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.
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