Puritan Life Stealing Clients

Feb 14, 2013

  1. senior-advisor-indiana
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    senior-advisor-indiana Guru

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    You write twice as much as Rick! You da man.
     
  2. IndianaAgent
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    IndianaAgent Expert

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    I see your point. In this case though when Puritan buys a company with an active client base isn't that part of the benefit for them to buy the company? Shouldn't you be more upset with the company that sold the business?

    I've had my client bases raided after I left Bankers Life and Casualty and Great American. I know how frustrating it can be. That is the main reason I will never work for an agency again. I plan to remain independent.

    I did review the Puritan Agent Contract. Wow. It explains how you will review trust documents for clients, but then talks about how to avoid giving legal advice. Sounds like you would be walking a very fine line in each appointment. Also, the commissions were beyond terrible. I can see them expecting an agent to accept a reduced commission for them setting appointments. However, with all of the time spent by an agent driving and selling they should expect at least half of a standard commission. Most of their annuity commissions hovered around 2% on products that easily pay between 7-9% at street level.
     
  3. rousemark
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    rousemark Still Here!

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    When a company buys another they should honor the agent's contract. Over the last 41 years I have been through company buy outs. None raided my client base for replacement (they did make offers of new products).
     
  4. IndianaAgent
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    I guess the best defense to this is making it difficult for your client base to be raided. Servicing clients and offering the best products would be the best way to do this.

    It does seem shady. I remember when National States went through bankruptcy and was sold. I think most of my clients there are still on the books. So I'm glad they didn't do this kind of thing.

    I kind of thought that Puritan was doing what you had mentioned in your response. They were basically calling the clients to offer additional products. I could see how an agent would get ticked off if they were targeting their policies for replacement. Right or wrong, I guess it can be the nature of the business.

    Like I mentioned previously, after seeing the Agent Contract I plan on staying away from them. Also, what's the point of selling for a company if they are just going to replace everything you write if you ever leave?
     
  5. senior-advisor-indiana
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    senior-advisor-indiana Guru

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    What GASB office did you work from?
     
  6. IndianaAgent
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    The Evansville office.
     
  7. senior-advisor-indiana
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    I was working from the Muncie office. That was 5-6 years. It's no longer a GASB office.
     
  8. elder
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    elder Super Genius

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    I just lost another today. Damnit.

    Indiana Agent-why would an insurance company (Puritan) have a brokerage move client to another company they DO NOT OWN? Makes no sense, crooked.

    AIMC and Puritan are in a legal battle right now over this. I was just updated on Friday, go to the court very soon.
     
    elder, Apr 15, 2013
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  9. Ronnie Carter
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    Ronnie Carter Guru

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    Just ran into a very attractively-priced Plan G Puritan supplement here in TN last week. Do you have any updates as to this litigation?
     
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