Using an Attorney to Get a Release from a FMO

[egirl1010]

Maybe talk to the FMOs that you are interested in and ask if they offer that type of help. HST said that they don't play around and the former FMO would HAVE to release. They said they would help, but that was early on and I never put it to the test.

SQ flat out told me that they do not give releases and I would have to wait 6 months. That WAS my bread and butter at the time. I did deep research on the company, talked to an attorney, read court filings, and sent the most direct, threatening, and non-emotional letter that I could. My secret was I cc'd the president, vice president, HR Director, Director of Recruiting, and the Chairman of their Board of Directors. I told them that I would NOT be dropping this and their action is interfering with my ability to earn a living. I used phrases that worked in some of the court documents.

Within two days I had an immediate release for each carrier signed by the Board of Directors. Even my new upline was shocked.

 

[egirl1010]

Funny thing...I keep getting emails from SQ asking me to come back this year for AEP. LOLOL. I am very sure I am just on an email list :-)

 

[CALTCAgent]

Not selling UHC is not an option. It's my top carrier (and my personal favorite) in my area and we're heading into AEP. I saw somewhere else where someone said to term their contract but then I'd lose my renewals. Praying that the future FMO can work something out with SMS. I honestly didn't expect them to push back and don't know why the GA contract thing is different than if I was solo (Agent Level) with a street contract ($?). Evidently if I was not a GA, they would've released me.

They are giving you a line of BS. If you don't want to put them out on the forum and call them out, you are stuck. However if their policy was not to release and they never promised a release you are stuck.

 

[somarco]

Not selling UHC is not an option. It's my top carrier (and my personal favorite) in my area and we're heading into AEP.

Is there a reason why you won't/can't wait until January to leave and simply write other carriers for 6 months?

 

[nocamo33]

1. The carrier in question is my top carrier. I won't not sell them this AEP.
2. The carrier told me that requests to change FMO's for reps at the Agency Level have been permanently suspended. So, they won't honor a change after six months and the only recourse is to have the FMO release me who has already said no.

Can you explain this 6 month policy to me? It's different than what I have been told. I was told that if the FMO refuses to release me, I can request the carrier to release me and it will be honored after 6 months. I didn't know there was a requirement that I not sell that particular carrier.

Like I said, I intend to continue to grow my business with this carrier and am not going to make recommendations to my clients solely based on a bad business relationship with an upline. My brain simply doesn't function like that.

 

[somarco]

Can you explain this 6 month policy to me?

FMO's like Todd King are in a better situation to explain. I think the release varies by carrier, IMO and maybe even state. But I could be wrong.

I can see why some don't want to give you a release. They have probably invested $$ and time in you and want to get something for their effort.

I can also see the side where they want to get rid of you because you (collectively, not personally) are a PITA. Less headache to cut you loose and let you be someone else's problem.

I don't have much use for FMO's and usually go direct. Had a few offer me an extra point or 2 to roll my block but I decided it was too much hassle for an extra $1 - $2 per $100 premium.

I think there is only 1 carrier I am using that is through an IMO/FMO. I might consider transferring that contract if they start me at top of scale with FYC on rollovers . . . but I doubt that will happen.

I know UHC is competitive in some markets but there are many places where they are just ho-hum. So I never found a reason to contract with them.

 

[tikibarrister]

In the past, I had tried to strike out with Duford and his associates 360. That was a F-ing nightmare to get out of! I just had to wait the 6 months of not selling with the carriers with Duford and get harsh with 360 (they also sold me aged leads that were 10 YEARS old!!!)

Really? His website says:

"Release upon request as long as you do not owe chargeback money."

Duford Insurance Group FAQ [Everything You Need To Know]

@Rearden

 

[goillini52]

Then your only way out is to wait the 6 months out and not write any business with them during that time frame. You can always start using other companies in lieu of your present ones. Hopefully you will have the ability to use other companies.

AIMC makes you terminate your contract before the 6 month wait.

 

[Newby]

1. The carrier in question is my top carrier. I won't not sell them this AEP.
2. The carrier told me that requests to change FMO's for reps at the Agency Level have been permanently suspended. So, they won't honor a change after six months and the only recourse is to have the FMO release me who has already said no.

Can you explain this 6 month policy to me? It's different than what I have been told. I was told that if the FMO refuses to release me, I can request the carrier to release me and it will be honored after 6 months. I didn't know there was a requirement that I not sell that particular carrier.

Like I said, I intend to continue to grow my business with this carrier and am not going to make recommendations to my clients solely based on a bad business relationship with an upline. My brain simply doesn't function like that.

You are trapped in your own mind. Why are you married to ANY insurance company? Most agents would term the carrier contract. Write biz for other companies. 6-months later if you still want the first one, pick them back up on your terms.
There is no one insurance company worth losing sleep over or being held hostage over.

 

[Rearden]

Really? His website says:

"Release upon request as long as you do not owe chargeback money."

Duford Insurance Group FAQ [Everything You Need To Know]

@Rearden

Yes, I do release upon request as long as the agent has no chargeback debt payable.

In this agent's case, there is a clear track record of me agreeing to the release via email and submitting the proper paperwork necessary for her to complete it.

Based on my observation of what happened thereafter, it appears there was confusion on a number of different issues including:

• The type of release. We use the industry standard reciprocal release. Her new company did not accept hat release for whatever reason. We worked around it and offered a non-reciprocal release.
• Confusion over the different Aetna divisions (FE vs MA) and needing a release for both (both were offered early on, and the agent only competed the release for the Medicare Advantage side of Aetna).
• We originally told her she would need no requirement for a release for Aetna as she was not appointed at the time of her request. However, she was changed to a "ready to sell" status, thus necessitated the release.

Also, the agent requested a release on Aetna FE side several months later, since that was not originally completed on her end with the MA releases. I informed her she had to have her upline sign off on the release before we sign last (this is industry standard).

Her response was that her employer wouldn't sign the reciprocal release. Since this Aetna FE release request was made several months later, it didn't dawn on me that she was referring to the same organization, otherwise I would have happily modified the agreement to release her without the reciprocal agreement. I actually just emailed her to make the offer as I reviewed the notes and noted where I overlooked that important detail.

Regarding the aged leads, to the best of my knowledge, the agent purchased aged leads that were 36+ months old. 36+ months = Anything 3 years and older. 10+ years falls into that description.

For those reading, I have recruited more than 2,500 agents since 2013 and have a spotless record of releasing agents upon request. There are zero complaints lodged anywhere on the Internet about my dealings with agents because I do what I say I'm going to do.

In this case, once the confusion cleared about about the appointment status of the agent, we rendered the release as quickly as possible. Regarding the final expense release, had it dawned on me that I missed out on the reciprocal release language needing to be removed, I would have granted that immediately and definitely take the blame for that.