Is this Kosher to Do?

[Kelly Carolan]

I'm new to this field. I found an FMO that I really like that allows me to market in all states I'm licensed in. However, I also found a local agency that is in 5 states, most of which I am not in. I really like the agency and people who own it and feel I could learn a lot with them. I'm just wishing they were in the states I have a bigger network in.

Is it kosher to contract with an FMO and agency at the same time? Work with the agency for the 5 states and use the FMO for the other states I want?

 

[sman]

Would you be an employee of the agency? If so, it will depend on whether or not they allow it. If you are just contracting with them and not an employee, then there should be no issues.

 

[Matthew King]

Kelly,

Sometimes FMO's and Agencies will ask that you put all your contracts with them to participate in certain programs they offer.

However, it is normal not to put "all your eggs in one basket". It really deals with what you are okay with and what the FMO/Agency is okay with. You should be able to honestly state what your intentions are and the FMO and agency should advise you if it's okay or not to them.

If they get really offensive and push you. Then you should ask are they really in it for your success? If they don't support you during this decision in the beginning of your business then there's a good chance they won't support you later either.

 

[Newby]

I'm new to this field. I found an FMO that I really like that allows me to market in all states I'm licensed in. However, I also found a local agency that is in 5 states, most of which I am not in. I really like the agency and people who own it and feel I could learn a lot with them. I'm just wishing they were in the states I have a bigger network in. Is it kosher to contract with an FMO and agency at the same time? Work with the agency for the 5 states and use the FMO for the other states I want?

In most states you can sell even if your upline is not licensed in those states. But in around 15-states if you sell you will not be paid unless everyone in your upline is licensed there. You will definitely want to verify that you are not going to be restricted from selling in states that you want to sell in due to that.

If you look at the Foresters paper contracting forms, they list the states with those requirements.

 

[yogooglethis]

I'm new to this field. I found an FMO that I really like that allows me to market in all states I'm licensed in. However, I also found a local agency that is in 5 states, most of which I am not in. I really like the agency and people who own it and feel I could learn a lot with them. I'm just wishing they were in the states I have a bigger network in.

Is it kosher to contract with an FMO and agency at the same time? Work with the agency for the 5 states and use the FMO for the other states I want?

As long as you are contracted with completely different carriers between the 2 different fmo's should be no problem however I bet that these fmos have some of the big carriers in common such as uhc,humana,aetna etc.

BTW whether the FMO is licenced in other states has nothing to do with your needing to get non residence license in those states to sell and if you seriously think you will be selling MA over the phone just stick with the state with highest MA penetrations ie. Fl.More than enough business there and you will only have about 100 plans to learn vs. 300 or plans selling in 10 states.