MoO Captive Agent Question!!!

[lifeagent13]

I have a friend who is a 'career agent' with MoO. He claims he can write with any company outside of MoO at street level (like an independent broker) and MoO receives no override on the policy. I am trying to understand why MoO would subsidize a lead/pay salaries to management when they can 'freely' write with other companies. Can anyone shed any light on this?

 

[DHK]

http://www.insurance-forums.net/for...tual-omaha-career-agent-resources-t41669.html

Semi-Independent agent:
- They have an insurance brokerage firm: Broker’s Clearing House.
- Through them, you can write fixed indexed annuities and index universal life! (Don't recall anything about whole life though.)
- And yes, they have a broker/dealer as well - yet, you can write fixed indexed business through their insurance broker!
- Some major carriers: American National, Aviva, Assurity, American General and others. (A couple of these carriers are teamed with other service providers for premium finance deals specific for business owners!)
- Yes, your first obligation is to write business for your primary company.

 

[lifeagent13]

He was told for additional products to either contract directly with the other company or to solicit IMOs that might take him. It was not just brokers clearing house...

 

[DHK]

What he is told... and what is written in an agent's contract... are two very different things. And if it comes up... it'll be on him for not having read his contract.

Now, it COULD be that the sales manager is new... and he misunderstood what he was told about new agent contracting with other carriers.

 

[kamkaran]

That's absolutely good question and I also need a help!!!

 

[VolAgent]

I have been through this exact same situation with another career shop.

Per the HO, yes you can go get outside contracts and thus no override for MOO or your manager.

However, particularly if securities licensed, that doesn't mean your manager will agree. I was not even allowed to get appointments through the company sponsored brokerage.

The key to all this is, how much have you done for me lately? If your friend is putting a lot of MOO business on the books, making the manager look good and earning the manager override, no one cares. If your friend is struggling or thinks he is going to enjoy a free or subsidized office while writing away, he has another thing coming.

 

[lifeagent13]

I guess this is just proof that being a captive agent really doesn't work, MoO makes so much money off brokers they just let their captive agents run wild [kingdom]. Lol