Is an IMO common practice terminating carrier contracts to keep residual income

[George H Hartzman]

I was informed that two days ago, a telesales IMO/FMO I asked for a release from terminated my contract with a Medicare carrier, leaving themselves retaining the policies I sold and will keep not only the overrides but the renewal commissions as well.

Is this a common practice?

 

[Todd King]

I was informed that two days ago, a telesales IMO/FMO I asked for a release from terminated my contract with a Medicare carrier, leaving themselves retaining the policies I sold and will keep not only the overrides but the renewal commissions as well.

Is this a common practice?

Did you assign your commissions to them?

 

[Travis Price]

Did you assign your commissions to them?

Don't answer this question... Todd is trying to get you to sign up with him so he can term your contract and keep your renewals

JK, for clarity

 

[George H Hartzman]

No I did not assign my commissions.

 

[vic120]

If I understand you correctly you are leaving them and will no longer receive renewals nor commissions

If this is correct

Sounds like you were an employee and assigned over commissions

Did you look over the contract?

 

[Newby]

No I did not assign my commissions.

If you did not assign your commissions then you don’t have anything to worry about. If the insurance company pays you directly they’re gonna keep paying you everything they owe you.

Yes that’s a fairly common practice though but only for agents that have assigned their commissions to the up line and are paid from the up line. That’s the number one reason why some IMOs want you to assign the commissions. So they have complete control over you and anytime they have a problem with you they can take everything you can’t do anything about it.

 

[George H Hartzman]

It was the carrier who told me the termination eliminated my ability to receive the renewals.

The IMO is saying they are going to fix it.

To be determined.

 

[rousemark]

It was the carrier who told me the termination eliminated my ability to receive the renewals.

The IMO is saying they are going to fix it.

To be determined.

What carrier?

 

[Newby]

It was the carrier who told me the termination eliminated my ability to receive the renewals.

The IMO is saying they are going to fix it.

To be determined.

You better make sure you weren’t “termed for cause” then. If they did that to you then that’s a huge problem and it would cut off all commissions coming to you. Generally that is only done when there’s a financial crime or the agent has really done something bad.

if you are termed for cause you need to get an attorney right away. You have to fight it because it will follow you throughout the rest of your career in the insurance business.

 

[axeman462]