Using an Attorney to Get a Release from a FMO

I got screwed years ago by Applied General Agencies (AGA) when I was first told about the 6 month slavery "clause" in their agreement with UHC. I could have sued and certainly been released but it would take years and I'd have to sue UHC in the process.

I'd win the battle but lose the war. We are all appointed at the "pleasure of the company" and can terminate us for any reason. I'm sure a lawsuit would be reason enough.

There is little you can do when you work with a dishonest FMO.

Rick

That is one of the FMO's that I was looking at. So you were contracted with them with UHC and they were unwilling to provide a release??
 
That is one of the FMO's that I was looking at. So you were contracted with them with UHC and they were unwilling to provide a release??

Not only did Patrick refuse a release, he refused to pay me renewal commissions for other carriers because (again, I didn't know) I had assigned commissions. I strongly suggest you steer clear from them.

When I think of dishonest FMOs, AGA comes to mind.

BTW, he had his attorney contact the owner of this forum years ago because of my posts. I am still waiting for them to tell me what was untrue of anything I wrote.

Rick
 
Has anybody ever used an attorney to help get a release from a fmo that continues to drag their feet despite all good faith efforts? I have reached my limit!

I'm curious after going through this, would you ever contract again without an up front signed open release letter ?

I wonder if a significant amount of agents would only contract with an up front signed open release letter maybe it would become the standard and therefore make the FMO world a better place.

The weak FMO's that add no value would not survive. The ones that lie to get you under contract would vanish.

Just wishful thinking.:)
 
I'm curious after going through this, would you ever contract again without an up front signed open release letter ?

I wonder if a significant amount of agents would only contract with an up front signed open release letter maybe it would become the standard and therefore make the FMO world a better place.

The weak FMO's that add no value would not survive. The ones that lie to get you under contract would vanish.

Just wishful thinking.:)

You're right, it's just wishful thinking. The IMO/FMO's that don't release rely on the agents who don't know any better. That's usually the newbies who have not experienced it before.
 
By the time you spend the money and the time it wouldn't be worth it. Just go 6 months without writing the particular company you're wanting to move and you don't need the former FMO's permission.

Who is the FMO? (Help others here so they won't get hooked up with a group like that).

I understand that Copeland is one of the WORST and will make an agent go 6 months without writing business.
 
UHC is changing their release rules next week. You will be able to continue writing business and the release will be effective 6 months later (similar to Humana) Hope that helps
 
I am looking to get involved in MA soon and am looking to see what IMOs are offering in this space. Any recommendations?

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True for the FE market, but not necessarily for the senior health market. Some agencies, especially captive ones, may get you appointed with most, if not all the players in your area. If you're not released, you're out of business, unless you sell another line of insurance.

Up front releases are not only important in the FE world, but I would say mandatory in the senior health world.

What NSRH said. On stilts.
 
There are two types of contracts when signing on to sell with a carrier: direct and assignment of commissions. It’s important to know the difference. A direct contract acknowledges that you own your business, and that your renewals stay with you even if you leave your upline. With an assignment of commissions contract, your upline can keep your renewals if you leave them. The latter of these contracts can put you in a bind when negotiating with your upline. Direct contracts are the way to go.
 
UHC is changing their release rules next week. You will be able to continue writing business and the release will be effective 6 months later (similar to Humana) Hope that helps

That may be the policy of the carrier, but what if the policy of the FMO does not align with that carrier? I know of an agent who is being held to a 6-month period of not writing business (blackout) by the FMO, which is NOT the policy of the carrier. The FMO actually WANTS the agent to stop writing that MA's business under them so that she can be released after 6 months of blackout (benefitting nobody). Or it could be a period of time to monitor any chargeback debt? Maybe the FMO is gambling that the agent WON'T QUIT and she will be in a permanent period of peonage for life?
By the way, I think that Humana's release time has been shortened? I'm not sure about UHC's?
 
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