Never Assign Commissions To Agency

[edward67]

Thank you for this thread. You guys saved my bacon with this info!

 

[Guest]

its a year in a half old thread.........be careful with old info, things change

 

[irisagent]

Just starting out. I am contracted with an FMO for national Ins. co's that came recommended. VERY concerned about FMO I've just signed on with so I can contract with companies in NY. This particular FMO said that a particular Ins Co won't pay direct. Is this true? Thinking about terminating until further investigation. Help!

 

[rousemark]

Just starting out. I am contracted with an FMO for national Ins. co's that came recommended. VERY concerned about FMO I've just signed on with so I can contract with companies in NY. This particular FMO said that a particular Ins Co won't pay direct. Is this true? Thinking about terminating until further investigation. Help!

How can anyone tell you if it is true or not when you don't ID the company? Some companies operate Ike that but most don't.

 

[Tahoe Ray]

Just starting out. I am contracted with an FMO for national Ins. co's that came recommended. VERY concerned about FMO I've just signed on with so I can contract with companies in NY. This particular FMO said that a particular Ins Co won't pay direct. Is this true? Thinking about terminating until further investigation. Help!

I'm not sure what lines you're writing but for life carriers in NY, they definitely pay direct.

NY street comp is pretty low however, and a big chuck goes to the GA. Most NY general agents will pay their agents some of this excess to the agent, depending on the carrier.

So if you're writing NY business, you should get at least SOME of your comp direct from the carrier.

 

[irisagent]

Okay, the insurance company is Emblem. The FMO is telling me that Emblem does not pay direct to the agent. There are two more that I want to contract with: Affinity and AgeWell that do pay direct, all in NY area. What the hay? Should I have a lawyer look at these contracts. I would rather pay small now, that more later...
Thanks

 

[FLM2]

Okay, the insurance company is Emblem. The FMO is telling me that Emblem does not pay direct to the agent. There are two more that I want to contract with: Affinity and AgeWell that do pay direct, all in NY area. What the hay? Should I have a lawyer look at these contracts. I would rather pay small now, that more later...
Thanks

There are some health insurance companies that only pay FMOs, particularly the small regional carriers.

Before you pay an attorney to read the contract and ask all kinds of questions, why didn't you call Emblem and ask them?

I looked at the Emblem website, it appears that they will contract directly with brokers: Working with Us

If this thread teaches you one thing it is to do your own research, you could have checked out Emblem in less than 60 seconds by going to the website and then calling broker services.

 

[1963]

"These threads continue to remind me why I'm independent".
AMEN, Larry Tew!!!

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Three mos. late, but better than never lol!!!

 

[Sky]

Okay, the insurance company is Emblem. The FMO is telling me that Emblem does not pay direct to the agent. There are two more that I want to contract with: Affinity and AgeWell that do pay direct, all in NY area. What the hay? Should I have a lawyer look at these contracts. I would rather pay small now, that more later...
Thanks

Have you called the Insurance Companies direct and asked if they would pay you direct? Also, if you can contract direct with the company, do it, Skip FMO's whenever possible.

 

[jdeasy]

Have you called the Insurance Companies direct and asked if they would pay you direct? Also, if you can contract direct with the company, do it, Skip FMO's whenever possible.

That's not necessarily good advice. Many times one can get higher contracts through an IMO/FMO than direct.

Then you have the support and training of an IMO/FMO.

It might be in agent's best interest to go direct and then it might not be.