Let's talk releases!

[Joe Moore]

For the most part I do not get the constant uproar over releases. I have only had one company cause me release problems and that is Parker and Associates.

Why would an IMO/FMO want an agent that is unhappy? I can understand not releasing an agent for a Debit Balance or the future risk of a Debit Balance. That is hardly ever discussed here other than by the folks representing IMO's. But if that risk is assumed by the new IMO (highly unlikely) then there is no reason financially not to release an agent. The problem of course is, no IMO is going to take an average agent on or his potential to incur a Debit balance with an insurance company, especially when the IMO did not share in the profits or the original commissions. That opens up a can of worms for the IMO and the agent. Chargebacks in general can be mede against the agent for as much as a year and of course depends on holdbacks, whether full commission is paid, ect.

How do you folks that think an agent should be able to get a release whenever he wants think the Debit Balance issue should be addressed to protect the IMO? That is or should be the only real issue with an honest IMO that keeps them from releasing an agent.

On any policy, in most states the contestibility period, the chargeback can be for 2 years after the policy was written. In case of fraud, or "material misrepresentation"

Joe Moore [email protected]
National Senior Benefits
Asurco Insurance Marketing
www.asurco.com
PO Box 1954
Morristown, TN 37816
1-800-226-1004
1-423-581-1004

 

[moonlightandmargaritas]

Joe, I'm no Rhodes Scholar, but I do know if you've got expenses of $200,000 against revenue of $222,000, you need either:

a) more revenue
b) tighter expense control
c) both
d) lock the doors

 

[Joe Moore]

Joe:

See, even if others don't call you dishonest, you're not making friends.

As my mother used to say, "straighten up and fly right." You need to earn our business, and so far, you've only proven you are not the kind of MO anyone here wants to work with.

By the way, did I ever mention that the way you do business is perhaps slightly south of honest?

Rick

Glad you are in California and not close to TN. I am licensed in CA, but we do not have any agents there. It is hard to respect someone who constantly declares you "dishonest" because of a difference of opinion. I will tell you how I feel, but will not call you dishonest, because you do not agree with me. This has nothing to do with your honesty.

This is why I asked for a civil discussion. I respect people that do not agree me. But do not respect people that call me dishonest because I do not agree with them.

I am not looking for friends. I am trying to give the side of this discussion from the IMO perspective.

Joe Moore [email protected]
National Senior Benefits
Asurco Senior Benefits
www.asurco.com
PO Box 1954
Morristown, TN 37816
1-800-226-1004
1-423-581-1004

 

[Winter_123]

Glad you are in California and not close to TN. I am licensed in CA, but we do not have any agents there.

You don't have any but are here to recruit some.

Winter

 

[patch36]

I'm not finding why anyone would call him dishonest? I understand a certain amount of hesitancy and suspicion of an IMO posting here and inviting our 'feedback', but dishonest?

Point it out to me so I do.

How does an IMO protect themselves against chargebacks ?

 

[xrac]

Joe, I'm no Rhodes Scholar, but I do know if you've got expenses of $200,000 against revenue of $222,000, you need either:

a) more revenue
b) tighter expense control
c) both
d) lock the doors

I would assume that expenses here also include salaries. If that is the case a 10% return ain't bad depending upon what is taken out by Joe and his son as compensation.

 

[GreenSky]

I'm not finding why anyone would call him dishonest? I understand a certain amount of hesitancy and suspicion of an IMO posting here and inviting our 'feedback', but dishonest?

Point it out to me so I do.

How does an IMO protect themselves against chargebacks ?

The dishonest part is that agents do not know that they cannot leave him at will. Never said he was a bad guy, just dishonest in the way the business is run.

There are many MOs that fit in the same category. I prefer to deal with people that respect me as an independent agent. I work primarily with one FMO and never question the contract. He has given me a letter guranteeing my release but I have no reason to exercise this.

Rick

 

[Todd King]

I'm not finding why anyone would call him dishonest? I understand a certain amount of hesitancy and suspicion of an IMO posting here and inviting our 'feedback', but dishonest?

Point it out to me so I do.

How does an IMO protect themselves against chargebacks ?

Ok, you want dishonest? Joe, do you tell the agents you're hiring that you don't grant unconditional releases? Are they aware of anything like that? Do you get them to sign something stating you don't give releases? I thought not!
You know, you don't actually have to lie about something to be dishonest...withholding information that is pertenent is dishonest too.

Patch, to answer part of your question earlier, when an IMO grants you a release, they have the right to ask you to pay the money you've been advanced. After that they are not in jeapardy of losing anything. I've done it as I'm sure others on this board have. Since the IMO's are on the hook for your debit should you roll any business etc, they should have the right to ask you to do that.

 

[Frank Stastny]

Let's break it down to it's simplest form.

MO's recruit agents because insurance companies no longer want to. It's work and they should be compensated by the insurance companies for doing so. They incur expenses but I should not have to pay those expenses.

Forget "support and training" because it is non-existent Anyone who says different is full of crap, just read the threads on this board.

Insurance agents sell policies for the company and the company compensates them. Agents have expenses also.

When I sell a policy there is nothing that says that my new client must keep the policy I sell for a specified period of time or that the client can't take another policy for 6 months after they cancel mine. They can cancel it a month later and there goes my investment in time and money to sell that policy.

However, if I sell them the right policy at a fair premium and provide excellent service they will not be as inclined to cancel. My clients want to stay with me, I don't need a "hammer" to hang over their head. But then, I don't treat them like crap and lie to them either.

Why is the time and investment I have in selling a policy any different that the time they claim to put into recruiting an agent? (See note about "support and training" above.)

They talk to an agent maybe a couple of times on the phone for a total of maybe 30 minutes or so, blow a whole lot of smoke up his ass, fax him a contract and go on to get the next agent. That is the last time we hear from them.

I have a hell of lot more time and money invested in selling a Med Supp policy than that. Plus, I DO provide real support to that client for the entire time they have the policy.

It's simple, their argument about not giving releases comes from a position of greed. I think that is very evident in this post.

The good ones who do provide releases and treat agents fairly do not need that "hammer" to hold over agents heads. Agents willing sign with them and stay with them. They are willing to work to continue to earn the agents business.

There's that dirty four letter word again.

 

[MedSuppPro]

It is only a matter of time. FMO's who fail to release will need to explain to the IRS their definition of Independent Contractor. The IRS will make charge backs look better then back taxes!

Joe, I did the MO gig 18 years ago. I would much prefer what you have so fondly described as the good-old-days. Yep, life is to short for the MO life with a sliver for a profit. Joe have you seriously considered the benefits of just you and your son and dropping the headaches of being an MO.

​