Hi. I'm a new agent and was unsure about the fmo release process. I was working with an fmo but they weren't producing very well so I've decided to join a different one. This one was not captive so if I join another non-captive fmo will I need a release from the previous one? They're also not listed as my upline on any carriers. Also I was considering too possibly joining blue cross which is captive. Will I need a release to join them? Do agents need releases from non captive fmos to join captive ones or not? Also is bcbs a good company to sell for or not really. The agency I'm going to be working with also requires e&o. I assumed most companies cover the e&o so is that normal or a red flag?
Fmo Release Questions
- Thread starter Dan452
- Start date
- 2,584
What do you mean "they" weren't producing well ?
Probably. Unless you didn't produce anything, then go by company policy.
Who is listed ?
Are you saying they didn't disclose who is above them ?
- 16,881
Releases have nothing to do with captive. All companies tie you to your up line. You need their permission to transfer away. Most will let you transfer after 6-months of no production but not all.
- Thread starter
- #4
Well the thing is I'm independent with the two carriers I appointed with so my upline isn't. Listed anywhere. I had just signed a contract with the non captive fmo. Now I'm looking to go sell bcbs but it doesn't seem like the best deal.
Btw is working with bcbs even a good deal compared to working with an fmo that works with several carriers. Is it more profitable to go with the multiple carriers over bcbs? New fmo is with bcbs and they provide leads and it's over the phone.
Other fmo works with multiple carriers but we have to go out and get leads at events. Bcbs of course won't pay as much because they're providing leads. So it's literally like appx 150 per app as opposed to lots more with the other carriers. Is this worth it? Or is it better to go out there and get your own leads and really write tons of apps with multiple carriers
- 16,881
One of the truths in this biz is that free leads are always the most expensive leads you will ever get.
You just need to settle somewhere and learn all you can and try not to go broke before you figure it out. You are still thinking like an employee and not a business owner.
Don't sign a bunch of contracts with places that give free leads. You will learn about releases the hard way.
- 924
So true. You might as well go with an FMO that tells you that they will show how you'll be producing $30 million.
From the insurance co. perspective, one reason contracts are locked in for a period of time is that they have too much experience with people jumping from one FMO to another without settling charge backs and other obligations. When it comes down to a dispute between you and an FMO, the FMO will always win.
