Prospective Agent, May Be Fighting Former Agent

DCBailey

New Member
1
I am currently being courted by a well known insurance company with a great reputation for a position in southern Arkansas. The position opened up when an agent took a job with a competing firm in the same town. The company has a non-compete agreement, but I am unsure of the details. I have never worked in insurance before. Is this an issue that should keep me from accepting the position?
 
Highly doubt they could enforce a non compete clause. It's your livelihood. Maybe you mean you can't take your clients with you if you leave.
That's usually common with captive agencies. Thus why many agents learn the ropes and get out quickly before they lose too many clients that took a while to build
 
Non Competes aren't worth the paper they are printed on. Completely unenforceable and frankly not even close to ethical. It's become industry standard these days but everyone knows it's just a game.
 
Non Competes aren't worth the paper they are printed on. Completely unenforceable and frankly not even close to ethical. It's become industry standard these days but everyone knows it's just a game.

No competes are enforceable when you receive a value for it such as selling an agency.
 
Most companies will have any agent sign a non-compete clause. This is very common in most industries where you are building a book of business for a company versus yourself. This eliminates you also from state compliance laws against contestability periods and industry churning. Good luck with your future endeavors!
 
Non Competes aren't worth the paper they are printed on. Completely unenforceable and frankly not even close to ethical. It's become industry standard these days but everyone knows it's just a game.

They may not be enforceable but can be expensive to fight.
 
So you're deal is you get a bunch of orphans? What's the rest of the deal look like? Hard to give advice when we don't know what you're being offered aside from some orphans from the last guy.
 
While non-competes may be tough to enforce, an agreement to not solicit former clients is much more enforceable. If you want to compete in the same industry most courts think you have the right to stay in the same profession, but going after the former agencies clients on the other hand is a much bigger deal.
 
No competes are enforceable when you receive a value for it such as selling an agency.

Absolutely correct. NC/ND's are enforceable so long as "Valuable Consideration" was given. There is good case law that supports them so long as they are enforced in a court of competent jurisdiction.

Keyword being "Competent"......LOL.
 
If Arkansas is a right to work state then as long as you don't contact the firms clients you are good. However, they can contact you.
 
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