Fidelity Life and another "problem" FMO

[GreenSky]

I was looking to contract with Fidelity and the company recommened Oak Tree Financial. In speaking with a rep from Oak Tree, I told him I would require a pre-nup granting a release from their contract. Here's the reply:

Rick,
Thank you for your interest in Oak Tree and the Fidelity Life products. Unfortunately we do not do releases. I know you talked to Fidelity Life and they had mentioned the six months of non production. That is something we would be able to do. However, to offer the release upfront would not be something we would be able to do. Please let me know if you have any questions and if want to move forward with contracting with Fidelity Life.
Best regards,
Andrew Lewandowski
Marketing Associate

Obviously for me, that's a deal breaker. I wrote back telling him it is a dishonest system and I'll look for a better FMO.

For those of you who have Fidelity contracts, any suggestions?

Rick​

 

[Mr. Bill]

No suggestions except.....

Steve Poizner seems to be pretty freaking aggressive.

How about we sick him on this absolutely MORONIC practice in the industry???

 

[bluemarlin08]

I am licensed with Fidelity but never written a case, haven't found a situation that I would recommend them. My broker will release you, why do brokers care, the good ones will let you go if you aren't happy with any carrier, or if not you can always dual license.

 

[Brad Howard]

I'm happy to help Richard. We do a large volume of FLA biz and I do release folks that wish to move along. We also have their electronic app and signature available if you need access to that as well. They also have a good GDB product and soon a nonmed UL. If you have questions feel free to call.

 

[TXINSURANCE]

I dare someone to show me where this 6 month thing, or anything is in writing. I am in a similar situation and considering possible action.

This is slimy and unacceptable and someone needs to start being responsible for their actions and "unwritten" rules.

 

[GreenSky]

This is slimy and unacceptable and someone needs to start being responsible for their actions and "unwritten" rules.

While I can't force anyone else to do this, I absolutely refuse to sign with any marketing organization without a pre-nuptial letter. If every agent required this, these unwritten rules would not exist.

I stand by my comment that any FMO who won't give you this letter is dishonest and not worth working with.

You can sue for a release but this would take more than 6 months. Since this agreement is between the FMO and the carrier, you would be suing the insurance company. You might win the war but will they reappoint? Doubtful.

By the way, I did mention "court" to Secure Horizons and received a phone call from not only their marketing manager, but a couple of attorneys on speaker phone. However, they would not budge and pointed out that if I was released, the FMO could then sue them for breaking a WRITTEN agreement.

Rick

 

[TXINSURANCE]

You will run out of money before 6 months is over...

The fact is I never signed anything stating such agreement I am being held to, and I have NEVER submitted a case with this GA or Insurance company - yet I can't get released for 6 months?

It is the principal that all parties involved have business practices that are completely inappropriate and out of line.

 

[Crabcake Johnny]

Everyone's right - it's slimy and although you might win in court you'd lose in the end.

I'm with GreenSky - I will not sign up to sell another insurance product through any agency without a pre-nup.

 

[J.R.]

If agents continue to allow crap this happen then it will continue to occur. On one hand, I can understand holding somebody to their contract if I'm liable for advances, so here are the choices.

1) Make insurance companies liable for chargebacks and not IMO's, GA's, etc. etc. Insurance companies can pay as-earned like BCBS, Aetna, etc. and agents can continue writing them and reaping in the rewards of being paid out over 12 months on one policy OR offer advances with "credit-worthy" individuals who put up some sort of collateral.

2) Put the 6 month rule in writing! I don't see something like that holding up in court since "agents" don't sign anything relating to the rule. From what I can tell this is something that is done with the larger organizations and on a case by case basis with a GA/MGA, etc. POS.

Having said that, if more people follow Rick's approach and stand up for what they believe in things can change.

 

[Expat]

You will run out of money before 6 months is over...
The fact is I never signed anything stating such agreement I am being held to, and I have NEVER submitted a case with this GA or Insurance company - yet I can't get released for 6 months?
It is the principal that all parties involved have business practices that are completely inappropriate and out of line.

Been there, done that, got the Tee shirt. I think some of these M/F,s will not give a release just out of spite.If they can't have the overrides, nobody can. Best way I know of is to show up at their office and threaten to break their face if they do not release you on the spot. It worked for me. (Besides slavery was supposed to have ended ages ago).