IMO/FMO Vs. Direct Appointment W/Insurance Company?

Nov 15, 2016

  1. InsuranceQs
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    InsuranceQs New Member

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    I'm looking to go independent and I'm confused about IMOs/FMOs vs. directly appointing with insurance companies.

    My goals:

    1. completely own and control my book of business
    2. access to training, latest knowledge, sales assistance, etc.
    3. non-captive, able to sell products from various insurance companies
    4. mainly annuity sales (FIAs and fixed)

    My questions:

    1. What are the advantages/disadvantages of appointing with insurance companies via IMOs/FMOs vs. being directly appointed?
    2. If I appoint with "insurance company" via an IMO/FMO (as opposed to directly) am I giving anything up?
    3. Difference between IMO and FMO?

    Please let me know if clarification is needed. Thanks for your help - very much appreciated!
     
  2. goillini52
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    goillini52 MAGA...Eat More Bacon & BUILD THAT WALL!!!

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    http://www.insurance-forums.net/for...ough-field-marketing-organization-t75059.html

    I don't think there's a difference between an IMO and a FMO. A FMO might be larger. Then you've got NMO's, they're the biggest.

    For Annuities, you should contact Tahoe Ray on the Forum.
    http://www.insurance-forums.net/forum/user/tahoe-ray-36169/
     
  3. Todd King
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    Todd King IMO/FMO Owner

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    IMO = Independent Marketing Organization. Usually referred to as an IMO when it's on the life side.

    FMO = Field Marketing Organization. Usually referred to as an FMO when it's on the health side.

    Other than that they are exactly the same!

    You shouldn't be giving up anything if you go with an IMO/FMO. Many times the IMO/FMO can get you a better contract as opposed to going direct to the company. The IMO/FMO might also provide better support for you too.
     
  4. syntaxninja
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    syntaxninja New Member

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    I actually worked for an IMO and Todd is correct in his definitions of IMO vs FMO. They are virtually identical and some organizations will use the term interchangeably.

    FMO/IMOs can get you a better contract or it could be worse. I would advise you to find out what street level commission is on a particular product/carrier. IMOs typically have a little wiggle room and will only give agents as much as the agent asks for or what the agent knows is available.

    The IMO I worked for always tried to find out where an agent/advisor was currently so they could just match that or give them less and widen their spread.

    Some might argue that there are some benefits of working with the right IMO such as training and back office support. Not to mention the access to the carriers and products you are looking for. I would just make sure you like who holds your contracts and that they provide some value to you. Because at the end of the day, the IMO is getting an override on all the business you produce. They should definitely earn it in my opinion!
     
    Last edited: Nov 16, 2016
  5. InsuranceQs
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    InsuranceQs New Member

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    Excellent, thanks for the clarification!
     
  6. goillini52
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    goillini52 MAGA...Eat More Bacon & BUILD THAT WALL!!!

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    So, which do you go by Todd? Are you a FIMO or an IFMO?
     
  7. Todd King
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    Todd King IMO/FMO Owner

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    Well, never thought of it like that. I've always thought we were and IMO/FMO or FMO/IMO, but never combined them. I think FIMO would be easier to refer to than IFMO. IFMO just sounds too "iffy".
     
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