New to the Forum

[Colorado Newbie]

I would like to say hello to everyone here and say how much I am excited to have found this wealth of information!

A little about me, I got my start like so many people did by going to work for Cornerstone America. I went through their North Korean Style Political Indoctronation course and became a good little soldier selling lots and lots of Mega Policies. Just before I became a DSL a friend left C.A. and became a broker. After speaking with him a few times I started seeing that not all was well in the Kingdom of Cornerstone! Well, to make a long story short I had to go through an intense amount of de-Cornerstone America. I am now a very happy Insurance Broker that knows exactly what am selling!

I will say though that after my experience with CA I have a hard time trusting anyone in this business. I know that sounds rough but I feel as though I got shafted by those guys. I now owe them about $9000!

Well, non the less I am glad to now be a part of this great online community and I look forward to both asking questions and answering questions.

 

[Crabcake Johnny]

welcome to your deprogramming. so what are you selling now in CO?

 

[Colorado Newbie]

GR, Anthem, Aetna, Imerica, Celtic, KP, Humana, Companion, AIG, Assurant, American Republic and World: their Express Med product, btw, this is in my opinion a much better product than the Freedom Care.

 

[retread]

Welcome, indeed!

Don't feel like the Lone Ranger! I was Shanghai'd, too, but not from UA, NAA, Mega, et al. I fell victim to an independent group mirroring these scalawags. I should have known, though. The owner was a "former" UA manager for many years. I found out later that it was a loose association of his former UA business. They still had the same ethical standards (if you stretch the concept of "ethical"). I left with THEM oweing me money! It has taken 7 months to disassociate all my contracts.

My point to all, is make sure you know everything about the principles in any business association you join. I advocate TOTAL independence!

Now, if we can just do away with the FMO structure.... !

 

[Colorado Newbie]

Welcome, indeed!

Don't feel like the Lone Ranger! I was Shanghai'd, too, but not from UA, NAA, Mega, et al. I fell victim to an independent group mirroring these scalawags. I should have known, though. The owner was a "former" UA manager for many years. I found out later that it was a loose association of his former UA business. They still had the same ethical standards (if you stretch the concept of "ethical"). I left with THEM oweing me money! It has taken 7 months to disassociate all my contracts.

My point to all, is make sure you know everything about the principles in any business association you join. I advocate TOTAL independence!

Now, if we can just do away with the FMO structure.... !

Hmm, what is this thing you speak of called "Total Independence? And what is FMO?

I kinda feel like Grasshopper from the Kung Fu Series of the 70's.. lol...

Please Master tell me more!

 

[retread]

The marketing organization that deals directly with the insurance carrier is called a Field Marketing Organization, or FMO. Sometimes you will see the term IMO (Independent Marketing Organization). There is a cozy relationship between carriers and FMOs, some being completely carrier-owned.

Usually we think of agents who have a direct contract with a carrier and under an exclusive contract as "captive", even if they are sub-contractors. Agents who hire on as an employee of a carrier are also called "captive".

"Independent" agents sometime associate with others in a "marketing" group. This way they conserve resources on rent, etc. For example, a broker may recruit a number of agents, have them sign contracts with various carriers at some level below that of FMO, inserting himself above the agents. Read your contract carefully, and don't sign anything with blank lines!! This heirarchical structure allows him to siphon off some of the commissions on his group's sales.

The term "independent agent" gets blurred if the agents in this broker's group is kept at the "solicitor agent" level (just above his dog), which is the lowest commission rate. Depending on how tightly the group is controlled determines if the agent is captive (or semi-captive) IN MY VIEW. You may think you are independent, but just try to leave and you will find your financial interests are held captive. You will forfeit your book of business, along with those residuals.

The association with other agents in a marketing group is a two-edged sword. It may work if everyone is honest with one another, but that's the rub. The larger the group, the greater probability that someone is going to let greed rule. The argument for the association (or captive agency) is that a new agent can find a mentor, get training, leads, and (back) office support, but this comes at a price.

When I say Totally Independent, I mean I work alone. I have my own office, my own expenses, my own contracts, develop (or buy) my own leads, and have no mentoring or sales support. Obviously, unless you are very resourceful, this is not a good way to start out. Most often the advice given to newbies, is to go captive with a good company until you learn enough to cut the umbilical cord and go it alone.

In my case, the guy that set up his operation had it in mind that he would make a quick profit, cut and run, before the others caught on. He's a super salesman... one that could sell ice to an eskimo. Really slick. I was a babe in the woods, but have grown up a bit now.

All this is my take. Others may differ with their opinions. What you read on this board will vary with the experiences of the participants. Obviously, you can't believe everything you read, including me. I have been wrong at least once.

 

[hpfrench]

Welcome to the Forum! Lot of great folks giving great advice!

 

[moonlightandmargaritas]

GR, Anthem, Aetna, Imerica, Celtic, KP, Humana, Companion, AIG, Assurant, American Republic and World: their Express Med product, btw, this is in my opinion a much better product than the Freedom Care.

I thought Imerica was out of business. About a year and a half ago, they closed the home office here in Tampa and let the employees go after suspending new sales.

Did they have a reincarnation?

 

[STIBROKER]

try working for mother met......I trust no one anymore....

I will say though that after my experience with CA I have a hard time trusting anyone in this business.

 

[Colorado Newbie]

try working for mother met......I trust no one anymore....

Mother Met.. Please pardon my ignorance but I am not sure what you are reffering to.