Newly Licensed Agent - Non-Compete Agreement

[PaperHearts]

Hello. I am brand spanking new to insurance. After deciding to get into a new career field and under the advice of a friend in the insurance industry I attained my insurance producer license in the state of North Carolina with lines of authority in property, casualty, life, and accident & health.

I've had two interviews and one job offer. The job offer I was given is with an agent opening a brand new agency with no book of business. He has been very upfront with the fact that the job will be "new customer" oriented and there will be high sales goals.

The problem is this... There is a non-compete agreement I must sign up front with a 1 year 50 mile term. I completely financed my insurance license on my own to the tune of about $1,600.00 for class and fees. There is a very real possibility that I will not meet the sales goals set due to my inexperience, high sales goals and needing time to learn. I will be terminated after 90 days if I am not meeting those goals. That's in writing too.

The non-compete will pretty much make it impossible for me to get another job in insurance in the city I live in. I have only been looking for a job in insurance for a week so far. The position offered is 100% commission based with no guarantees and my friend is telling me the commission structure is kind of a joke to begin with.

Is a non-compete agreement not allowing me to work for any other insurance company for 1 year and within 50 miles common place and/or standard? The agent wants an answer to the job offer by Monday. All things considered should I take a chance on this agent or turn down the offer? I have another interview lined up Monday morning too.

Thoughts please?

 

[Golfnut2112]

There is no way I would consider the offer because he is not offering anything. As far as the non compete clause not sure if it is to restrictive and would hold up, I would contact a lawyer to read it over. I have been doing this for nearly 30 years and the two things you should NEVER sign are, a non-compete clause and a commission assignment form.

 

[pfg1]

Ditto.... golfnut said it. It might be way different if he had a successful agency already.

 

[indienoise]

I don't think the "consideration" is strong enough to validate a non compete, but I'm not a lawyer and they don't have to be right to win in court, just have more time and money than you - and if this is a captive agency, you've got the resources of one huge company against you in such an event. I would not sign it.

 

[CASouth]

I signed a non-compete on 1999 and couldn't meet the sales goal; they paid for my license and training; 6 months later I got a job with another agency a cross the street and they never even cared; but its CA and we have over 6500 P&C agencies; most of employers ask for no compete just cause its part of the package you sign; plus you don't know; it might just work out! I opened my own 2 years later.

 

[Sherota1]

RUN!!! That's the only advise I can give you. Too many new agents are fed a lot of half truths and become disillusioned. Lack of information and aligning your self with the wrong people will kill your career quick. I've been licensed since 2008 and did find my way until I quit listening to those that wanted to lure me for their own benefit. It wasn't until I said enough educated my self, reinvented the wheel and began running my business the way I want and targeting the clientele that I wanted. In this business you can seek advise but it's best to learn early you need to look out for your self. Check out this thread. I wished I had this information when I was just starting out.

Guidance For New Life Agents

 

[1963]

You don't need to be in a commission-only contract off the rip. Continue to interview; there are some agent-friendly companies out there that would give you a shot with decent sales goals and good training. Some train you with a modest salary for a set period of time, after which you are paid based on performance. In any event, there is no need to commit to a 100% commission-based contract as a newby to the game.

 

[markinsurance5]

no- they will terminate you after 90 days- for what? theyre not paying you anything. are they giving leads? this is a big scam well not scam but theyre just using you and wasting your time. Go for another company

 

[DHK]

There is a difference between a non-compete and a non-solicit.

The vast majority of companies have a non-solicit agreement for at least 1 year so that you won't go back to THEIR customers and switch them over to a new policy with a new company.

A non-compete where you can't do anything for a period of time and/or within a certain radius... generally won't hold up because they are essentially putting you out of business.

However, there needs to be some sort of consideration in the mix. What are they providing? As I posted in his other thread with the same post... you have to know if they're providing sufficient quality and quantity leads and training to close those leads. If they're not, and it's only you doing your own lead generation, it might not be worth signing.

I signed a non-solicit agreement with my credit union when I was there. I also signed a non-solicit agreement at MassMutual - that I wouldn't replace business for 1 year and not solicit agents for 1 year either. Well, that makes sense because Mass has quality products and they don't want their agents being recruited away. Even Combined Insurance had me sign a non-solicit agreement for 2 years. lol

 

[BigIVU]

There are some fine insurance agencies in North Carolina that have been around for years and looking for good, young producers. Go to Home and contact them for advice. They may have a web site and/or newsletter feature for people looking for production or service jobs.