Let's talk releases!

[Todd King]

Debit balance are not all the IMO could be at jeopardy for.
If an agent had a claim in the contestable period, and it was not paid due to client or agent mis-representation a charge back could occur.

Ok, once again, let's read between the lines.
You know even after a release the agent is still obligated for this. If the company can't get to the agent, then they start going up his upline. Now as for reading between the lines...seems like you are saying you want to get all the overrides and take none of the risks. While all of us in business for ourselves want to minimize risks, you seems to want to have none of the risks and pass all those downline.
Just like Frank said before, what is stopping the client from cancelling/changing after only a month? Nothing!! We take risks and so should you. But as I and many others have said here....GREED!! So you don't thinks you should have any risks? Well BOO-HOO-HOO!!
Just to reiterate another point. John said earlier, just ask Scott Slutzker of Health Choice One why he doesn't have a problem giving unconditional releases. You think maybe it's because he understands things from the agent perspective? You think it's because he feels confident that he does everything he can to keep a willing agent? And why do you think he does that? Maybe he understands that without the agents under him he wouldn't be as successful as he is. Maybe he understands that if he didn't do this he wouldn't make enough money to concentrate on being an FMO, he would have to go out and write his own business. OOPS! Didn't mean to step on your toes there Joe...or maybe I did, what the hell! You telling me that after 10 years of being a supposed FMO you still have to write your own business or you couldn't survive? Very successful business mind you have there Joe! And your two sons went to college for this? LOL

Joe, in all seriousness...maybe there is a reason you're not more successful than you are. Maybe you should start looking at some other ways because all of your ways obviously aren't working that great.
You stated earlier that you had an agent that does very good and was satisfied with his 105%. LOL, I'm not an FMO and I can offer him more than that!! I'll bet half of the agents here could offer him better.
Give it up Joe, you're talking with seasoned agents here, not greenies. Your unfounded logic isn't going to fly with us. Keep coming up with your silly little justifications and we'll just keep shooting them right down. It's good for the greenies who do come here looking for solid advice to hear both sides and how to not get screwed by the likes of you or anybody like you.
Since your 1st post you've been trying to 'advertise'. Haven't you figured out yet that it's backfiring on you?

Silly Man!!

 

[Winter_123]

Some carriers, American Equity for example, will only allow you to change every six months but the six months begins after you notify them that you want to change (if you are currently doing business and have not had a period with not business). In that six month period you can continue to write with your current FMO/IMO/MGA whatever and it does not move your planned change date out. I think you can only do it once a year or something. In other words, you dont have to go through a period of not being able to write to get out.

Seems reasonable to me. That way they keep people from hopping around but dont penalize them more than just slowing their hopping around down a bit. It works for the carrier too, I imagine, because lots of agents (we have all been there or are there now) will just abandon a product line where there are competitive products with other carriers and the current IMO is being a pain or has low payout. If American Equity did not let me change, I would just reaching into my tool box and select another carrier. This does not help carriers in the long run or short run. This is true is it not?

Winter

We do not have a form for or against a release. The companies have internal policies in place that will not allow IMO hopping by agents, except by release of the IMO or when certain time periods have elapsed.

I am sure it could become an administrative nightmare if they did not have these rules in place. Some agents would want to change IMOs every week if this were allowed.

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

 

[senior-advisor-indiana]

Joe,
Pretend that I am contracted with you for ABC Life Company at 105% and I want to move my contract to another MO to get 115%. Would you release me if I did not have a debit balance?

P.S. I worked Saturday too.

 

[MedSuppPro]

Recently, I moved my FMO contract with WellCare and with no commission changes. This after unethical behavior forced my hand. Joe, why should we put our faith in any FMO whom says “I’ll decide if and when you can be released”? That’s stupid!


When I asked for a release, my new FMO informed me that; “lately we have seen a lot more requests for release agreements.” So Joe, maybe this is a marketing change that you may just have to learn to accept.



But, in order for you to change, first you will need to think Win-Win. The more progressive FMO’s think of the release risk in two ways. First there is the financial risk (which you mention) and the other is a relationship risk (which you don't). I had no problem proceeding with my new WellCare FMO who gave me an out if he pulls another RBI (WellCrappy FMO) move on me.



My new found FMO WellCare partner has erased my doubts and strengthened my relationship by accepting a more risky position. An immediate release with only a charge back clause! Don't ya think I’ll write more business now?

 

[moonlightandmargaritas]

"A good deal sells itself."

-H. Ross Perot

 

[theinuranceguy]

Let me ask you a question Joe...

Lets say there is a two year charge back on life cases do to some specific circumstances....

Which would you prefer?

