The general rule that I have seen you will get a release either after 6 months or a year of not writing business the carrier will give you the release or terminate you for non-production. That being said as previously mentioned they don't have to. So get it in writing.
Symmetry Financial gives run around when trying to get release
- Thread starter Clearport
- Start date
Not true with all carriers. Many will let you contract direct without having an IMO over you.
- 17,013
Ha! That’s not true. You don’t need a release after 6-months. You can change without a release after 6-months.
A release means you can change without a long waiting period. Usually within 1 to 5-days of your request to move.
That what I thought but I know 3 agent situations Mutual Trust, Trans America, and Security Mutual Life where they can't get releases unless their upline releases and it's been way past a year since they wrote business and no debit balance. I called Mutual Trust and Security Mutual and they said it's correct.
- 30,093
You need to terminate your contracts with those companies in writing, then wait 6 months and recontract.
- 17,013
That's because they failed to cancel their contract. When agent want to move and their upline won't release they need to CANCEL their agent number with the insurance company and then sit out 6-months. This is not a release. It's what you have to do if you can't get a release.
If you forget to cancel your contract and just sit out six months it will work many times but way too often it won't. I would never recommend doing that. There are too many ways for an unsavory upline to screw with you if you leave your contract open with him. Don't do it. Plus some insurance companies won't start the 6-month count down until you cancel your agent number. There is no advantage to keeping the contract open while you wait it out.
Depends on the vesting.. If you aren't vested you will continue to be paid as long as your contract is in force but if you cancel the contract payment stops.
- 17,013
What companies don’t vest day one that anyone would ever need a release from?
You don’t need a release from captive companies. You just kick them to the curb.
Many companies have gotchas in their vesting. Continental used to charge the agent 5% of all premiums paid after termination. UNL still does this. Plus, it could be that the agent got sucked into an LOA contract. Plus, almost all the FE companies have some minimum threshold that must be maintained for commissions to continue to be paid.
- 17,013
Those minimum thresholds are the same whether you are still contracted or not. And any LOA agency is going to screw you out of your commissions once you are contracting with ANY outside companies anyway. That’s the main reason they put the agent LOA to start with.
What’s agents know that they’re moving on to better pastors they don’t need to be stepping over dollars to pick up pennies. Just cut ties and move forward.
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