LOA to Independent, with a Twist

[letthissinkin]

Hello all,

I have been in the industry for a little over a year now so I am still learning all the ins and outs of life as an independent agent. I started off by partnering with a friend who has been in the life and health insurance industry for about 5 years. He knew the industry and I knew how to start a business. We both retain 50% ownership of the agency and have listed the agency as the General Agent with both of us listed as LOA to the agency. Both of our commissions are paying to the agency. For most of our contracts, he has made the phone calls and put everything in place. When I call regarding information about contracting just about every company requires me to either talk to my partner or have him call the company for me stating that he is in fact the General Agent.

For a variety of reasons, I have decided the partnership is doing more harm than good and am looking to move on while remaining an independent agent on my own. My question is how would I retain rights to residual commissions and/or the client list we have developed together? I have been told being LOA I have essentially no rights, but wouldn't my ownership stake give me some right to the company's assets (i.e. residuals, client lists, etc.)?

I apologize for asking a question so unique to my situation but any advice will be appreciated!

Thanks in advance!

 

[Todd King]

Hello all,

I have been in the industry for a little over a year now so I am still learning all the ins and outs of life as an independent agent. I started off by partnering with a friend who has been in the life and health insurance industry for about 5 years. He knew the industry and I knew how to start a business. We both retain 50% ownership of the agency and have listed the agency as the General Agent with both of us listed as LOA to the agency. Both of our commissions are paying to the agency. For most of our contracts, he has made the phone calls and put everything in place. When I call regarding information about contracting just about every company requires me to either talk to my partner or have him call the company for me stating that he is in fact the General Agent.

For a variety of reasons, I have decided the partnership is doing more harm than good and am looking to move on while remaining an independent agent on my own. My question is how would I retain rights to residual commissions and/or the client list we have developed together? I have been told being LOA I have essentially no rights, but wouldn't my ownership stake give me some right to the company's assets (i.e. residuals, client lists, etc.)?

I apologize for asking a question so unique to my situation but any advice will be appreciated!

Thanks in advance!

Did you incorporate the agency? Do you have Articles of Incorporation or Articles of Organization (LLC) in place? That in itself should spell out what you are entitled to and should spell out the fact that you are 50% owner of any business and renewals that come through the business.