STERLING INVESTORS Replacement Chargeback Letter.

[G.Gordon]

Looks like Dan is nothing more than a politician type guy now. Do anything as long as it puts money in his pocket or someone he's in bed with.

SMS basically did the same thing when I brought up the NR rating of Admiral saying "... look at the 15% increase in less than a year..." If you keep bringing out companies like that you'll lose agents confidence.

"Well they're reinsured by Mutual of Omaha... "

That's all they had to say.

I'm about done with them. I'm just sorry my Mutual of Omaha contract is with them now. Oh well. That's the last contract they'll see my name on.

 

[arnguy]

I hope that "sellout123" reads this thread because you Gordon are addressed as "Dr Gordon." I believe there are several other agents on this forum who have doctorates.

 

[retread]

Yeah.... I just got out my contract with AIMC for SILIC, and under Compensation & Accounting, 1.(d), it says...

"A $250 fee will be charged to Your commission account per occurence, if You initiate a replacement or surrender of an in force Sterling Investors Life Insurance Company policy."​

Now I didn't have a problem with that, thinking it is only right to keep agents from churning, but I never conceived of them acting in this regard under your circumstances. This gives me pause to think. Perhaps I will not sell SILIC any more....

The more I think about this, the more upset I get. It is obvious that I can't sell to anyone who is already on a SILIC Med Sup or else face a $250 chargeback under the terms of my contract. It never occurred to me before.... Here in MO, where people have the right to change policies annually, and rate increases are abounding, I will have to refer anyone covered with SILIC to another agent who doesn't carry them. This is not right. "Hello, may I help you? Yes, I hear your complaint. Rates are going up precipitously... What carrier are you presently with? Sterling Investors? Sorry, I can't help you... call someone else."

Not to mention that I will have to hand off my own SILIC customers who demand a change when increases get too high for them to another agent!

I am going over all my contracts again. All contracts that have terms like this will be cancelled. I have been attempting to go direct on all my products for the last several years. This is just one more reason to dump FMOs.

Right now I am not very happy with SMS... I am sure Dan knows about this clause in AIMCs contract, and just shoved it off on me without a word of warning. I was just about to contact him about picking up another product, but not now.

 

[G.Gordon]

Retread,

Read my earlier post. If you cancel your contract first they can't come after you. If your clients tell them "None of your business" when they call to find out how/why they changed they can't come after you. The burden of proof is on them to prove you initiated the change over. Who's side will your clients be on? The company that increased the premiums or the agent that constantly helps them save money.

 

[retread]

Retread,

Read my earlier post. If you cancel your contract first they can't come after you. If your clients tell them "None of your business" when they call to find out how/why they changed they can't come after you. The burden of proof is on them to prove you initiated the change over. Who's side will your clients be on? The company that increased the premiums or the agent that constantly helps them save money.

There is no point in shooting myself in the foot. If I cancel my contract, I lose my renewals. I'll just let them run out and in the meantime sell other products.

 

[jacobtn]

Is this a friend of yours Gordon?

 

[padthaiforlunch]

I just got/read my contract with them on Friday and I saw this bs. The are competitively priced in Colorado, but I can't see placing any business with them.

I don't know if there's a way to contract with Sterling without uisng AIMC, but now I'll have to go back and make sure Ritter didn't run my Family contract through AIMC.

 

[G.Gordon]

There is no point in shooting myself in the foot. If I cancel my contract, I lose my renewals. I'll just let them run out and in the meantime sell other products.

Nope. The vested commisions keep getting paid if you cancel the contract. The only reason they keep your commission is if they "terminate for cause"... don't let that happen. Beat them to the punch.

When the contract is "canceled" by you per provisions of the contract they can't excercise any other provisions of said contract.

 

[retread]

Nope. The vested commisions keep getting paid if you cancel the contract. The only reason they keep your commission is if they "terminate for cause"... don't let that happen. Beat them to the punch.

When the contract is "canceled" by you per provisions of the contract they can't excercise any other provisions of said contract.

I'll certainly run this by my attorney and see what he says. You may be right. If so, you better believe I will terminate.

BTW... my MOO contract is through SMS/AIMC, too. I am prepared to terminate this one also, even though I don't see any onerous provisions in the contract (at least the one disclosed to me) that I see. Problem is, those pesky NON-DISCLOSED agreements between FMOs is what disgusts me.

 

[G.Gordon]

Good luck getting out of your Mutual of Omaha tie to AIMC. I tried and it was impossible. The only way is go one year without production. That's near impossible in my market. I don't mind MOO being with them. The clause in question is a "Sterling/Admiral" clause and is not in MOO's papers. I've never had issues with MOO, but these rinky dink jokers mentioned do nothing but muddy the waters.