Independent Agent vs Captive Agent

[JordanS]

There's always more to the story. Of course, by quitting, you can't get unemployment. You have to be terminated or laid off.

HOWEVER, your compensation changed last year. We're into May already. How have you done during that time? Apparently you accepted these terms last year, so it's not all that sudden, right?

I tried to succeed in it but they took our leads away and gave it to "their favorites" and now only a select few were making money 4-7 agents quit or were fired each month last year. Now I'm following suit. This boat is sinking.

 

[pfg1]

Sounds like you might need to find another job job, then once you do - quit the agency you are with. You will still be licensed, so go indy and write on the side until you get your feet under you. Use the job job to pay the bills until that time. I didn't see how you get your prospects now, but thats the key to making it indy or captive.

 

[DHK]

I tried to succeed in it but they took our leads away and gave it to "their favorites" and now only a select few were making money 4-7 agents quit or were fired each month last year. Now I'm following suit. This boat is sinking.

They're trying to manage you out: little to no leads and 3-4x the initial goals - they don't want you, but they want you to quit rather than be terminated. Maybe you should just let them terminate you for non-production - since others were also fired.

You just don't want any kind of breach of contract or other termination "for cause".

I hate even typing that, but companies have to play fair too.

 

[JordanS]

They're trying to manage you out: little to no leads and 3-4x the initial goals - they don't want you, but they want you to quit rather than be terminated. Maybe you should just let them terminate you for non-production - since others were also fired.

You just don't want any kind of breach of contract or other termination "for cause".

I hate even typing that, but companies have to play fair too.

I was hoping for this months ago, they won't fire me. I want the unemployment so I can ethically sell independently but they just won't I'm a glorified servicing agent at this point and I think they don't care. My hope is that I fly under the radar for a month and then just quit. I heard of an agent who did this with my current company and got away with it for 4 months before they confronted him and they didn't even fire him they said they would terminate his contract if he didn't remove the other appointments and he just straight up quit. By that point I'm sure he got the safety net needed to be fine as an independent.

 

[DHK]

You may want to talk to a labor law attorney. Hell, you might even have grounds for a lawsuit.

 

[JordanS]

You may want to talk to a labor law attorney. Hell, you might even have grounds for a lawsuit.

Everyone says that but how long is that going to take and how am I to prove anything? It just seems easier to get my independent sales going and leave.

 

[DHK]

Here's my underhanded thinking (again - NOT legal advice):

You go ahead with your plan. If they threaten to terminate you for breach of contract, you bring up that you have a labor law attorney you've been talking to about the lack of support in this role - and you'll let them let you go without a lawsuit?

Just a diabolical mind at work - but you really should talk to a labor law attorney anyway. Maybe you could still sue regardless? I don't know.

 

[sman]

I'm an employee for a company that sells life insurance, I get a base hourly pay with commissions as a bonus monthly. However last year that all changed since the company wanted to save money so instead of at least giving a 30% commission on small production, now it is 0% with goals that are 200-300% higher than before. Imagine the quota being 6650 a month and then it jumps to 14,000-18,000 and if you don't hit 50% to goal you don't get 10% of what you wrote. They got greedy. Hence why I'm looking to leave and why I don't care if I'm hurting them by writing business as an independent outside of their business and then leaving.

I'm going to assume for a second the agency is providing you with leads. If that is the case, do you have any idea what it cost to pay for office space, telephone lines, electricity, etc in addition to the cost of generating leads? Not to mention the cost of paying you a salary. What you view as being greedy is likely them evaluating their pay structure and making adjustments to stay viable. It also was likely done to weed out people who aren't producing to the level they want.

If you think you can go out on your own and generate your own leads, you should do that. After being in this business 30+ years, I can tell you the reason most people fail is because they can't consistently talk to enough qualified prospects. And that is the lifeblood of this business.

If you aren't happy in your current situation, you aren't being any good to anyone there, including yourself. It's time for you to move on. And no, you aren't going to receive unemployment unless they terminate you. Even then it would depend on the contract you have with them. Most likely they'll let you just whither on the vine until you just can't take it anymore and just quit.

 

[goillini52]

Captive agents represent a single carrier, selling only that carrier’s insurance products. The carrier pays the captive agent either a salary or commission while also supplying marketing materials, product training, and other resources to help the agent open an agency. Carriers also set strict product-specific sales quotas for their agents.

Independent agents are in business for themselves, so they can partner with as many carriers as they wish. They can also choose to sell any insurance product, including property and casualty, life, and health insurance policies. However, to get and maintain these partnerships, independent agents usually have to meet the carriers’ production minimums.

Captive Agent vs Independent Agent: Fees
Cost is usually a major concern for small business insurance shoppers, so a captive agent versus independent agent fees matter. While neither controls how much a policy costs, they both can charge extra fees for binding and servicing policies, depending on the laws in their states and the agreements they sign with carriers.
may help you Read here the article: Captive Agent vs Independent Agent: Which Is Right for You?

You can also be captive to a FMO and represent multiple carriers.

 

[Newby]

You can also be captive to a FMO and represent multiple carriers.

Yep! His/her description is a common misconception. Being independent or captive has absolutely nothing to do with being able to sell multiple companies.

the fact that the OP mentioned that they have a contract (in their first paragraph) tells you that you are captive. Who would an independent agent have a contract with?