FMO and Agent Relationship

jm31md · 01-22-2009, 12:17 AM

Hello,

I'm very new to the industry and also new to the forum. I've had my Life license for 3 years via Primerica before leaving them more than a year ago. I used that to what I thought was my advantage and acquired my health license with brighter hopes of entering the health industry. Being a newbie obviously has it's own unique obstacles and I met my first major obstacle in Jan 08. Contracted with an FMO that within a month or so of starting I quickly recognized the lack of communication was present, lack of organization, and lack of direction. So being a "newbie" I thought I could back out of my contract without any major issues since I refused to write any business with them. I tried contracting with another FMO and of course the first FMO refused to release me despite my refusal to write any business. The way they treated me was unlike any other. They treated me as if I committed a crime or a carnal sin. I ended up sitting a whole year out before making any type of transition with the new FMO.

Ok...I think I'm venting or rambling right now.

So back to my question above.....what is the structural relationship between an FMO and New Agent suppose to be? Do FMO's have any responsibility to the new agent at all as it pertains to laying that foundation for competency...via trainings, field appts, etc.?

Thanks and sorry for the ramble.
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Newby · 01-22-2009, 07:36 AM

Originally Posted by jm31md

Hello,

I'm very new to the industry and also new to the forum. I've had my Life license for 3 years via Primerica before leaving them more than a year ago. I used that to what I thought was my advantage and acquired my health license with brighter hopes of entering the health industry. Being a newbie obviously has it's own unique obstacles and I met my first major obstacle in Jan 08. Contracted with an FMO that within a month or so of starting I quickly recognized the lack of communication was present, lack of organization, and lack of direction. So being a "newbie" I thought I could back out of my contract without any major issues since I refused to write any business with them. I tried contracting with another FMO and of course the first FMO refused to release me despite my refusal to write any business. The way they treated me was unlike any other. They treated me as if I committed a crime or a carnal sin. I ended up sitting a whole year out before making any type of transition with the new FMO. Ok...I think I'm venting or rambling right now.

So back to my question above.....what is the structural relationship between an FMO and New Agent suppose to be? Do FMO's have any responsibility to the new agent at all as it pertains to laying that foundation for competency...via trainings, field appts, etc.?

Thanks and sorry for the ramble.
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You establish that in the beginning. Talking about releases is a big issue here on the forum.

I've never really understood why it is such a big issue. There are so many companies to choose from that offer basically the same products just sign up with a different company.

I guess it may be more of a problem with health companies.

I recommend NOT putting all your contracts through the same FMO. That way you are not trapped and you can figure out the good ones from the bad ones.

somarco · 01-22-2009, 07:39 AM

FMO's exist to benefit themselves, not the agent. The contracts are always written in their favor. This is why I never use them or suggest others use them either.

If you want to use another FMO, read the contract all the way through and highlight anything you do not like or understand. Then ask questions, in writing, and get answers, in writing, before proceeding.
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I recommend NOT putting all your contracts through the same FMO.

Great advice.

MedicarePlanSolutions · 01-22-2009, 08:56 AM

Originally Posted by somarco

FMO's exist to benefit themselves, not the agent. The contracts are always written in their favor. This is why I never use them or suggest others use them either.

If you want to use another FMO, read the contract all the way through and highlight anything you do not like or understand. Then ask questions, in writing, and get answers, in writing, before proceeding.
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Great advice.

Not all FMO's are created equal. I strongly suggest going through one FMO on all products, but you need to make sure it's a solid FMO. Most solid FMO's are really a place where experienced agents can get access to products, good commissions (or sometimes great commissions), sometime get advances, sometimes get bonuses, etc. Another advantage to having an FMO is that if you do have a problem with a carrier they care a LOT more about what the FMO thinks than what an individual agent thinks. If you're looking for training and support what you need is a GA and GA's are much more likely to give you a lousy contract that is completely in their favor.

Depending on your contract with them you'll have to either wait it out not producing (maybe 6 months) in order to jump ship OR if you're a LOA agent and assigned the commissions to the FMO then it could be 18 months plus. Feel free to e-mail me with the name of the FMO and what area you're in and I can try to get you hooked up with an organization that'll do right by you. Asking for a release is something they should try to persuade you out of, but not get nasty about it.

Hope this helps.

al3 · 01-22-2009, 11:10 AM

Originally Posted by MedicarePlanSolutions

Feel free to e-mail me with the name of the FMO and what area you're in and I can try to get you hooked up with an organization that'll do right by you.
Hope this helps.

Your advice is good, but on your website there is not one iota of who you are and where you are. I looked on Manta and it seems as if you are in Lakeland, FL or Tampa, FL but doing a "whois" your domain is owned by someone called Senior Resources.

If you want people to trust you, you need to instill trust in them.

Al
Preserve your memories

somarco · 01-22-2009, 11:29 AM

if you do have a problem with a carrier they care a LOT more about what the FMO thinks than what an individual agent thinks.

