Networking with a Liberty Mutual Agent? Would this Work?

[todd02]

Knowing that Liberty mutual agents make complete BS of renewals but great upfront commissions I was wondering if any liberty Mutual agents in here would be willing to or have thought about at month 11 of a policy holders term, give their info to another Agent at another company to try and capture their business. Then the new agent pays a side commission to the LM agent. I'm sure there is a non compete you would have to fight and such but I'm sure their are legal ways around anything.

I was thinking about approaching some local LM agents in my dfw area. But would like to test out the idea with LM agents on here first so I don't get laughed at or punched in the face. lol

 

[djs]

Creative.
Probably a good way to cost a LM agent their job, but a creative approach.

The problem you'll face is it is unethical (in my view) of an agent to share current policy holder info with a competing company. While they may not make the best of commissions, they do get paid a salary and did get paid to bring that client to LM. They are also paid to NOT send the clients elsewhere.

Dan

 

[todd02]

Ya I can see the glass is half full approach but how does this differ from the husband/wife or brother's who one has a captured agency and the other has an indy. You know for a fact they share info between eachother to capture all clients. We have a local family in DFW area in Texas and EVERYONE knows them. The dad is the largest SF agent, the daughter is one of the largest Farmers, another daughter is an Allstate and the son has one of the largest Indy agencies.......

 

[Norwayguy]

Ya I can see the glass is half full approach but how does this differ from the husband/wife or brother's who one has a captured agency and the other has an indy. You know for a fact they share info between eachother to capture all clients. We have a local family in DFW area in Texas and EVERYONE knows them. The dad is the largest SF agent, the daughter is one of the largest Farmers, another daughter is an Allstate and the son has one of the largest Indy agencies.......

Yes but in those cases they are refering someone they can not write to a friendly agent...Much different that taking someone an agent not only can write but has a policy with and selling away. I have never looked at a LM contract but I can not imagine there is not a nonsolicitation agreement not to mention the ethics.

Having said that I think if you have a market that LM does not write it would not hurt you to build a relationship for the agent to refer that type of case to you.

 

[blue_wynd]

Yes but in those cases they are refering someone they can not write to a friendly agent...Much different that taking someone an agent not only can write but has a policy with and selling away. I have never looked at a LM contract but I can not imagine there is not a nonsolicitation agreement not to mention the ethics.

Having said that I think if you have a market that LM does not write it would not hurt you to build a relationship for the agent to refer that type of case to you.

This is the better option.

 

[Jinc]

Ya I can see the glass is half full approach but how does this differ from the husband/wife or brother's who one has a captured agency and the other has an indy. You know for a fact they share info between eachother to capture all clients. We have a local family in DFW area in Texas and EVERYONE knows them. The dad is the largest SF agent, the daughter is one of the largest Farmers, another daughter is an Allstate and the son has one of the largest Indy agencies.......

Wow... what a family!!

 

[nyc2phi]

It is against a LM agents contract to except compensation for any business we refer out and if we were to refer out our own customers we would most likely lose our jobs...

We do not write commercial so I send commercial business out to brokers all the time but am not able to collect on it.

 

[VolAgent]

This would go way beyond a non-compete and not receiving compensation on referred business.

This is trade secrets and violation of the insured's privacy. The LM agent won't be losing his job, he'll be going to jail if caught. This is no different than some LM employee selling a list of policyholders to another company.

Don't quote me on it, but they could probably go after you as well for theft of trade secrets as you paid an employee to do it for you.

 

[Jinc]

How could it be proven?

 

[VolAgent]

How could it be proven?

You don't think LM is able to monitor their systems to see what information is being accessed? There is no reason for the agent to review every case at 11 months.

Even if he got the info at application, do you think LM wouldn't notice all his business rolling off at renewal?