Value of an FMO

Why not just be clear and state:

"The agent owns the business?"

Sounds like a reasonable request. But then attorney(s) would not get paid to draft contracts. That being said, here is directly off their website.

"
Benefits of Becoming an Agent with Health Choice One

100% Independence
You are 100% Independent. You own all rights to your clients, commissions and renewals. You do not need to assign your commissions.

"

Health Choice One - Become An Agent
 
I suspect the contract the agent signs has more legal significance than the text on a website.

I agree. And the contract does NOT say that they own your business. It says they own your supplies. Which, if you check your standard contracts with most carriers, you'll have similar verbiage as the one I posted. I posted a sample of my contract from Nationwide, it says the same thing on several carriers contract. That being said, I use to write for Columbian Life under a GA, when my GA got terminated so did I. I got a letter in the mail from Columbian asking me to return all their supplies to my manager. I never got around to it and eventually just threw it in the trash. That being said, I STILL get renewals from Columbian.
 
Tristan the proud pit bull owner said- "when my GA got terminated so did I. I got a letter in the mail from Columbian asking me to return all their supplies to my manager. I never got around to it and eventually just threw it in the trash. That being said, I STILL get renewals from Columbian"
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You make a strong point there er I mean your point here is what? The fact that you never returned a few brochures and envelopes and still are getting renewals proves absolutely nothing. You are making what is known as a pointless point! Now go clean the pit bull crap up off your basement floor and do something useful is that what you wanted to hear?:1err:
 
Tristan the proud pit bull owner said- "when my GA got terminated so did I. I got a letter in the mail from Columbian asking me to return all their supplies to my manager. I never got around to it and eventually just threw it in the trash. That being said, I STILL get renewals from Columbian"
================================================

You make a strong point there er I mean your point here is what? The fact that you never returned a few brochures and envelopes and still are getting renewals proves absolutely nothing. You are making what is known as a pointless point! Now go clean the pit bull crap up off your basement floor and do something useful is that what you wanted to hear?:1err:

You are about as intelligent as you are tactful. The fact that I get renewals proves the fact that I still own my business. The same clause that this refers to, saying the company owns all of my supplies is one of those clause that no one ever enforces. The baulk here is that HCO says they own your supplies, which I don't think is a big deal because you - the agent - never owns the supplies anyway; the carrier does.
 
Hi Gang,

Let me clear this up. It's not what you think in terms of being "a negative".

In fact, sections 8 and 10 of the agreement do NOT apply to any of our current agents.

Sections 8/10 refer to ownership of client lists SUPPLIED BY HCO to an agent. We do NOT supply client lists to agents. Our agents are all independent and create/use their own client lists by way of purchasing leads, etc... Therefore, these sections DO NOT APPLY to any of our agents.

What sections 8/10 are saying is that "IF" (and that's a big "IF") HCO gave you a client list to solicit business, we would own those clients. However, we do NOT, so again, it's a mute point and does not apply to any of our agents.

Our attorney wrote this into the agreement many years ago "just in case" we ever decided to run a career division where we supplied client lists or leads to agents.

Any of you that are not convinced that this clause does not apply to you, just send me your agreement, I'll cross out sections 8 and 10 and initial them... OR, I can send you a revised agreement that removes the language pertaining to client lists.

I can assure you that we do NOT own any clients and no agents on this forum have ever had a client taken from them by HCO. It's against everything we stand for.

Hope this helps...
 
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