Never Assign Commissions To Agency

[Frank Stastny]

I have a question.......when you get a good contract with someone such as Frank and lets say just for giggles that a year later you want or have to contract with someone else.

-Do you take your commission trail with you?

-Can they go after the clients you acquired and steal them back?

Just want a little clarification on this. See the FMO or group I currently work with (who doesn't do anything with med sups) lets you take your book/clients with you. They will actually try and buy them from you if you leave. As long as you continue to service them, you can keep them.

On a side note.....my 1,000th post.....so I'm heading over to the 1,000th post section lol.

If you were closer I'd buy you a drink or 3 or 4 to celebrate. Boy are you in for a "special treat". haha

No, you do not automatically take your commission level with you. If you are getting a high commission level where you are the new FMO may only offer you a lower percent of commission.

If an agent is foolish enough to give them all of the information on his clients then yes, there is nothing that says they can't try to steal them away from you. If you have done a good job of servicing your clients it will be very difficult for them to do that.

If you haven't assigned your commissions then you are the agent of record and you own all of the business you have written. They will still get their override on the business you write but that is all they will ever get. With the companies I offer contracts with the agent is vested as of day one.

It isn't a matter of anyone "letting you" take your clients with you if you haven't assigned your commission to them, they have no right to them. If they want to buy them then that is a different story.

If you have assigned your commissions to them then they own your clients and you have no right to them.

 

[Norwayguy]

I have a question.......when you get a good contract with someone such as Frank and lets say just for giggles that a year later you want or have to contract with someone else.

-Do you take your commission trail with you?

-Can they go after the clients you acquired and steal them back?

Just want a little clarification on this. See the FMO or group I currently work with (who doesn't do anything with med sups) lets you take your book/clients with you. They will actually try and buy them from you if you leave. As long as you continue to service them, you can keep them.

On a side note.....my 1,000th post.....so I'm heading over to the 1,000th post section lol.

First on the 1000th Post, Congrats...Hope your not to disappointed in the 1000th posts club.

On the issue of Transfering your contract to a new Hierarcy it would depend...Some carriers require you to either get a release (and assuming they won't release you), might require so many months of non-production. I was just checking with the contracting dept of one of my Carriers and if I can't get a release my only option would be to resign my appointment and go 90 days and then apply for appointment again...I could then have my clients sign a change of agent or change of servicing form to get my clients back...

If you are having to ask these types of questions I recommend after speaking with contracting to be connected with commissions...In the case of this Carrier even though I would have the clients sign a change of Agent form and would be able to service the clients the commissions on those policies would remain with the original writing number....which if you remember I would be required to resign that appointment so the commissions would roll up to the next person.

Anyone familiar with Topgunproducers will be familiar with this

Begin with the end in mind!

However most of us never take the time to ask these questions before signing on the dotted line.

I do want to say most of the FMOs I have dealt with have been reasonable, but there are some scumbags out there....

My advice beyond everything else we have discussed is to never move all your contracts over to a new FMO right away...I typically will move one or two throwaway contracts ie carriers I have never contracted with before or rarely use. Its amazing how you can tell who you want to deal with pretty quickly..Some FMOs stop returning calls etc as soon as you sign the contracting paperwork, while others continue to provide the same level of contact as while they where trying to recruit you.

 

[Frank Stastny]

First on the 1000th Post, Congrats...Hope your not to disappointed in the 1000th posts club.

On the issue of Transfering your contract to a new Hierarcy it would depend...Some carriers require you to either get a release (and assuming they won't release you), might require so many months of non-production. I was just checking with the contracting dept of one of my Carriers and if I can't get a release my only option would be to resign my appointment and go 90 days and then apply for appointment again...I could then have my clients sign a change of agent or change of servicing form to get my clients back...

If an agent hasn't assigned their commissions then there is no need to have the client sign a change of agent or change of servicing form, at least not with Med Supps. If the agent hasn't assigned their commissions then the agent owns that client and will continue getting commissions and renewals directly from the insurance company.

If an agent can't get a release there are companies that will require the agent not submit any business for twelve months before the agent can move the contract himself without getting a signature of approval from his FMO. However, most only require six months of not submitting business for the agent to move the contract without "approval".

Med Supps are the only kind of insurance I offer contracts for and the only ones I have any expertise in. Other kinds of insurance may be different.

 

[TPAAgent]

Hello I'm trying to understand this.

Someday I'd like to have my own agency but not today. Today I want to learn the business, sell, make money.

I assume I have to go work for an agency - if the agency doesn't pay me we both get paid direct?

If I'm working for an agency is the book of business mine to keep?

Best advice I could give anyone getting "into the business" is to keep your day job and work it part time, go see clients after you get off from work around 5 or so- and see a couple people on saturdays- saturdays are the best day to sell-... clients are relaxed and they're more open to buy (from my experience)- plus traffic is light and ya can get around a little faster

You should have no problem selling 3 policies a week part time- that should add another 3k or so of earned monthly income until you feel comfortable telling your boss to go _-himself

I learned from one of the best insurance guys in the state of Florida who has recently passed on- and a couple things he told me I've used as a rule and have made a good living doing it

1) Find 1 product, know it and sell the sh*t outta it

And the best advice he ever gave me no truer words have ever been spoken

2) "The best lead you'll ever get... Is the one you MANUFACTURE yourself...."

 

[houcoogster]

As TPA said:
2) "The best lead you'll ever get... Is the one you MANUFACTURE yourself...."


A wise man once told me,
" A man who cuts his own wood is twice warmed."

 

[WinoBlues]

As TPA said:
2) "The best lead you'll ever get... Is the one you MANUFACTURE yourself...."


A wise man once told me,
" A man who cuts his own wood is twice warmed."

Or a guy that stokes his own fire saves a lot of money.

 

[TPAAgent]

You can get by with internet leads- I buy the $3 impaired risk ones- but I keep them within 20 miles of my house- I roughly get 2-3 per week.. It's extra income and have sold some, so its not a big waste of money.. It's actually been pretty good and well worth the 10 bucks I spend a week on those things

I wouldnt buy "regular leads" if they were $8 a piece

$15 for a life lead? "Yeah sure NetQuotes- I'm all over that"

My bread and butter is old school- Love small businesses

I can gather 30-50 business cards in less than 4 hours of prospecing

Look for the single/partner business owners- theres millions of them, next time you drive down the road.. look

They're all over the place

You are passing by money

 

[hermans25]

Yes i wanna say thanks to TPAAgent because he told very nice and helpful information.

 

[dwsherwood]

TPAAgent,

What part of Florida are you in?

I just moved around Orlando and I am just getting back full time into the Insurance Business!

Thanks, Dan

 

[Chazm]

TPAAgent,

What part of Florida are you in?

I just moved around Orlando and I am just getting back full time into the Insurance Business!

Thanks, Dan

I heard all the seniors moved out of Orlando. Sorry for the tragic news