Captive Agent Needing Independent Advice

[rtaylor]

I am a new member so if this has been discussed please have mercy on me. I was wondering if any captive agents had ever opened an independent agency in a spouse's name. I send so many referrals to other agencies because we no longer have any products that are competitive and would like to get paid. I am trying to get around the non compete.

 

[Guest]

Happens all the time, but Farmers will term you for doing this,

 

[b61mack]

Use the search function, and look up Smart Choice. I believe their name goes on the policy, not yours. That is how some captives write deals, they would have lost. The're are a few clusters like that. You will read about this subject matter, in the forum.

 

[AgencyEquity]

I am a new member so if this has been discussed please have mercy on me. I was wondering if any captive agents had ever opened an independent agency in a spouse's name. I send so many referrals to other agencies because we no longer have any products that are competitive and would like to get paid. I am trying to get around the non compete.

I have seen this happen a few times, in the cases I have seen, it has come back to bite them as it caught up with the captive insurance carrier which soured the relationship and ended up leading to termination, at least in one case. The right way to do this is to plan to start an Independent Agency and cut your ties. I always recommend to plan at least 6 months in advance, if not a year in advance.

 

[P&CGuru]

read your contract with the Captive carefully. Some captives would allow a spouse to own an IA as long as you are not referring business to the IA. There is always a loophole but you want to make sure you know what the restrictions are and you can usually work your way around.

 

[joshb]

This is common in Florida with State Farm, and previously nationwide (until Nationwide did away with the captive program altogether). Never seen any agent get in trouble.