Small Print on Agents Contracting

[Mark]

I suggest you read every word on every contract you ever sign.

But some insurance companies contracting, it has something that most people never notice.

What I call the "mediator clause"

That basical says if you dont agree with anything, like a debit balance, you have to fly to city and state that the pick on their contract and go in front of a mediator.

Would you pay for a flight and hotel for a small debit?

Most people would not pay for a hotel and flight, to fight over a $500 debit. They would only break even if they won.

Dont forget the insurance company makes the contract that you sign.

Madison National Life has this on their contracting.

 

[Josh]

Are you referring to an arbitration clause?

If you're going to call out Madison National by example, would you mind posting the exact language here?

 

[GreenSky]

I suggest you read every word on every contract you ever sign.

Mark -

I'm only using you as an example for this question because I already know you release upon request (subject to chargeback) but do you automatically let agents know your release provisions when they sign with you?

Shouldn't this be part of everything an agent signs whether they use someone honest like you or Todd, etc. or a complete douche?

Rick

 

[Todd King]

I don't usually send out my "Pre-agreement of release" when I send contracting to agents. Maybe I should, but it wouldn't change the way I do it in any way.

 

[GreenSky]

I don't usually send out my "Pre-agreement of release" when I send contracting to agents. Maybe I should, but it wouldn't change the way I do it in any way.

Here's what I think is fair and should be put in writing.

You are automatically released after non-production of (ie) 6 months.

Or you can give me a 3 month notice. You will be released at the end of that period and still write business in the meantime on an as-earned basis.

All this subject to charge back issues.

Rick

 

[Todd King]

Nah, that's just too much trouble to go through. If an agent wants a release and doesn't carry a debit balance (that won't be paid back through existing business), I would just as soon go ahead and release them rather than trying to keep up with all of that.

 

[Mark]

Are you referring to an arbitration clause?

If you're going to call out Madison National by example, would you mind posting the exact language here?

I'm attaching the photo of it since you asked.

Mark -

I'm only using you as an example for this question because I already know you release upon request (subject to chargeback) but do you automatically let agents know your release provisions when they sign with you?

Shouldn't this be part of everything an agent signs whether they use someone honest like you or Todd, etc. or a complete douche?

Rick

Because an open end release letter can get an IMO in trouble. Each release has the agents info and # on it. If you just gave out a blank one, the agent with a debit balance could stick you with the debit and then go to another imo later. Some companies, after they roll the debit to the IMO, will reset the agent and allow them to resign up with another imo and act like the debit never happen.

But to save time, an agent can always ask for the release up front and get it from us. It wont be a blank one, but will have just his info on it. The release letter will basical say that you can be released if you dont own the company money that we will have to repay...to keep it simple..

There are a lot of what I call time robbers out there and most of them go from IMO to IMO looking for a quick fix and to get rich quick type of deal.

If I spend over 100 hours with an agent, I might not release them also. So that is two reason when the normal IMO would not release an agent. For debit and done spent a lot of time on an agent.

 

[Josh]

@ the arbitration clause: I'd be willing to bet if you filed a demand for arbitration they would let most of the arbitration occur by phone/e-mail/etc. The arbitrator at the AAA is going to make the call on that one.

 

[VolAgent]

Not saying I agree with this, but you really didn't think they would come to you for the arbitration, did you?

 

[Crabcake Johnny]

I'm attaching the photo of it since you asked.



Because an open end release letter can get an IMO in trouble. Each release has the agents info and # on it. If you just gave out a blank one, the agent with a debit balance could stick you with the debit and then go to another imo later. Some companies, after they roll the debit to the IMO, will reset the agent and allow them to resign up with another imo and act like the debit never happen.

But to save time, an agent can always ask for the release up front and get it from us. It wont be a blank one, but will have just his info on it. The release letter will basical say that you can be released if you dont own the company money that we will have to repay...to keep it simple..

There are a lot of what I call time robbers out there and most of them go from IMO to IMO looking for a quick fix and to get rich quick type of deal.

If I spend over 100 hours with an agent, I might not release them also. So that is two reason when the normal IMO would not release an agent. For debit and done spent a lot of time on an agent.

You guys need to create a "Super FMO" that gives out higher comp with zero training and support (especially in cases where you can't go carrier direct.)

There are a lot of "doers" out that who don't whine, cry, or mope. They just write business.