This is my first post in the forum and I need some help. It sounds like this is similar to the Parker issue but with a twist.
I've been involved in the health insurance market in Texas for the past couple of years and finally gained the marketing knowledge and resources to make a run at selling a good amount of medicare supplements via phone.
About 2 months ago I began to speak with a top line marketing agency (FMO) with Mutual of Omaha in my hometown of Austin. Mutual was about to release their United of Omaha offering in Texas and the FMO asked me if I had sold any Mutual of Omaha Medicare supplements in the past 12 months. I hadn't so they said it shouldn't be a problem to contract with them. Here's the issue ...
* Last time I sold a Mutual of Omaha product was about 18 months ago as a special agent through Medicare Supplement Insurance Services (MSIS) which is a mid-level marketer under Agent Distribution Center (ADC).
* The new FMO (Precision Senior Marketing (PSM)) I have been speaking with here in Austin just became an FMO about 5 weeks ago
* I completed the appointment paperwork to receive a new Mutual of Omaha producer # through PSM and about a week later went ahead and started selling the new United of Omaha product with the assumption there were no issues and my licensing would be completed before the applications started coming back.
* I received several United of Omaha applications back this past weekend and checked in with Mutual of Omaha to get my new producer ID. They told me I needed a release from my former FMO.
* After checking into it further I found out that because of the introduction of the new United of Omaha product in Texas that they granted the FMOs an additional 90 days after product launch to keep agents - even if the agent hadn't sold in the past 12 months.
* My issue is that Mutual of Omaha is basically telling me that there is no way I could have known about the additional 90 days. They neither asked nor informed the individual agents of this additional 90 days. They did not tell MSIS who had my special agent contract because they are a mid-level marketer. They acknowlegded that the new FMO Precision Senior Marketing was probably not informed because they're so new.
So, now I am required to get a release from MSIS and ADC. MSIS is fine with it but everyone is telling me that ADC never releases agents - including my rep at ADC and the guys at PSM. I have clients' applications sitting on my desk and I'm feeling really bad about not forwarding them on yet for processing/underwriting.
Because no one I was involved with knew about this 90-day extension and I have new business written under the assumption I was getting a new writing number I am basically being told I am stuck with ADC? I don't necessarily have anything against ADC but don't even know them and would rather work with someone in my hometown.
I thought a contract was a legal agreement and any changes to the agreement had to be expressed or agreed upon prior to the change taking place.
Is this legal? Is this binding? Do I have any recourse? Any thoughts or recommendations?
I've been involved in the health insurance market in Texas for the past couple of years and finally gained the marketing knowledge and resources to make a run at selling a good amount of medicare supplements via phone.
About 2 months ago I began to speak with a top line marketing agency (FMO) with Mutual of Omaha in my hometown of Austin. Mutual was about to release their United of Omaha offering in Texas and the FMO asked me if I had sold any Mutual of Omaha Medicare supplements in the past 12 months. I hadn't so they said it shouldn't be a problem to contract with them. Here's the issue ...
* Last time I sold a Mutual of Omaha product was about 18 months ago as a special agent through Medicare Supplement Insurance Services (MSIS) which is a mid-level marketer under Agent Distribution Center (ADC).
* The new FMO (Precision Senior Marketing (PSM)) I have been speaking with here in Austin just became an FMO about 5 weeks ago
* I completed the appointment paperwork to receive a new Mutual of Omaha producer # through PSM and about a week later went ahead and started selling the new United of Omaha product with the assumption there were no issues and my licensing would be completed before the applications started coming back.
* I received several United of Omaha applications back this past weekend and checked in with Mutual of Omaha to get my new producer ID. They told me I needed a release from my former FMO.
* After checking into it further I found out that because of the introduction of the new United of Omaha product in Texas that they granted the FMOs an additional 90 days after product launch to keep agents - even if the agent hadn't sold in the past 12 months.
* My issue is that Mutual of Omaha is basically telling me that there is no way I could have known about the additional 90 days. They neither asked nor informed the individual agents of this additional 90 days. They did not tell MSIS who had my special agent contract because they are a mid-level marketer. They acknowlegded that the new FMO Precision Senior Marketing was probably not informed because they're so new.
So, now I am required to get a release from MSIS and ADC. MSIS is fine with it but everyone is telling me that ADC never releases agents - including my rep at ADC and the guys at PSM. I have clients' applications sitting on my desk and I'm feeling really bad about not forwarding them on yet for processing/underwriting.
Because no one I was involved with knew about this 90-day extension and I have new business written under the assumption I was getting a new writing number I am basically being told I am stuck with ADC? I don't necessarily have anything against ADC but don't even know them and would rather work with someone in my hometown.
I thought a contract was a legal agreement and any changes to the agreement had to be expressed or agreed upon prior to the change taking place.
Is this legal? Is this binding? Do I have any recourse? Any thoughts or recommendations?