Nice sound bite, but unless the FMO cares about you as an agent, and most don't unless you are writing a buttload of business, then you are in the same boat..

way out not producing

"Weigh" out makes a better impression.

MedicarePlanSolutions · 01-22-2009, 01:25 PM

Originally Posted by somarco

Nice sound bite, but unless the FMO cares about you as an agent, and most don't unless you are writing a buttload of business, then you are in the same boat.

I don't know what type of FMO's you work with but I'm sad to hear that's been your experience. Most will at least mention the issue to the carrier and they usually at least have a contact that would be able to handle it and make a good faith attempt at fixing it. Usually an agent has a hard time even contacting the right person/department in order to get problems fixed.

somarco · 01-22-2009, 02:16 PM

I have had no problems getting issues resolved through my carrier contacts. Dealing with FMO's in the past is just another layer of incompetence to go through to actually get the problem solved.

Perhaps your operation is different, and if so, then fine. I have worked through several different FMO/IMO in the past have found all of them to have both thumbs up their a$$ and useful as tit's on a boar.

MedicarePlanSolutions · 01-22-2009, 02:38 PM

Originally Posted by al3

Your advice is good, but on your website there is not one iota of who you are and where you are. I looked on Manta and it seems as if you are in Lakeland, FL or Tampa, FL but doing a "whois" your domain is owned by someone called Senior Resources.

If you want people to trust you, you need to instill trust in them.

Al
Preserve your memories

I appreciate the kudos on my advice and thanks for taking the time to visit my website. To answer your first question, I'm not based out of FL. My business is based in NY and I'm currently in the process of incorporating. I'm also still working on upgrading my phone system, potentially using new office space, etc, so when that is done I'll be adding the the new contact info. The website was also intentionally launched ahead of schedule so that the search engines would index the sites by the time I was ready to go fully operational. Posting on here with my URL on my signature has also been a way of helping with SEO.

Hopefully while you were browsing my site you learned that my services are for Medicare Advantage companies. Most of what I do is lease software, outsourced broker managing, competitive intelligence, and sales model consulting. I've previously been doing this on a more informal basis and since it's been growing I'm investing more in marketing it.

If I do help someone get contracted with an FMO or GA all I'll usually get is a thank you. I mostly offer to help agents get pointed in the right direction because I hate to see dishonest FMO's take advantage of inexperienced agents, especially when there are great FMO's and GA's to work with.

insuranceexec · 01-22-2009, 03:02 PM

Welcome to the forum. We are glad to have you here.

jm31md · 01-22-2009, 07:54 PM

Thanks for all the responses. I just feel like I'm always waiting on someone else to do their part so that I can simply go out, hit the pavement and learn along the way. The loop seems to never close. Do I need to wait on the FMO for anything if I'm already certified with certain carriers?

Where can I find other reputable GA's and FMO's?

MedicarePlanSolutions · 01-22-2009, 10:12 PM

Originally Posted by jm31md

Thanks for all the responses. I just feel like I'm always waiting on someone else to do their part so that I can simply go out, hit the pavement and learn along the way. The loop seems to never close. Do I need to wait on the FMO for anything if I'm already certified with certain carriers?

Where can I find other reputable GA's and FMO's?

You need to make sure you have all your contracting in so you can get paid. One of my agents got the bright idea to go out and sell Aetna before he got appointed. He did go through and get all his paperwork in though. Fast forward 7 weeks, he's calling Aetna to see when he'll get paid and here's their response: "You're not going to get paid because you weren't appointed." They are still sticking to their guns about that one. Moral of the story is make sure everything is good to go and you have confirmation from your FMO and/or carriers that you're going to get paid.

Send me a message with what area you're in and what you want from an FMO (like leads, high commissions, lots of support, etc) and I can let you know a few FMO's/GA's I'd recommend. If you're mostly going out on your own and doing your thing odds are you'll be able to get a high commission. If you need leads and support the commission starts to go down a little bit. If the forum wont let you send me a message feel free to just send me one from my website.

moeasadi · 01-23-2009, 12:22 AM

What's the difference between FMO and GA?
I am in Ca. and currently deal with Crump(formerly Bysis) GA. for Life
Insurance.Does anyone has any opinion about them.I keep doubting myself weather I am in the right track or not.Thanks

MedicarePlanSolutions · 01-23-2009, 12:32 AM

Originally Posted by moeasadi

What's the difference between FMO and GA?
I am in Ca. and currently deal with Crump(formerly Bysis) GA. for Life
Insurance.Does anyone has any opinion about them.I keep doubting myself weather I am in the right track or not.Thanks

Sometimes they are used interchangeably, but here is what I think a good explanation.
An FMO has a contract directly with a carrier and will usually contract GA's under them. The GA's will then recruit agents and managing agents. So here is the way the contracts flow:
Carrier~>FMO~>GA~>Agent. Each company/organization seems to have their own way have changing these around but that's the gist of it. FMO's are huge organizations that contract lots of agents (20k) and GA's usually have a contract with the FMO and manage a team of however many brokers they have. Most of the "FMO's" on this forum are just GA's with good contracts.

