Insurance Agent Forum

[Winter]

A question for you guys and guyettes who are looking at SH captive but independent agent contracts:

Do those contracts have a non-compete clause in them? Suppose you sell with Secure Horizons for a year and then want to stop selling SH and sell Humana, Todays Options, whatever because it is a better price or plan. Is there anything in that contract that precludes you from contacting former SH clients and doing business with them?

Winter

[Cenla Agent]

I haven't seen the SH contract. (BTW better to say exclusive rather than captive since you are indep with anything other than MA).

Typically these kinds of contracts have a clause limiting the noncompete to a certain number of days. I think the one I had with Humana is 90 or 120 days. If you wait too long, you will put yourself out of business for an AEP and most of the OEP if you are switching to enroll them in another plan. Going after new business shouldn't be a problem.

[retread]

There does arise a slight discrepancy between what SH management says in interviews vs what is in the written contract, at least for the ICA (Independant Career Agent). On the one hand, we are told that we are not to sell any competing plans, but the contract only forbids us from flipping SH products. I can see this for the directly employed agents, but they are dancing on thin ice with the use of "Independant Agents" and the word "Career". Their use of this title is only to distinguish this contract from the FMO distribution channel, in my opinion. (Obviously unable to use IMO here)

Also, the ICA contract is up 3/31, and you go back to your former life. It is not a bad contract, really. You get fed leads from a massive marketing campaign, but my problem is, just how many? Their 2008 service area is really small compared to Coventry and Humana here in the KC area. And Coventry is the plan to beat... they da man!

[midwestbroker]

AARP or Secure Horizons I think are testing the waters in KC. They are banking on the AARP name.