Using an Attorney to Get a Release from a FMO

Discussion in 'Senior Insurance Forum' started by vertex, Jun 19, 2017.

  1. vertex
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    vertex Well-Known Member

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    Has anybody ever used an attorney to help get a release from a fmo that continues to drag their feet despite all good faith efforts? I have reached my limit!
     
  2. somarco
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    somarco Well-Known Member

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    Why do you think paying an attorney to write a strongly worded letter will make them willing to speed up the process? What kind of leverage do you have? How have you been harmed by the delay in releasing you?
     
  3. Todd King
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    Todd King Well-Known Member

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    By the time you spend the money and the time it wouldn't be worth it. Just go 6 months without writing the particular company you're wanting to move and you don't need the former FMO's permission.

    Who is the FMO? (Help others here so they won't get hooked up with a group like that).
     
  4. donamese
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    donamese Well-Known Member

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    You may want to terminate the appointment with the carrier. Some say 6 months of no production, others request you be terminated for 6 months. Better to check with them just to be on the safe side and not cause further delays.
     
  5. jdeasy
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    jdeasy Well-Known Member

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    Companies and IMO's are in this together to enforce a contract provision on agents they never signed.

    The company can over ride the IMO if they want to. Most won't because they don't want to upset their partner in this hoax.

    It would never stand up in court but by the time you won in court the waiting period would be over anyway. Plus you are out the expenses.

    The companies and IMO's all know this. That's why they don't care.

    Unless you want to take on the whole system then just term your contracts and write others until the time is up to recontract.
     
  6. Newby
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    Newby Well-Known Member

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    When agents want to come to us and they are thinking the way you are I tell them to forget those companies you think you need. Quit losing sleep over it.

    Just contract with new companies. You only need one or two good ones and a GI and you are back in biz. Then CANCEL all the ones you couldn't get released from. In six months if you still want them, you are good to pick them up.
    You are only trapped by your own mind. Nothing can stop you unless you allow it to.
     
    Last edited: Jun 19, 2017
  7. NSRH
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    NSRH Well-Known Member

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    True for the FE market, but not necessarily for the senior health market. Some agencies, especially captive ones, may get you appointed with most, if not all the players in your area. If you're not released, you're out of business, unless you sell another line of insurance.

    Up front releases are not only important in the FE world, but I would say mandatory in the senior health world.
     
  8. Newby
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    Newby Well-Known Member

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    Medicare Advantage I can agree with you on. Not Med Sups though. Too many players there. If there isn't a competitive one available now just wait 15-minutes and there will be.

    I agree that it's easier if agencies just release. But I have run into very few situations where it really held the agent back. There is just too many companies. No one has them all tied up.
     
  9. GreenSky
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    GreenSky Well-Known Member

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    I got screwed years ago by Applied General Agencies (AGA) when I was first told about the 6 month slavery "clause" in their agreement with UHC. I could have sued and certainly been released but it would take years and I'd have to sue UHC in the process.

    I'd win the battle but lose the war. We are all appointed at the "pleasure of the company" and can terminate us for any reason. I'm sure a lawsuit would be reason enough.

    There is little you can do when you work with a dishonest FMO.

    Rick
     
  10. mbiallas
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    mbiallas Well-Known Member

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    I am looking to get involved in MA soon and am looking to see what IMOs are offering in this space. Any recommendations?
     
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