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You are..."Captive" - To all others - beware of those contracts.
Independent Agent vs Captive Agent
- Thread starter Whitney S
- Start date
- 30,581
Liberty National(who created Torchmark), Globe Life, United American, AIL, Family Heritage Life, American Life and Accident...
Torchmark Corporation Brands | Affiliates | TMK
- 11,513
No, you won't qualify for unemployment for a commission-based position - captive or independent. However, this isn't legal advice, but that's been my experience.
You could be terminated "for cause" for breach of your contract. These terminations have to be disclosed every time you apply to represent a company. The only terminations that are acceptable without much or any disclosure are for non-production.
You could be terminated "for cause" for breach of your contract. These terminations have to be disclosed every time you apply to represent a company. The only terminations that are acceptable without much or any disclosure are for non-production.
- 2,301
If you are captive and get caught selling for a carrier outside of your scope of appointments you could be fired for cause but would certainly be told to cancel the appointment. There is a get around if you set yourself up as a broker, take on your own E&O, and get appointments through a group. The question then becomes why would you chance it? I had appointments for Med Supps through NISHD which did not appear on any NIPR site or my state's listing. I wrote some med supps and pivoted to the P&C business in the home a few times but there was no way I could take a phone call while with the captive. It just wasn't worth the chance of losing my job. Be careful in whatever choice you make
So I'm doing it with a group as you say so my captive company wouldn't see it then? Also, will that mean I get a black mark on my license for future appointments? Could I qualify for unemployment?
- 11,513
Depends on each company's appointment paperwork. I believe it often asks if you have EVER been terminated for cause? And it's up to you to disclose.
How would they find out? Don't know and I don't care. My job is to answer company appointment paperwork truthfully and thoroughly. Just by asking that question implies that you might want to withhold material information from the companies you want to represent?
Are you sure you want to be in the promises, protection, and guarantees business that requires Ethics CE?
How would they find out? Don't know and I don't care. My job is to answer company appointment paperwork truthfully and thoroughly. Just by asking that question implies that you might want to withhold material information from the companies you want to represent?
Are you sure you want to be in the promises, protection, and guarantees business that requires Ethics CE?
- 2,301
You have not disclosed who you are captive with and the employment term of that appointment. During a full background check there is a good chance that everything you have done will show up somewhere. For the sake of argument, let's say that nothing shows up and you are working in an office for the captive agency. You are out of the office one day and a customer from your independent side walks in looking for you and spills the beans. You will be fired and there will be no unemployment. It is not worth it if you can't bring them on as a customer of the captive company. i was able to explain to my captive company that I did have some outside appointments which I used to generate business for the captive and they bought it. Keeping two piles of balls juggling in the air just got too hard to maintain. You could inadvertently drop a business card in the wrong place, have an E&O situation that gets back to the captive, a few other mistakes I can think of. Your profile says California and I don't know what the agent look-up looks like in your state but you may not be able to hide your appointments
I see, the truth is I plan on quitting this captive agency since it is dying. I just want to start with the independent agency group so that all my contracting is done and I have a few sales under my belt. I'm doing telesales, very unlikely they will walk in when the place is closed. I'm at a 0% commission rate right now so this company I work for is ridiculous right now and I need out.
