Replacement Form Contra Firm Notification

Hello,
I will cut to the chase. I am independent and work with an Insurance Company that provides me leads. I pay for the leads (and they ain't cheap). The contract states if I replace a policy they will term my contract, which would leave me with a balance. I have a customer that I determined would be better served with a different policy/carrier. I've replaced before and got a NastyGram.

How does the contra firm know there was a replacement and that I was the one affecting the change? Is there a way for the contra firm to NOT be notified that I am the agent?
 
Learning moment for me....if you are truly independent, does the name of the agent who filled out the replacement form revealed to the company being replaced?
I understand the company might have handed this off to the IMO/FMO in question which is what might have occurred with the OP.

But, I'm asking anyone that knows, if you're repping 2 different companies, and decide to replace the first one you place the business with (all hypothetical for illustrative purposes), will that first company receive all that data including agent name? Typically most companies ain't too happy with this maneuver, but as an independent we're always supposed to be doing what's right for the client.
 
Yes. In my case, the "contra" firm (first company I wrote) was notified when I replaced one. I was seeking to do what was in the best interest of my customer and was told if it happened again I'd have my contract terminated.
 
Yes. In my case, the "contra" firm (first company I wrote) was notified when I replaced one. I was seeking to do what was in the best interest of my customer and was told if it happened again I'd have my contract terminated.

As is their right.
 
What you may not see is their worry about churning business within their own ranks. You replace one policy with another within the same group you're working for. Later, someone complains to the OIC and their fine will be much bigger than yours.

They have the concern that the OIC might see them as a company who churns business as a general way of business. They don't want that kind of attention.
 
Actually, it's a semi-captive outfit and they don't rep any other companies but one. It's a good product for a specific demographic but NOT what's best for everyone in all situations. That's unfortunate. I submitted biz today that would violate my contract and cause all my advances to be charged back, PLUS my lead balance BUT that would've happened eventually. I had to rip the bandaid off. The biggest things to me were effective lead program, being able to service my existing book, and some loyalty to the manager that brought me on. I am looking at LeadHeroes and Benepath for Leads. They look good. So do some providers of FB Leads. I need aged leads right now, so Benepath has a nice offering. ALLWEB is just too hit or miss for me...
 
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