Independent Agent vs Captive Agent

Jul 1, 2019

  1. Whitney S
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    Whitney S New Member

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    If my contract said that I am an independent agent can I sell Life insurance for different companies?
     
  2. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    Not enough information.

    Let's assume that you're with New York Life or Northwestern Mutual. You *may* be allowed to sell for other companies... after they have "first right of refusal".

    Let's assume that you're with MassMutual or Guardian. They are considered "semi-captive". You can sell for outside companies... but I would recommend that you put your outside business with their brokerage firm for some production credit.

    If you're with an MLM company that says "you're non-captive"... they often use that term loosely. What they mean is that you don't have to sell for just one company... but you probably should only sell the companies that THEY have access to.

    If you're with a true IMO that YOU chose, you can have various insurance selling contracts with various companies through various IMOs (insurance marketing organization). The same applies if you're contracted directly to a company. You can contract with other companies either directly or through other IMOs.
     
    DHK, Jul 1, 2019
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  3. Whitney S
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    Whitney S New Member

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    Okay, this is my situation. I informed my Supervisor that I want to work with another company because I like one of their products. I currently work with Liberty National Life and I want to work with Aflac as well. She told me that Liberty National is a captive agency. I read over my contract I don't see the work captive.

    At the very beginning of my contract this is the first page


    I understand that representing the Company through the Exclusive Agency Division, I will have no other appointments outside of the Torchmark affiliate companies, unless explicitly authorized by Company. As a business courtesy, I am allowed up to 45 days after my initial appointment to cancel any appointments with other companies. If the appointments are not terminated within 45 days, my appointment to represent the Company will be terminated.


    Is this the same as being a captive agent?
     
  4. MosesNewmanNAAIP
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    MosesNewmanNAAIP Guru

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    I would definitely go independent. N.A.A.I.P. will train you and you will taught to particularly pay attention to commission levels. There are lots of "shysters" in this business.
     
  5. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    If you have a supervisor, you are not an independent agent.

    Now, that may not mean that you're 100% captive, but in some circumstances, you have to *earn* the right to represent additional companies.

    If you want to stay at Liberty Life, I'd follow what your supervisor is telling you, otherwise, you could be terminated "for cause"... and that cause would be engaging in a business activity with a conflict of interest.
     
    DHK, Jul 1, 2019
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  6. Robert Barney
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    Robert Barney Guru

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    Yes it is. What companies make up: Torchmark affiliate companies?
     
  7. MosesNewmanNAAIP
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    MosesNewmanNAAIP Guru

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    That would be
    That would be United American and their NY sister company called Globe Life.
     
  8. Robert Barney
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    Robert Barney Guru

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    David R.utstein wrote:

    First, N.AAIP is not an entity, it can't train a poodle.

    Second, N.AAIP is run by a guy named David R.utstein. Should he uses a last name it will be David Gordon which is NOT his real name. His real last name R.utstein is a banned word on this site, just like N.AAIP.

    You can read more about David by clicking on this google search and visiting the first site in the results:

    david n.aaip - Google Search

    After you read that site (his davidr.utstein.com), do you really want him to train you?
     
  9. Robert Barney
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    Robert Barney Guru

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    David, I wasn't going to reply to the earlier post, until you did this:

    That would be

    Robert Barney said:

    Yes it is. What companies make up: Torchmark affiliate companies?

    That would be United American and their NY sister company called Globe Life.

    MosesNewmanNAAIP, 9 minutes ago​
     
  10. David Block
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    David Block Expert

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    From the quick read of what you posted, it appears you are captive in that you are only allowed to sell within the companies within the same umbrella. If what you are selling does not resonate with you, then it is time to consider moving on your own as a true independent and finding an agency through whom to work. Or, consider establishing your own agency and generating your own contracts.

    There are quite a few questions you need to ask yourself. First, how are you going to generate leads (assuming your firm currently supplies them). Next, how many carriers are you interested in representing; do you want to be a true independent/broker? Third, how will you survive financially until you build your business. And last, but by no means least, who will help to process and follow-up on your business.

    The grass always looks greener on the other side of the street but the reality is, it is just like yours; it needs to be watered, watched, and mowed.
     
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