

When I went through the company's onboarding process, I noticed that one of the portals I was required to register with was Family First Life. I was explicit with the person who "signed me" that I had no interest in working with either FFL or any type of FMO like that. This person made NO mention of FFL and represented themselves as an entirely independent insurance agency. I explained that while I CAN recruit, I wanted to focus on producing first and then when I learn the ropes and have some success under my belt, I'm more than happy to share with people who want to do the same. I felt pretty uneasy about the whole thing, but the person made a lot of promises that are now being brushed off and twisted into "having to invest in my own business." I was told that my out of state licenses were purchased for me (from what I understand it's a few thousand dollars) and now I'm licensed to sell in those states. I have received those licenses but I'm concerned that I'm now only attached to them through this person. I then did a little digging and realized that the same organization that is now being sued for hundreds of FTC violations is the same company that is associated with the founder of FFL and some of his downlines, I believe it's called Integrity Marketing Group and GPlex Financial. This scares me...it scares me a lot. My guess is that if I'm using leads that this person is purchasing AND requiring individuals on said team to purchase leads with the threat that commission level will be dropped if we fail to do so because again, "invest in your business" or the autodialer we are required to use, or something happens, this person isn't going to hire me an attorney, but instead is going to throw me to the wolves. I worked hard for my license and my reputation and I'm not about to put that at risk. I've also heard on team calls that if the "leaders" see any individuals "spending their money in ways they don't agree with, or don't sign up for a quickbooks account", their commission levels will be dropped as well. I may be new to the insurance field, but last I checked, someone who is claiming not to be anyone's boss can't tell anyone how to spend their money. Giving others information and resources on how to manage their money is one thing, but I don't do well with threats.

My question is, am I able to contract separately under my own LLC with the carriers and just be done with FFL? I never signed a thing with the current agency and I've been told I'm a 1099. Can I register with healthcare.gov and sell through that portal? My guess is that the reason I was told that we don't get paid on ACA is that they aren't being submitted as my sales. Which comes first the chicken or the egg (ie....carriers first, then healthcare.gov or the other way around?) I'm assuming as an independent agent, my commission rate, especially with the life companies won't be as high as what the current company started me at, but I want to protect myself and run my own business in the ways I see fit. I've seen some other people here talk about how the whole "post your sales in a chat group for everyone to see" is a turnoff and I feel the same way. No one needs to know how much I produce, nor is it any of their business. It's all so fake to me and reeks of MLM and smoke and mirrors. I've heard the words "don't worry about it" too many times and when asking questions to make sure I'm following rules of the law or my business, they are met with either the response of "we're still building everything out" or "this isn't my problem" and it's pushed onto someone else. There doesn't seem to be any line of accountability. I've heard nightmare stories of people submitted health insurance plans on behalf of clients and then when those clients come back and say "hey you said I was covered" there seems to be no record or submittals and now the clients are left with medical bills and the agent is left with the responsibility. I'm not even able to track my health sales because once that google form is submitted, it's out of my hands. This all just feels so inauthentic. Maybe I'm old school and the idea of true client/customer service is dead, but my gut is telling me that's not the case.

Also, if I'm able to just contract on my own with multiple companies, would I register with them as an independent agent, a broker or an agency? I've done enough research to feel like I've been sold a lie and it's not a good feeling. People like this are so slimy. Any help or advice would be greatly appreciated

 

[Tahoe Ray]

Speaking only to the life insurance part of your post:

I'm assuming as an independent agent, my commission rate, especially with the life companies won't be as high as what the current company started me at,

It will probably be higher...

Also, if I'm able to just contract on my own with multiple companies, would I register with them as an independent agent, a broker or an agency?

Agent. If you license as an agency, you'll have to dual license (you personally and your entity) in each state. You can certainly do that down the road, I wouldn't do it starting out.

I was told that my out of state licenses were purchased for me (from what I understand it's a few thousand dollars) and now I'm licensed to sell in those states. I have received those licenses but I'm concerned that I'm now only attached to them through this person.

Your licenses aren't "attached" to anyone. You may have an obligation to repay fees depending on your contract, but it's your license(s).

You may be tied to FFL with the carriers though. And they probably won't release you. But, here's the good news, you can terminate your own appointments with each company. Some won't reappoint you for 6 months but who cares, there are dozens of great life companies. On the traditional life side, many carriers even dual appoint (meaning you can have one writing number with one IMO, and a second with a different IMO).

Someone else can answer the health stuff but you can easily be writing life insurance in a week with multiple companies getting paid top agent comp with any number of reputable IMOs.

Good luck.

 

[somarco]

only get paid on the life contract.

That sucks.

