Replacing Business

[KINGBICHO]

I recently went independent from a captive company. I have kept in touch with some of my ex clients. I realized that most of them I did sold them a higher priced policy than the ones that I have to offer. Most captive companies threaten you to not talk to their clients or replace the business written since the book of business stays with the company written on. My question is what is the worst thing that can happen if I replace business with a lower price or better product. What can the captive company do to you? I mean I do not want to replace all of the business that I wrote with them just a few policies here and there....any advice?

 

[Josh]

Generally speaking it's bad business. Check your contract, odds are it addresses. They can do lots if it's in the contract. If it's not, it's more of a question of ethics. There are plenty of ways of generating business that doesn't involve poaching from your old company, you may want to focus on that.

 

[Newby]

Just start fresh and market to everyone, not your old clients. Any of them that contact you about your new company are fair game if you can improve them. But don't set out to flip business.

 

[xrac]

I recently went independent from a captive company. I have kept in touch with some of my ex clients. I realized that most of them I did sold them a higher priced policy than the ones that I have to offer. Most captive companies threaten you to not talk to their clients or replace the business written since the book of business stays with the company written on. My question is what is the worst thing that can happen if I replace business with a lower price or better product. What can the captive company do to you? I mean I do not want to replace all of the business that I wrote with them just a few policies here and there....any advice?

They can sue you and perhaps win. If they don't win they can still cause you to spend thousands in legal fees. You probably have some type of non-compete or non-solicit clause.

 

[BIG RED IS BACK]

why do people worry about their past clients so much, there is SOOOO much business out there, you dont really need them.

 

[KINGBICHO]

I left them in November and Im still appointed with them. I dont understand on why they wont get rid of my appointment. I know there is lots of business out there....there just a few clients that I wanted to cross over. Can they sue me for flipping around 4-5 clients?

 

[Josh]

I left them in November and Im still appointed with them. I dont understand on why they wont get rid of my appointment. I know there is lots of business out there....there just a few clients that I wanted to cross over. Can they sue me for flipping around 4-5 clients?

Depending on what your contact says, yes.

Would they? Maybe not.

Is it worth the risk?

Is it worth being an agent of questionable ethics?

 

[Sales71]

I left them in November and Im still appointed with them. I dont understand on why they wont get rid of my appointment. I know there is lots of business out there....there just a few clients that I wanted to cross over. Can they sue me for flipping around 4-5 clients?

Well CA is a big state with big premium. So If the company took the book back I would dought that they will worry about a few policies since rate is not good anyway.

But If you sold to another agent I would Leave the Client alone and wish him the best.

 

[xrac]

I left them in November and Im still appointed with them. I dont understand on why they wont get rid of my appointment. I know there is lots of business out there....there just a few clients that I wanted to cross over. Can they sue me for flipping around 4-5 clients?

Honestly, 4-5 probably won't make any waves unless they are really big policies. However, you never know. Who is the company? Someone may have experience with them for this type of thing.

 

[donamese]

If the clients get a hold of you and inquire you have a much better arguement than if you call the clients and offer something new.