An agent writes a ton of business and then wants a release for whatever reason, you deny the release, six months later of writing no business he leaves your organization, one year later a claim comes in and come to find out for whatever reason the carrier contests it and doesnt pay the claim, but pays all the premium back to the client. BOOM! You get hit with the charge back, and there is nothing you can do about it.

Now lets say in that same scenario, you actually released that agent, but in the release you stated it was subject to charge back... You could actually go after the agent for the money owed.

So realistically, youre shooting yourself in the foot with your policy.

Any FMO/IMO that doesnt release for whatever reason, isnt running an ethical business, thats why they are scared agents will leave. Sorry to break it to ya.

And, seriously, why after so many years of running an FMO/IMO are you still going out in the field?

 

[senior-advisor-indiana]

All that stress for $22K a year doesn't sound worth the hassel. That is really hard to believe. The agency I left a year ago made 10 times more than you with only 10 agents and only about 4 consitently writing business.

 

[Mr. Bill]

Joe, with all due respect, you need to back the truck up and start over.

The model itself is wrong. How it all got started I have absoultely no idea. If the IMO/FMO is acting as a "marketing consultant", then answer this: in what other industry does a marketing consultant get paid by a company that has "talent under contract"? I can't think of one. Talent PAYS marketing consultants and agents to represent them.

The way I see it, insurance agents have lived under this asinine system for far too long, and it's simply become a customary practice. Why is it that some companies require an IMO/FMO between the TALENT (agent) and themselves, and others do not? I don't have the answer to it. I will willingly pay for the "right" marketing expertise, and any education I feel I need (or is required by law). I will happily do my own work. If I need some $10 per hour person to run an illustration for me, or to compare companies, or whatever, I'll pay it.

I don't need a IMO/FMO to receive an override off my back. I AM the Talent. You are not, otherwise you'd be out there in production and making your own money.

BTW, I had lunch with a snake-oil salesman last week trying to get me to lube up. Selling "Asset Management Services" through WFG Financial. So, if I were to use this clown, how many people are going to get paid BY MY CLIENT? Let's see. First, there's me. Then, there's this *** snake oil salesman. Then, there's his boss person at WFG and all the crap idiots above him. At this point, NO ONE IS MANAGING MY CLIENTS' ASSETS. From there, WFG has selling agreements with 7 different "money managers" who each have their own wholesaleing staff, marketing departments, administration and overhead. Finally, we're getting nearer the top of the food chain.

It is an abomination that this model is in place. The IMO/FMO model is no different. There are a whole lot of people who are getting paid, ultimately, by the client.

And you thought the tax system was screwed up? It doesn't compare to the insurance industry.

 

[Joe Moore]

With the comments on this subject, I am beginning to see it is a serious problem for some that needs some attention. I really am glad I brought it up, even though I have been knocked around some for my thoughts and comments. I am a big boy though and think I can take it.

I have never had the problem, but when it does arise I realize someone feels "trapped".

I look at the insurance industry as a 4-legged stool. It has to be good for: 1. the client, 2. the insurance company, 3. the agent and 4. the marketing company (now that the companies have mostly turned over the sales to the marketing companies). You cut off one of those legs, and it is not a balanced situation. All need protection from abuse by the others.

My thoughts right now are to create and "unconditional, conditional" release form. In other words, unconditionally we would be required to give a release, with certain conditions
being met.

I think it is a small number of agents being hit by the problem, and a small number of marketing companies abusing the system. But, when it does arise, it can affect a person's ability to make a living.

Some initial thoughts on some of the conditions to transfer:

1. 90 day keep writing under our organization; after 90 days, transfer to new IMO. An agent could keep writing this way and this would provide time for an agent to determine if they had been "had" before changing.

2. Right to come back to our organization anytime within next 12 months, at the option of the agent. This would have to be signed by the agent and the new IMO.

3. Agent agrees to indemnify IMO for all debit balances, chargebacks, recisions, etc. arising in the future.

4. No transfers directly to insurance companies, or a IMO owned, partially owned or controlled by a company. If allowed, this could have the effect of cutting out the IMO of the business that he has spent many dollars helping create.

5. Releases do not apply to downline hierarchy agents. This
gives our direct contracted agents and agencies protection from us taking over their downlines and cutting them out of the mix.

These are some of the thoughts I now have to try to make it a fairer situation for all involved.

Responsible comment, ideas and input would be welcomed. If you would like to do it outside this board, please email me.

This is more of a problem for some than I actually realized.

I feel we will be extremely busy this week (hopefully) and I may not have the time to deal with this subject as much as needed, but any input and thoughts will be appreciated.

Thanks

 

[senior-advisor-indiana]

I think a 3 legged stool works doesn't it?

So an agent that is contracted under one of your agents would not be able to get released?