Reciprocal Release Agreement

Aug 9, 2018

  1. Daniel J Varvir
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    Daniel J Varvir New Member

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    I need advice on getting my current FMO to sign a RRA (Reciprocal Release Agreement). I am moving my business to another agency. My current up line, who is a General Agent is giving me a very difficult time. I do not want to come across as "do this or else", as he can make this process even more difficult. I need to have this done by September 1, 2018. I have an RRA form ready to go. If he refuses to sign off, what are my options? Any other advice will be greatly appreciated. Thank you.
     
  2. WinoBlues
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    WinoBlues Guru

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    Send him link - forums.com/community/threads/reciprocal-release-agreement.94805/
     
  3. Enter the Race
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    Enter the Race Super Genius

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    This topic is always an interesting one because your going to get 19 people telling you 19 different things that you can do.

    I was told then when you interview with an IMO/FMO before you sign up ask them if they will grant you a release and if they say yes, get it put in writing that they will grant you a release if you switch companies. If the say "NO" to either of those.. shake there hand and decline there contract.

    My understanding is it not required for them to grant you a release but considered in the industry a very "scum bag" thing to do. After 6 months of not writing business with a carrier you are a free agent anyway so technically your upline is not perminently preventing you from writing business, and you can also can contracted at different carriers they they aren't preventing you from getting making a living. It more just sucks of that was your go-to carrier.
     
  4. WinoBlues
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    WinoBlues Guru

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    A question - what do you mean by "very difficult" what is the rest of the story? How long ago did you send the request? What did they say?
     
  5. Enter the Race
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    Enter the Race Super Genius

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    Good question, “very difficult” as in your just not being assertive enough with him and he is ignoring you and concentrating on his agents that are producing for him.

    or he has an ego and thinks it’s funny that he is preventing you from making money with a carrier.
     
  6. goillini52
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    goillini52 BUILD THAT WALL!!!

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    What's the name of the FMO? :huh:

    Tell him if he wants to be a douche about it, you'll take it to the Forum. You'll have to throw him to the wolves. :yes:
     
  7. goillini52
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    goillini52 BUILD THAT WALL!!!

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    That's perfect!!! :laugh:
     
  8. Packerland
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    Packerland Super Genius

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    Releases are a two-way street and not a simple release or no release. There can be circumstances where your up line has invested a lot of money in you to get you started. They may have shared with you some of their methods of gaining new business. There could be many many scenarios where they felt like they have given to you more than they have received. They could have co-opted leads with you and have not received a return on their investment.

    Saying that you should always get from any up line in writing prior to going with them a written email or letter that states that you can be released at any time at your option no waiting period from the carriers Etc.

    Each carrier has its own set of rules for instance Humana allows you to send a letter to them stating that you want to release from your current up line and you can still write business and still be paid and you will be released at the end of 6 months.

    My suggestion is to be professional and take all of the emotion out of it. It is what it is and there's no shortcuts on whether your upline will release you or not release you.
     
    Last edited: Aug 9, 2018
  9. goillini52
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    goillini52 BUILD THAT WALL!!!

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    Sooooo, do you give releases? :)
     
  10. Packerland
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    Packerland Super Genius

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    100% open release with all agent level contracts ...
     
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