Yet Another Bad Contract - Watch What You Sign

[Norwayguy]

Thanks so much! We all need to have an Attorney review our contracts before signing. I had a horrible experience w/ an small FMO here in NYC - American Capital Health. They are now not paying my renewal commissions and I am forced to take them to Small Claims Court. Silver Lining? 1) I learned a valuable lesson. 2) The process for Small Claims Court is easy to navigate even in NYC!

Thanks again

And was that lesson NOT to assign your commissions?

 

[moonlightandmargaritas]

We all need to have an Attorney review our contracts before signing.

With a reasonable level of intelligence, and the ability to read, a lawyer isn't really needed.

 

[Josh]

With a reasonable level of intelligence, and the ability to read, a lawyer isn't really needed.

Couldn't agree more. There isn't anything overtly confusing air must of these clauses. Hell, even Rick figured it out.

 

[jdeasy]

Couldn't agree more. There isn't anything overtly confusing air must of these clauses. Hell, even Rick figured it out.

I agree with both you and paul to a point. But, some contracts are deliberately written in legalese that would keep the lay person from understanding.

For example, the LH wording that they will keep your renewals if they fall under $250/mo. That is so easily read that they just won't cut a check for less than $250. Any reasonable person reads that to belive that if the renewals fall to $240, for example, that while they don't paid that month they would get paid $480, {or whatever it is as long as the tow months together put it over $250}.

That is not the case. It's gone forever. I had a attorney look at it after the fact and he even had a had time coming to the conclusion that LH interprets. Even to the point of believing that it could be challenged in court. No one has challenged it yet because it would cost you more to challenge than you would recover if you won.

Parker and Asses also have deliberately misleading contracts.

 

[Justin Bilyj]

What ever happened to insuranceexec? He used to be on here a lot!

 

[JustinSane]

I like my 123% Assurity.......no reason to assign commissions anyways, unless someone else is giving you free leads and office space, etc.

 

[Josh]

I like my 123% Assurity.......no reason to assign commissions anyways, unless someone else is giving you free leads and office space, etc.

No reason to assign ever. Direct pay from the carrier is the only way to fly.

 

[scagnt83]

Al - in my time as a recruiter, I never had an agent of mine sign a document like this. I did have an Independent Agent/Agency Agreement, but all it stated was that:

1. Your contract was being signed for a specific compensation level, and I wouldn't change it without your explicit permission. If the insurance carrier changes their comp schedules, though, I can't do anything about that.

2. You were responsible for your own chargebacks. If you didn't pay one and it rolled up to me, I could initiate collections efforts and/or Vector you, and I did reserve the right to apply future commissions from the carrier you had a chargeback with to paying back that chargeback. That last provision was fairly meaningless, as most carriers will do that themselves.

3. I didn't pay your taxes, your licensing fees, or your E&O.

4. You were an independent contractor - if you did something dumb and got sued, you agreed not to blame it on us. In return, if we did something dumb and got ourselves sued, we wouldn't blame it on you (for instance, misrepresenting a product to you that you went and misrepresented to a client - that would have been my fault, I couldn't push the blame off onto you).

5. The agreement could be terminated immediately, with a full release from all carriers (subject to the payback of any outstanding chargebacks).

I've never had an agent sign anything regarding non-competition or non-solicitation, and if I was ever dragged kicking and screaming back into recruiting, I never would. Personally, I think the agreement I used protected me as completely as a recruiter can reasonably expect to be protected.

(Hello everyone! Why, yes, I do still read things posted here. Just not posting quite as much myself these days.)

I contracted with AG through Nick/NGF.

The contract I signed was in line with his statement above from what I remember.


They seemed good at first but I quickly learned that Nick was the only thing good about them!

They started going through lots of changes too. I started getting emails from them, but it was through another outfit who became affiliated with them or something. Thats when I started getting about 20 emails a week from them about all kinds of bs. They quickly went on my spam list after that.

And after speaking to one of their big wigs about a large case I had, I realized that they just pimped their "preferred" carriers.
I asked about a specific company, and was given info on two completely different companies that were "so much better than what I asked about".... piss poor imo

 

[scagnt83]

I reviewed my old NGF contract. Nick was correct, there was no clause in it as Rick says the new contract now has.

I would stay away from them these days due to the wording of the new contract.

 

[Robin Alexander]

And was that lesson NOT to assign your commissions?

Excuse me? Please reiterate your reply in a manner that is clear. Is your reply rhetorical or just plain sarcastic? Please clarify your phrase "assign your commissions" and put it in context if you will.

Thank you.