- 901
Earlier today I was on an Altrua webinar.
The presenter wouldn't talk about commissions. But you have to produce $3000 a month in premium and you're responsible for maintaining at least a 75% loss ratio from your customers or you are terminated for cause.
Terminating an agent's contract "for cause" simply for failing to maintain production requirements would give rise to a mega-million $$ cause of action against the company for, inter alia, defamation, interference with business relationships, etc.
The problem is simple. Once you have a contract termed "for cause," it's akin to being labeled as a sex offender for the rest of your life.
You'd best have a damn good reason to term "for cause," such as fraud, theft, misrepresentation, etc. because a "for cause" termination ALWAYS gives rise to implications of impropriety.
Why do companies get away with this type of egregious conduct? Because agents let them!