large scale replacements of your own clients-

[SpruceBruce]

BTW, read your contract regarding "trade secrets". Your client list would be classified under that provision. Terminate your contract (and retain that information) and start replacing all of those policies, and THAT would be why you would be sued.

It would be a business dispute, not a suitability issue.

DHK-
Thanks for your comments. I have never been one to replace any business let alone my own ironically. My contracts have no provision for trade secrets, only confidentiality. I will have a contract lawyer read through my contracts and hone in on the confidentially area. Both of the agent agreements are quite loose, not as restrictive as others I have signed, including the confidentially part. The client's really are jointly owned clients. We both own them. Its no different than an orthopedic Dr. installing a certain brace or joint replacement for a patient. The medical device company and the Dr. are joint owners of the patients/clients with that brace or replacement joint. The claim that most carriers (who do not supply agents their leads) are the owners of clients and client list is weak at best. Most of us spend our own money, and considerable time to prospect, then as independent agents we choose which carrier to place them with among a variety of carriers. Being a captive agent is a somewhat different story .

 

[DHK]

The claim that most carriers (who do not supply agents their leads) are the owners of clients and client list is weak at best. Most of us spend our own money, and considerable time to prospect, then as independent agents we choose which carrier to place them with among a variety of carriers.

This is in my ANICO independent GA contract:

Trade Secrets – All accounts, policyholder files and records (including any names, addresses, and ages of policyholders or records of policy expiration or renewal date), application forms, rate books, software, and all other records in your possession pertaining to the Company business are trade secrets wholly owned by the Company and shall be returned to the company upon demand.

I'm not an attorney. In my opinion, this is the company's defense to deter agents from considering what you're considering - replacing their ENTIRE business because you decided to "cut ties".

You've got to develop the skill of "reading between the lines" and the reasons why behind contract provisions.

 

[SpruceBruce]

This is in my ANICO contract:


I'm not an attorney. In my opinion, this is the company's defense to deter agents from considering what you're considering - replacing their ENTIRE business because you decided to "cut ties".

You've got to develop the skill of "reading between the lines" and the reasons why behind contract provisions.

That ANICO contract is intentionally very restrictive. The contracts I'm referencing are not anything like that at all. That makes you want to stay away from Anico, heh>?
They want to own you, no cool...

 

[Newby]

I like your comment. I will create a contestable period disclosure form for the client to sign at time of application and give them one copy and keep a copy for their file. That should take care of that issue. Thanks for the replys...

Seems like the form you are describing already exists. It’s called a replacement form.

Why wouldn’t you just prospect for new business? Agents that flip their book do not last long in this business.

 

[DHK]

No... they want to take reasonable measures to preserve the business I sell.

However, it's your license, your career, and your money. You can't say that you haven't been advised not to do this on a "large scale".

 

[SpruceBruce]

No... they want to take reasonable measures to preserve the business I sell.

However, it's your license, your career, and your money. You can't say that you haven't been advised not to do this on a "large scale".

To me large scale means more like 50%, not 100%.

 

[DHK]

It doesn't matter what YOU think it is (or I for that matter). All that matters is what the COMPANY and THEIR ATTORNEYS thinks it is.

 

[DHK]

Btw, have you THOUGHT about how you'd be DESTROYING your client's TRUST in you when you come back to replace the business you originally sold them??

Sometimes agents are their own worst enemies and they bring down the profession with them.

Maybe you should just create your client list and SELL it to another agent to contact them and sell them, rather than you doing it yourself. Company can't have any issues with that because you're not replacing your own business. The new agent can get some hot leads and you can get a piece of the action that way.

 

[SpruceBruce]

Btw, have you THOUGHT about how you'd be DESTROYING your client's TRUST in you when you come back to replace the business you originally sold them??

Sometimes agents are their own worst enemies and they bring down the profession with them.

Maybe you should just create your client list and SELL it to another agent to contact them and sell them, rather than you doing it yourself. Company can't have any issues with that because you're not replacing your own business. The new agent can get some hot leads and you can get a piece of the action that way.

That IS a violation of the contract confidentiality agreement. A really dumb idea....

 

[DHK]

Oh the irony.

What do you think of www.successionlink.com and other places that let you sell your business??