Non-Compete Agreement | Non-Captive vs. Captive IMO

[AlexG]

First, I echo everything @Tahoe Ray said.

What I don't know is if you're trying to sell your non-captive products to the leads being generated in the captive situation? Not only could that be a contract breach, but I'd find that unethical in a business context. (It's different if the captive IMO doesn't have appropriate products you're trying to solve for.)

In my view, what you may really have... is a marketing problem. If you have a way to prospect outside of the captive lead system, then you have no problem and you can easily leave. It's when you're co-mingling your loyalties with the group providing you with leads that you may be having issues.

Thank you for your response.
Yes, I absolutely had a marketing problem but I'm working on developing those skills.
To clarify, there would be no co-mingling as I would not "poach" the captive IMOs clients,I'd be generating my own.
More specifically, my post was based around the context of marketing + selling another line of insurance products that the captive IMO does not offer.

 

[AlexG]

If the captive IMO doesn't allow that, then you're breaching the contract.

If they do, then you're good.

The corp has to have a sub-licensee which is public info in most states. It's pretty easy for a captive agency to task an employee once a month to run license checks to make sure you're not appointed anywhere else.

I wouldn't do this if I were you.

Thank you for your response!

 

[Tahoe Ray]

I'm wondering if I can sell annuities (from my own marketing efforts/leads - NOT the captive IMOs leads or clients) without having to send referrals to someone else?

What does your contract say?

You should be asking your employer these questions. If they say no, that's it. If you try to do it anyway, you more than likely will get caught because your employer can see your appointments.

If they say yes, then go for it.

 

[AlexG]

What does your contract say?

You should be asking your employer these questions. If they say no, that's it. If you try to do it anyway, you more than likely will get caught because your employer can see your appointments.

If they say yes, then go for it.

The opportunity is 1099 so technically there is no employer but I will look more closely into it. Thank you

 

[WinoBlues]

The opportunity is 1099 so technically there is no employer but I will look more closely into it. Thank you

1099 v employer - in the whole agency and IMO set up that line can become blurred. Usually in the upline's favor.

Why are you captive or " semi Captive"? Seems to me the easiest route would be to become fully independent. Captive or Independent, both have a cost to you.

 

[Tahoe Ray]

1099 v employer - in the whole agency and IMO set up that line can become blurred. Usually in the upline's favor.

Why are you captive or " semi Captive"? Seems to me the easiest route would be to become fully independent. Captive or Independent, both have a cost to you.

I was thinking the same thing.

How can you be 1099 and be captive?

 

[PrivClientSG]

Doesn't matter if 1099 or W-2. The contract will supercede everything else, unless you want to get yourself caught up in a major litigation which will no doubt cost you six-digits. That said, even if you are captive, you can be a "statutory employee" -- which completely benefits the "company" and not you -- and guess what, you get a W-2! It is up to the company/issuer. I've seen some issue W-2's, and some 1099's. It comes down to, guess what? The contract!