Does that help?

What's your problem/concern with your GA?

moeasadi · 01-24-2009, 12:19 PM

Originally Posted by MedicarePlanSolutions

Sometimes they are used interchangeably, but here is what I think a good explanation.
An FMO has a contract directly with a carrier and will usually contract GA's under them. The GA's will then recruit agents and managing agents. So here is the way the contracts flow:
Carrier~>FMO~>GA~>Agent. Each company/organization seems to have their own way have changing these around but that's the gist of it. FMO's are huge organizations that contract lots of agents (20k) and GA's usually have a contract with the FMO and manage a team of however many brokers they have. Most of the "FMO's" on this forum are just GA's with good contracts.

Does that help?

What's your problem/concern with your GA?

Thank you It was helpfull.
My concern is that A)I don't want to end up leaving my natural market which is my best clients with a GA/FMO.
B) 100% or best commission available. I am contracted w/ Waddell & Reeds a B/D and they are contracted thru Crump Life services for all products except Variable products which are offered thru Nationwide.Crump pays 93% 1st year commission to W&R. and then they will take a cut that I have not yet figured out.
Does anyone know a GA/FMO that pays 100%?
Any experiences with 3Mark Financial? I found them on web.
Thanks a lot for all the input.

insuranceexec · 01-24-2009, 01:00 PM

Originally Posted by moeasadi

Thank you It was helpfull.
My concern is that A)I don't want to end up leaving my natural market which is my best clients with a GA/FMO.
B) 100% or best commission available. I am contracted w/ Waddell & Reeds a B/D and they are contracted thru Crump Life services for all products except Variable products which are offered thru Nationwide.Crump pays 93% 1st year commission to W&R. and then they will take a cut that I have not yet figured out.
Does anyone know a GA/FMO that pays 100%?
Any experiences with 3Mark Financial? I found them on web.
Thanks a lot for all the input.

Yes! But you will not have access to those contracts by using Waddell & Reed unless you are a super producer. Are you needing a great deal of support?

moeasadi · 01-24-2009, 09:06 PM

Originally Posted by insuranceexec

Yes! But you will not have access to those contracts by using Waddell & Reed unless you are a super producer. Are you needing a great deal of support?

thanks William for responding
I need some support and don't mind paying for it. I am also concerned of loosing my securities licenses, so I want to be contracted with one that offers life ins. & securities or Var. Life.
I am just not sure about Waddell & Reeds and all the negative report I read aboutThem.

hlink20 · 01-30-2009, 01:26 PM

Originally Posted by jm31md

Hello,

I'm very new to the industry and also new to the forum. I've had my Life license for 3 years via Primerica before leaving them more than a year ago. I used that to what I thought was my advantage and acquired my health license with brighter hopes of entering the health industry. Being a newbie obviously has it's own unique obstacles and I met my first major obstacle in Jan 08. Contracted with an FMO that within a month or so of starting I quickly recognized the lack of communication was present, lack of organization, and lack of direction. So being a "newbie" I thought I could back out of my contract without any major issues since I refused to write any business with them. I tried contracting with another FMO and of course the first FMO refused to release me despite my refusal to write any business. The way they treated me was unlike any other. They treated me as if I committed a crime or a carnal sin. I ended up sitting a whole year out before making any type of transition with the new FMO. Ok...I think I'm venting or rambling right now.

So back to my question above.....what is the structural relationship between an FMO and New Agent suppose to be? Do FMO's have any responsibility to the new agent at all as it pertains to laying that foundation for competency...via trainings, field appts, etc.?

Thanks and sorry for the ramble.
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Many carriers require your existing GA/IMO/FMO to release you prior to moving. Many times it comes down to communication, when things got bumpy, what were your conversations with your FMO like? Did you ask for a meeting with the head of the organization? If so, how did it go? In many cases like this, a stalemate occurs between the broker and FMO. In your case the FMO would not release you and you chose not to produce for a year. This is a lose-lose situation, especially for you. The FMO most likely has a multitude of producers, so their production was not really affected. However, you are new into the industry and need to build your block of business. A solution is to request, in writing, for a meeting with the decision maker(s) of your FMO. If they refuse, you have a case to present to the carrier directly. If they take your meeting, then your position is heard and most likely will improve. Either way, this is a win-win for you. Lastly, there are carriers out there like Aetna, that will allow you to be appointed with multiple GA's. This forces the GA/IMO/FMO to earn your business. Good luck!

Amber Scherloz · 09-30-2009, 03:19 AM

Relationship between you and the FMO should be something like a give and take kind. They should take care of you for you are an asset and in return you can provide then with good results as an agent. If there is a problem with the communication and the way they treated you then it should be put to an end. You don't have to feel guilty or something for you know that you have all the good intentions but it just did not work out.

mbscagent · 11-01-2009, 03:44 PM

Im also a newly licensed agent and am wondering the best path. FMO or go directly to the larger companies humana or UHC
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How can i find a good FMO in SC
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Can you recommend a FMO in SC