Anybody Ever Know Some One Who....

theguy

Expert
35
pilfering orphans from ex employer

total hypothetical.

lets say an agent signs onto being a "captive/career" agent with an insurance carrier. After sometime, agent produces reasonably and moderately for said company and gains access to an orphan database.

Agents leaves said company. What would be the LEGAL ramifications of said agent contacting orphans of the company with full disclosure that said agent no longer represents said company. And making sales calls saying something to the effect of "I would like to do an insurance review you(client), since you no longer have an agent of record with said insurance company."


I have been a fly on the wall on these forums for some time now, never really felt the need to post anything since most everything has been covered. I really respect a lot of the advice that has been given by many of you. However, I am not looking for eithcal or moral opions/judgement. (eventhough I'm sure I'll get it anyway)

Strictly, I knew a guy who did that and he got sued to the gills, or something of the like.

Do you think one agent is going to be able to make enough waves to warrant any legal action period?
 
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total hypothetical.

lets say an agent signs onto being a "captive/career" agent with an insurance carrier. After sometime, agent produces reasonably and moderately for said company and gains access to an orphan database.

Agents leaves said company. What would be the LEGAL ramifications of said agent contacting orphans of the company with full disclosure that said agent no longer represents said company. And making sales calls saying something to the effect of "I would like to do an insurance review you(client), since you no longer have an agent of record with said insurance company."


I have been a fly on the wall on these forums for some time now, never really felt the need to post anything since most everything has been covered. I really respect a lot of the advice that has been given by many of you. However, I am not looking for eithcal or moral opions/judgement. (eventhough I'm sure I'll get it anyway)

Strictly, I knew a guy who did that and he got sued to the gills, or something of the like.

Do you think one agent is going to be able to make enough waves to warrant any legal action period?


What a stupid thread! You answered you own question in your post.

Just for the heck of it, why don't you do it and see what happens?:)
 
"What a stupid thread! You answered you own question in your post.

Just for the heck of it, why don't you do it and see what happens?"


While it may be stupid to you, I in fact don't know of anyone's experience with this issue, and considering the vast number of agents on this forum I figured that there are numerous people on here who have left a company and have faced this same dilemma.

Obviously I'm fully aware that litigation is a possibility, but this does not "answer my own question" of wanting to hear experience of others on this forum. If I thought there was a guarantee that it wouldn't happen I would not have posted at all. Just trying to gauge that likelyhood. That is all.

If you have nothing to add to a conversaiton, why interject? If you are standing in line at starbucks and the couple ahead of you is having a "stupid" conversation, would you jump in and state that fact?

BTW, much respect Mr. goillini certainly don't want to start any kind of arguement in this post.
 
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"What a stupid thread! You answered you own question in your post.

Just for the heck of it, why don't you do it and see what happens?"


While it may be stupid to you, I in fact don't know of anyone's experience with this issue, and considering the vast number of agents on this forum I figured that there are numerous people on here who have left a company and have faced this same dilemma.

Obviously I'm fully aware that litigation is a possibility, but this does not "answer my own question" of wanting to here experience of others on this forum. If I thought there was a guarantee that it wouldn't happen I would not have posted at all. Just trying to gauge that likelyhood. That is all.

If you have nothing to add to a conversaiton, why interject? If you are standing in line at starbucks and the couple ahead of you is having a "stupid" conversation, would you jump in and state that fact?


This is an open Forum...you don't get to choose who responds. That's nothing like eaves dropping on a conversation. Bad analogy!

You did answer your own question when you said you knew a guy who did this and he got sued to the gills. Go read your post. I even bolded that part for you.
 
This is an open Forum...you don't get to choose who responds. That's nothing like eaves dropping on a conversation. Bad analogy!

You did answer your own question when you said you knew a guy who did this and he got sued to the gills. Go read your post. I even bolded that part for you.

Ah, I see......I believe you misunderstood what I was trying to say in the second part. Simply, that I wasn't looking for ethical comments, but comments more along the lines of "I knew a guy who did this and got sued...."

As I said in my second post, I have no experience with this issue and don't know anyone who has. My mistake for not being more clear.

____________________________________________________________

And to my point, The analogy is sound.

Eavesdropping is to reading a post and not commenting.

as

Interjecting into a conversation is to commenting in a thread..........just saying
 
Please forgive my snarky colleagues. They have no idea what you are talking about and resort to jabs in order to increase their post count.

To answer your question: It depends on the company. I have no direct experience with this, but I do know people that have. Some companies have very strict rules when it comes to poaching and will go after you with all of the might of their company. But most don't. Usually the agent that is poaching is found out by another agent that can't keep his book together, gets butt hurt and tattles. You get a cease and desist letter and go along with your life.

Unless you are moving big blocks of business at a time, it's usually not noticeable by the giant conglomerate, especially if they are truly orphans-not with any agent attached. But you would have no idea if that's the case. If they are assigned to an agent and their policy count goes down, you will be found out and sent a stern letter.

The only time I have seen attorney's get involved is when a book is sold to another agent and they have reason to believe the original agent was poaching. In this case, the original agent kept immaculate records and could prove she was not poaching- the clients tracked her down.

I hope this gives you some idea of reality. The bottom line is: don't steal from your previous agency if it's in your contract. Keep immaculate records if your loyal clients find you.
 
Please forgive my snarky colleagues. They have no idea what you are talking about and resort to jabs in order to increase their post count.

To answer your question: It depends on the company. I have no direct experience with this, but I do know people that have. Some companies have very strict rules when it comes to poaching and will go after you with all of the might of their company. But most don't. Usually the agent that is poaching is found out by another agent that can't keep his book together, gets butt hurt and tattles. You get a cease and desist letter and go along with your life.

Unless you are moving big blocks of business at a time, it's usually not noticeable by the giant conglomerate, especially if they are truly orphans-not with any agent attached. But you would have no idea if that's the case. If they are assigned to an agent and their policy count goes down, you will be found out and sent a stern letter.

The only time I have seen attorney's get involved is when a book is sold to another agent and they have reason to believe the original agent was poaching. In this case, the original agent kept immaculate records and could prove she was not poaching- the clients tracked her down.

I hope this gives you some idea of reality. The bottom line is: don't steal from your previous agency if it's in your contract. Keep immaculate records if your loyal clients find you.

If they were truly orphans and its not taking money off of anyone's table then I believe the eithcal question is a moot point.

I believe I found a thread that addresses this. "non-sillicitation vs. Non-compete"
 
If they were truly orphans and its not taking money off of anyone's table then I believe the eithcal question is a moot point. I believe I found a thread that addresses this. "non-sillicitation vs. Non-compete"

So you would be stealing the companies current clients...how is that not taking money off of someone's table. How do you think a company pays its employees.

But you've already made up your mind, you came here for validation.

Fwiw, you will almost certainly be violating a non-solicitation agreement if you signed one with your captive company. If you didn't sign one then it's fair game.
 
If they were truly orphans and its not taking money off of anyone's table then I believe the eithcal question is a moot point.

I believe I found a thread that addresses this. "non-sillicitation vs. Non-compete"

A list of orphans is company property. You wouldn't have to worry about just civil court, but potentially criminal as well. We're not just talking about your clients, but clients of the company that you never interacted with.
 
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