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Old 08-09-2017, 06:40 PM   #1
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State: Maggie113 is an Insurance Agent from California
GA Authority Over Agents GA Authority Over Agents
Being years in. What is the worst a GA can do to an agent if they desire to be independent (and cut them out)? The contract reads they can do what they want and have authority over everything earned, put together, etc. They have the ability to sue if you recruit or attempt to cancel policies. Nothing about assets. Just records.

Post DOL there seems to be a beginning to and end to abusive behavior and tactics.

Am I right?
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Old 08-09-2017, 07:19 PM   #2
DHK
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GA Authority Over Agents Re: GA Authority Over Agents
When I left "Ma Mutual", I had a non-solicit agreement for 2 years:
- Not to replace insurance contracts previously sold.
- Not to recruit agents of the agency to anything else.

I would look at your contract as though you worked FOR the GA, and the GA just happens to represent the insurance company. The GA is the business owner (in that particular "Ma Mutual") and has the right to protect his business as we would if we were the GA.

In short - if you leave him alone, he'll leave you alone. But if you violate that, he can send a cease and desist letter and/or sue you. Also, if you're securities licensed, your U-5 could be affected.

Regarding earnings... just read your contract and assume that the GA will abide by the contract for earnings... but don't assume any other perks, such as bonuses, overrides, training subsidies, or anything else. If he violates the contract, you can do what you need to do then.

Regarding records, I would suggest that you have a complete right to a copy of the records of the cases you sold and are agent of record (especially if you're going to have a broker contract), but don't quote me on that. But THEY ALSO need copies/original records to protect their agency/firm/broker-dealer, etc.
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Old 08-09-2017, 08:45 PM   #3
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GA Authority Over Agents Re: GA Authority Over Agents Maggie113 is the thread starter for: GA Authority Over Agents

So this is where I get confused.

What possible leverage do they have? They pay for nothing, charge me for BS expenses, my prospecting contracts have nothing to do with them, pay hardly a dime in expenses (less than 10%) nothing for the office I pay for, they collect ~50% of total commissions and give out only what they have to. The rest goes to the parties for elites.

The GDC brokerage is a ripoff in itself and they're completely incompetent . It seems like the only business they are protecting - is their racket.

What possible cease and decist could they possibly send? They don't own me from working in my best interest as an independent with my own self made initiatives and clients they don't even know about.

I understand the contract review... even though it's not signed and has a check mark as an acceptance (don't get me started in that one).

I can't imagine they'll be happy, I mean they were getting 50% and that goes to less than 20% under the broker contract (factoring the secret expense bonus). If they don't want it - I have standing offers for 10% elsewhere.

Records go ahead and take them. The client will just shine them on anyway...

What am I Missing? Thanks for the help,,,you guys are a lifesaver for guys like us. I mean really? This is a business model that works? I think those days are numbered...
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Old 08-09-2017, 09:31 PM   #4
DHK
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GA Authority Over Agents Re: GA Authority Over Agents
Originally Posted by Maggie113 View Post
This is a business model that works? I think those days are numbered...
As long as they keep recruiting, they'll sell insurance and turn a profit.

Hire 'em in masses,
Teach 'em in classes,
Sell all their family and friends,
and Fire their ***es.


Frankly, I don't understand why people stay at captive agencies as long as they do. (I think that's why they focus on the project 200 - to have an incentive to stay and service their relatives and give some peer pressure to not fail?)

An Employment Scam in the Financial Services Industry > HOME

But for those that can produce... why stay where there is so many limitations and reduced payout? I don't get it. And don't tell me "it's because of the brand" because without the agents, the brand wouldn't exist. I guess the kool-aid really is pretty good.

However, I'm sure that for "super producers" there are higher production payout tiers, but I don't know what they are.
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Old 08-10-2017, 06:22 AM   #5
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somarco on GA Authority Over Agents
 
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GA Authority Over Agents Re: GA Authority Over Agents
Maggie, how long have you worked with this GA? Is this your first venture in the insurance business or have you worked in other agencies before this?
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Old 08-10-2017, 08:03 AM   #6
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GA Authority Over Agents Re: GA Authority Over Agents
Originally Posted by Maggie113 View Post
So this is where I get confused.

What possible leverage do they have? They pay for nothing, charge me for BS expenses, my prospecting contracts have nothing to do with them, pay hardly a dime in expenses (less than 10%) nothing for the office I pay for, they collect ~50% of total commissions and give out only what they have to. The rest goes to the parties for elites.

The GDC brokerage is a ripoff in itself and they're completely incompetent . It seems like the only business they are protecting - is their racket.

What possible cease and decist could they possibly send? They don't own me from working in my best interest as an independent with my own self made initiatives and clients they don't even know about.

I understand the contract review... even though it's not signed and has a check mark as an acceptance (don't get me started in that one).

I can't imagine they'll be happy, I mean they were getting 50% and that goes to less than 20% under the broker contract (factoring the secret expense bonus). If they don't want it - I have standing offers for 10% elsewhere.

Records go ahead and take them. The client will just shine them on anyway...

What am I Missing? Thanks for the help,,,you guys are a lifesaver for guys like us. I mean really? This is a business model that works? I think those days are numbered...
Just start fresh somewhere else and don't go after your old customers and don't try to recruit your old co-workers. There is not much they can do to you if you stay clean.

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