Contracting: Pro's & Con's to Go Through an FMO or Go Straight to the Company to Get Contracted?

[Sky]

I recently contracted with an FMO, and I regret it. Why? I allowed the FMO to do all of my contracting with the insurance carriers for me. This was fine for the majority of them. Yet, one of the insurance carriers would not pay the FMO direct. So the FMO put their business name on the contract as the Payee and now they own my book of business for that carrier. This is business I owned before I signed with the FMO. The insurance carrier advised me to have the FMO write a letter releasing me and my book of business. Prior to signing with the FMO they assured me that my Book of Business was mine and they would have no problem with releasing me and my book of business at anytime. Well, I've sent several e-mails requesting a release of me and my book of business for this insurance carrier and to date I have not received it. My advice would be to Go Direct to the the Insurance Carrier to contract whenever possible, and only use an FMO if the insurance carrier requires it. Also, always complete your own contracts. Do not let FMO's or anyone sign your name to your contracts for you. Also, beware of FMO's promising you Leads. You might get some leads, but who owns the Book of Business and how easy is it to be released (you and the book of business)? Oh Also, ask how many up-lines will there be. I communicated with one agency (Crowe & Associates of CT) and ended up with two up-lines (Crowe & Associates and Pinnacle Financial Services of PA). I also sent several e-mails asking how Pinnacle became an up-line on by book of business (no answer yet). I'll let you know how I make out with my release. I heard good things about both of these companies. Yet, I am very discouraged with these 2 up-lines taking their time on releasing me and my book of business; that neither one of them helped me obtain.

 

[goillini52]

I recently contracted with an FMO, and I regret it. Why? I allowed the FMO to do all of my contracting with the insurance carriers for me. This was fine for the majority of them. Yet, one of the insurance carriers would not pay the FMO direct. So the FMO put their business name on the contract as the Payee and now they own my book of business for that carrier. This is business I owned before I signed with the FMO. The insurance carrier advised me to have the FMO write a letter releasing me and my book of business. Prior to signing with the FMO they assured me that by Book of Business was mine and they would have no problem with releasing me and my book of business at anytime. Well, I've sent several e-mails requesting a release of me and my book of business for this insurance carrier and to date I have not received it. My advice would be to Go Direct to the the Insurance Carrier to contract whenever possible, and only use an FMO if the insurance carrier requires it. Also, always complete your own contracts. Do not let FMO's or anyone sign your name to your contracts for you. Also, beware of FMO's promising you Leads. You might get some leads, but who owns the Book of Business and how easy it to be released (you and the book of business)?

Who's the FMO? You won't be the 1st to battle it out with an unscrupulous FMO on here and eventually get released. Make it public on here and you're more likely to get what you want, because that FMO doesn't want the bad publicity. Who is it.

 

[Sky]

My communication was with Crowe & Associates of CT. Yet, I ended up with Crowe & Associates of CT and Pinnacle Financial Services as my up-lines. Now, I'm waiting for a letter from both of them releasing me and my book of business from this one insurance carrier. I am very discouraging. I don't even want to continue selling for this 2017 AEP.

 

[goillini52]

My communication was with Crowe & Associates of CT. Yet, I ended up with Crowe & Associates of CT and Pinnacle Financial Services as my up-lines. Now, I'm waiting for a letter from both of them releasing me and my book of business from this one insurance carrier. I am very discouraging. I don't even want to continue selling for this 2017 AEP.

In your next e-mail, let them know that if they don't release you immediately you'll be discussing it here. Tell them the discussion about them is already underway. In the past few months 2 agents have brought it to the Forum and gotten released from 2 of the biggest FMO's in the country. If they're going to release you, it can be done as soon as 1 day.

 

[jdeasy]

My communication was with Crowe & Associates of CT. Yet, I ended up with Crowe & Associates of CT and Pinnacle Financial Services as my up-lines. Now, I'm waiting for a letter from both of them releasing me and my book of business from this one insurance carrier. I am very discouraging. I don't even want to continue selling for this 2017 AEP.

It's all about releases. IMO's that won't release absence of debt are the scum of the earth. Or at least of the insurance business if not the whole earth.

Not being released from a contract you never signed or were even made aware of should be a jail sentence for the crooks that impose that crap.

Only the lowest of the low will not release agents when there is no debt.

How about one of those IMO types that won't release come on here and state their case as to why they don't?

 

[CALTCAgent]

Oh Also, ask how many up-lines will there be. I communicated with one agency (Crowe & Associates of CT) and ended up with two up-lines (Crowe & Associates and Pinnacle Financial Services of PA).

It is a good idea to ask. The problem is they do not have to tell us. They can also lie to us about it. I have had that happen many times. I always felt this is something we should be allowed to know who is in our hierarchy.

I'll let you know how I make out with my release. I heard good things about both of these companies. Yet, I am very discouraged with these 2 up-lines taking their time on releasing me and my book of business; that neither one of them helped me obtain.

I know this can be a hassle, but another tip is always get the release signed and in writing. It gives more leverage to have it in writing.

 

[Northeast Agent]

Pinnacle Financial Acquires Medicare Plan Marketer | ThinkAdvisor

Terms were not disclosed for purchase of Crowe and Associates.