New Agent Contract/Bankruptcy

[InsuranceNewbie]

Hello all, I've been lurking for some time now and have learned a lot from this site. Everyone's experience and expertise has been greatly appreciated as I'm embarking upon a new career in insurance.

I have used the search function and found some information regarding BK's and how they can affect new agents, but haven't gotten a real definitive answer to a problem I'm having.

I'm in Michigan and I've been extended an offer to join an insurer here as a captive agent (I'd prefer to leave the insurer nameless for anonymity sake). I have obtained my licenses already and will be selling Life & Health as well as P&C. Despite having poor credit, I have passed their background check. My poor credit did not go unnoticed, however, and I explained to them that I am doing my best to get all of be debts settled. However, in the course of doing so, I've had increasing problems with creditors and going back on settlements after I had made payments and so on. I've consulted with an attorney who has basically told me flat out that trying to settle with collection agencies and so on can be very difficult and I will likely be left frustrated and my best course of action would be to cut bait and file for BK (Most likely Chapter7).

My question now is, how could this affect me moving forward in this industry? As I said I've accepted the offer from this particular insurer, however, I've not signed any contracts or paperwork yet. I'm planning to do so in the next couple of weeks. I desperately need to get my financial house in order, but can't afford to lose this opportunity. Once I'm signed on if I do file BK, could they come back on me and terminate my appointment with them? Or what other problems could I be facing with any other issues as far as getting E&O coverage or anything else I may not be aware of yet?

Thank you in advance for any insight or advice!

 

[xrac]

They can do anything they want as far as your employment goes. You haven't been hired if you have not done the paperwork yet. I would probably drag my feet about the BK until I am actually hired and working and then talk to my immediate superior about the situation.

 

[InsuranceNewbie]

They can do anything they want as far as your employment goes. You haven't been hired if you have not done the paperwork yet. I would probably drag my feet about the BK until I am actually hired and working and then talk to me immediate superior about the situation.

Understood. That's why I said I haven't signed anything yet, but have a meeting set to go and sign paperwork... and I'm not 100% sure this is the route I want to go. I've gone back and forth, but am in a pretty bad spot and would like to get a fresh start.

 

[mangroveman]

They can do anything they want as far as your employment goes. You haven't been hired if you have not done the paperwork yet. I would probably drag my feet about the BK until I am actually hired and working and then talk to my immediate superior about the situation.

Isn't MI a right to work state? IF thats the case, absolutely do not file before you are hired. Once hired, you are golden. They can't fire you for that. However, I wouldn't make it common knowledge, tell as few people as possible, and if your boss finds out, let it be from public records.

 

[xrac]

Isn't MI a right to work state? IF thats the case, absolutely do not file before you are hired. Once hired, you are golden. They can't fire you for that. However, I wouldn't make it common knowledge, tell as few people as possible, and if your boss finds out, let it be from public records.

If he is 1099 and not a W-2 employee the right to work state doesn't enter in to what they can do.

 

[Crabcake Johnny]

Isn't MI a right to work state? IF thats the case, absolutely do not file before you are hired. Once hired, you are golden. They can't fire you for that. However, I wouldn't make it common knowledge, tell as few people as possible, and if your boss finds out, let it be from public records.

This is incorrect and has nothing to do with "right to work." Right to work deals with unions. You can be canned for basically anything.

 

[mangroveman]

This is incorrect and has nothing to do with "right to work." Right to work deals with unions. You can be canned for basically anything.

Thanks for the clarification. Wasn't sure how this worked. Down here I can terminate if someone looks at me funny.

 

[VolAgent]

Thanks for the clarification. Wasn't sure how this worked. Down here I can terminate if someone looks at me funny.

Right to work refers to being required to join a union or at least pay dues after accepting the job. It does not change the conditions under which you can fire someone. As long as it isn't discriminatory in nature, you can fire anyone at any time. Unless you have a contract, collective bargaining agreement, civil servant act, etc. specifies otherwise.

 

[WinoBlues]

Right to work refers to being required to join a union or at least pay dues after accepting the job. It does not change the conditions under which you can fire someone. As long as it isn't discriminatory in nature, you can fire anyone at any time. Unless you have a contract, collective bargaining agreement, civil servant act, etc. specifies otherwise.

That sounds a bit contrary.

 

[InsuranceNewbie]

So the bottom line here still seems somewhat muddled as to whether or not this would potentially get my contract terminated? The company I'm contracting with is already aware of my credit issues and it has been discussed at some length... I'm just worried that a BK could send it over the edge. Be that as it may, I don't feel like it's something I can bring up now, as I've already had a lengthy explanation of my credit situation, and I fear that even broaching the subject of a BK may be as bad as filing itself, if it indeed is a deal breaker.