Past Broker Forcing to Buy E&O from His Preferred Vendor

[redsquash]

I agree 100% with you now, and have already requested the copy of contract from NB (I signed electronically and didn't have the copy of it). I did Firm element last year, and a few this year.

My Series 6 is good through next year (I passed it in April 2009). I'm looking for a BD who can register me, without me paying anything or paying a little. Can you PM me, if you know any or the one you're registered with?

Currently I'm so worroed about how to get out of this mess of $4k invoice.

Starting from this point forward and I mean RIGHT NOW make a folder in a filing cabinet for your contracts. Second you need to start reading these things. I would contact your old B/D and ask nicely for a copy of your contract there might even be more things in there affecting your ability to sell products. You should review your contract periodically and especially before you decide to resign in the future so that you know what your responsibilties are.

Since you mentioned you purchased E&O that does not cover Securities I hope you are aware of how and when your series 6 will expire...Typically you can not go more than 2 years without being associated with a B/D before you will be required to retest if you want back into the industry...However my understanding is that if you miss Reg Element your Series 6 will expire even before the 2 years are up...You need to do Reg Element 2 years after you first pass your exam and then every 3 years there after.

 

[Norwayguy]

I agree 100% with you now, and have already requested the copy of contract from NB (I signed electronically and didn't have the copy of it). I did Firm element last year, and a few this year.

My Series 6 is good through next year (I passed it in April 2009). I'm looking for a BD who can register me, without me paying anything or paying a little. Can you PM me, if you know any or the one you're registered with?

Currently I'm so worroed about how to get out of this mess of $4k invoice.

Firm Element and Reg Element 2 different things (Reg Element) is a joke in my opion other than you need to do it..Your not going to find a B/D where you pay little to nothing except possibly working for a captive...your probably looking at a $2000/year costs between E&O and all the required fees add to that if you have to be registered as a branch...$4K for E&O for Life/Health and Variable and Mutual Fund business sounds pretty nuts but I guess if you were with a very small firm or a firm thats been hit with a bunch of claims.

I can't help you with the low cost B/D mine would run you about $2,500 per year and since you have no production you wouldn't be looking at a great payout...Seriously if your not going to do enough business you might be better off just letting it drop.

 

[redsquash]

...Seriously if your not going to do enough business you might be better off just letting it drop.

If I let it drop, and if in future I might want to re-activate it - do I get into some complications? Do I have to re-take the test? What is the procedure to re-activate it.

I like your idea of letting it drop - because for the next couple of years (or more) I want to concentrate on life insurance only. My old BD was Axa Advisors LLC. I knew the guy at Axa and I thought of selling life insurance. But he said Axa would contract with me only if I have Series 6. But in the last year and half, I was occupied with some other stuff that I couldn't sell any product.

Its so sad, frustrating and bitter that (it appears) I might have to pay AXA 4k. I'm F'd by AXA because of my own mistake.

 

[VolAgent]

If I let it drop, and if in future I might want to re-activate it - do I get into some complications? Do I have to re-take the test? What is the procedure to re-activate it.

If you let it go, you basically have to get it all over again.

I like your idea of letting it drop - because for the next couple of years (or more) I want to concentrate on life insurance only. My old BD was Axa Advisors LLC. I knew the guy at Axa and I thought of selling life insurance. But he said Axa would contract with me only if I have Series 6. But in the last year and half, I was occupied with some other stuff that I couldn't sell any product.

I got serious about selling life, about couple of months ago - thats when I realized my mistake. Axa would have paid me only 25% commission in First year, and 2.5% in the following 2nd and 3rd years. What a crap............

Its so sad, frustrating and bitter that (it appears) I might have to pay AXA 4k. I'm F'd by AXA because of my own mistake.

You ought to look into MassMutual, Guardian, MetLife, New York Life, Northwestern Mutual and Prudential. They all focus on insurance, and depending on the local office you can easily sell other companies' products when needed. Also, they'll hold you Series 6 for you fairly cheap and let you do variable products and mutual funds.

 

[chickenfarmer]

Wow, the E&O is 4K... per year?

How much is E&O for a P&C + L&H agency? 2M in premium.

2 years licensed, no claims.

 

[newbyagent]

There are ways to commit an E&O error without selling a policy. Also, it is not uncommon to want E&O insurance for a least a year after leaving. I know some medical practices require the doctors to keep malpractice insurance for a year after leaving.




One, it is not a loan. And two, most DOIs could care less about the agents, except to punish them for bad acts.

Also, it is the contract. It is always a good idea to enforce a contract, even when their is no apparent need. It establishes a precedent for following the contract should an issue arise later. If the carrier gets a reputation for not following its contract, a judge may not enforce it in a later lawsuit.

Solid reasoning and advice.

 

[LGilmore]

try symetra. They require that you have E&O to their specs, but let you buy your own and just send them a copy.