SHOULD be paid on any ACA plans

Absolutely!

llegal for an agent to sell both aca plans and private plans

Could be a misunderstanding on your part. I don't write ACA but you can offer other health insurance products. What you are not supposed to do is sell an indemnity health insurance plan that may SEEM like it covers everything but is not a true major medical plan.

while I CAN recruit, I wanted to focus on producing first

This is good advice. You need to LEARN before you can recruit and teach others.

I don't know how long you have been in sales, if you have only sold tangible products this will be a challenge.

It sounds like they have made a significant investment in you and would like to be repaid via your production. Captive agents have a number of restrictions on what they can and cannot do but there is often financial support in the form of leads, draw against commission, nominal salary, training, etc.

There are probably better environments for you but I really can't offer suggestions since my focus is Medicare only and I don't care to get involved in other lines.

I started out as a captive life agent a number of years ago with hands on training and a commission advance but not much else. The only leads were orphans and those leads were few.

I could pay for direct mail information with a return inquiry card. I could also cold call door to door or call from the phone book. I hated every minute.

Eventually I landed a position in a group health insurance agency. They paid me a nominal salary and was given a few house accounts to service but was also expected to generate my own leads.

You definitely need some direction but I am not the one who can help you if you want to sell multiple lines by phone in multiple states.

 

[wildflowerwealth]

Thank you both! I am not captive - they were very specific about that. I can leave at any time and I never signed anything. The only thing I think I would need to do at this point is contact FFL and have them remove me from their portal.

They invested about $4k into me, but seeing as I've already brought in nearly triple that in sales and I'm not being paid on the ACA's at all because they weren't submitted by me or even with my name on them and instead under my upline's name, they are making well beyond that monthly. Not to mention the overrides from the life sales I've made which is separate from the health commissions I'm not seeing.

Yes I've sold intangible and tangible products for many many years and know customer service incredibly well. I take care of my clients no matter how much the commission is. I know people and I know communication. Clarity, honesty and kindness goes much further in the long run and builds solid foundations. I am not a bait and switch or snatch and grab type of person not only because it's dishonest but in the end, it comes back to me. Not an upline, not the state, not the insurance company and I have a responsibility to ensure that I protect myself and my clients...in any field.

@Tahoe Ray - do you mind if I reach out to you directly? Your response about getting up and running in a week's time gave me so much hope and I appreciate both responses greatly.

 

[DHK]

Thank you both! I am not captive - they were very specific about that. I can leave at any time and I never signed anything. The only thing I think I would need to do at this point is contact FFL and have them remove me from their portal.

Let me clarify that what most people call 'captive' isn't necessarily what most IMOs say captive is.

MLM IMOs use the term 'captive' to imply that you're limited to writing ONE insurance company, such as New York Life, Northwestern Mutual, etc.

Captive really means that you cannot write business outside of your organization. Think about it: if you write business outside of FFL, they cannot collect on the overrides they need to pay the upline.

Double-check.

The way you leave each insurance company you've signed selling contracts through FFL... is to not write business for 6 months and then sign new selling contracts with another organization. 6 months is the standard without asking for a release sooner.

 

[WinoBlues]

Thank you both! I am not captive - they were very specific about that. I can leave at any time and I never signed anything. The only thing I think I would need to do at this point is contact FFL and have them remove me from their portal.

Like most of us when we were new - You simply do not know what you do not know.

OK, semi captive.

I wish this forum had existed when I started. It would have saved me a lot of tuition.

Captive really means that you cannot write business outside of your organization. Think about it: if you write business outside of FFL, they cannot collect on the overrides they need to pay the upline.

This.

 

[wildflowerwealth]

So I'm screwed basically? I just don't feel that how they are doing business is ethically right in any way shape or form, and when the FTC starts really cracking down on stuff in the next few months, there are going to be a lot of kids strapped with blame that they weren't even aware of. Not only that, but I feel like they are literally stealing from agents with the ACA stuff. It's all smoke and mirrors not to mention I don't lie to my clients. It's not just about the sale - we're talking about people's lives here.

 

[WinoBlues]

So I'm screwed basically?

Not at all. Reread these other guys replys again.

Also captive or 'semi captive' aren't necessarily a bad thing. It depends on if the agency is a good fit for you.

I started out captive and it was the right place for me. Until it wasn't. Then I went independent.

Ps... you have to still be in business to take care of your clients. So it has to be you first.

 

[wildflowerwealth]

Would you mind if I private messaged you on here @WinoBlues?

 

[WinoBlues]

Would you mind if I private messaged you on here @WinoBlues?

Sure.

However, sitting outside a coffee shop on the Pacific Coast at the moment. So going to be short answers. Also, I do not do 'Adult Daycare' recruit so my perspective is strictly as an independent agent. The agency guys here can help you better from that perspective.