Switching FMO or IMO

Pawnature · 10-23-2009, 05:33 PM

If I sign with an FMO or IMO and decide that for whatever reason I want to go elsewhere how hard is it to switch.

CPACINS · 10-23-2009, 09:09 PM

That depends on your contract. Some contracts will limit your ability to write new biz for 6 months. So without knowing what's in your contract, it'll be tough to answer you question.

MedicarePlanSolutions · 10-23-2009, 09:38 PM

It'll also depend on what type of products you were marketing. It'll probably be easier then you think. It can get a little tricky if you want to keep marketing the same products with the same carriers if your current IMO/FMO/GA/whatever doesn't want to give a release for whatever reason, but the new IMO/FMO/GA/whatever should be able to help you with that process.

insuranceexec · 10-23-2009, 09:59 PM

Just make sure to get an up front release. If your marketing group will not give you one; go elsewhere. I hope this helps.

TristanTLC · 10-23-2009, 11:06 PM

Ask for a prenup. Many agencies will give you conditional prenup. Just make sure the conditions are not far fetched. If you have negative balance, your prenup will probably be invalid.

IndyAgentIDTMY · 10-25-2009, 12:47 PM

I think most will grant a release if asked for, but I have encountered and heard of a few Ike Turner type MGA/IMO's.

For me, if an agent approached and asked for a release, I will gladly give it after I ask what we did or did not do for them to want to leave for future reference.

Either way, if they don't want to work with you anymore it makes no sense to prevent them from leaving.

alphawave2k · 10-26-2009, 09:23 AM

Originally Posted by IndyAgentIDTMY

I think most will grant a release if asked for, but I have encountered and heard of a few Ike Turner type MGA/IMO's.

For me, if an agent approached and asked for a release, I will gladly give it after I ask what we did or did not do for them to want to leave for future reference.

Either way, if they don't want to work with you anymore it makes no sense to prevent them from leaving.

The fair and decent thing to do is to release whomever wants out of the contract providing they have lived up to their end of the bargain. However, we all know there are plenty of unscrupulous business people who refuse to release someone, just for the sheer pleasure of inflicting pain or making someone's life miserable. Hence the court thing...I would venture to say that there are probably more IMO, FMO, GA abuse of agents, then vice versa.
Power corrupts, and yes, absolute power corrupts absolutely. Most agents are not in any position to dictate
Alph-red-o

jdeasy · 10-26-2009, 10:56 AM

Some will give a release, some won't. I have tried to get released from Parker and Asses to no avail. I have no debit with them, but, they will not release. Same with RBI. I don't owe them anything, in fact, I get get paid renewals on business writen theu RBI. They still will not release just by request.

When that happens, you just have to forge your own release by not not writing for 6 months or longer depending on the carrier. You will not find this 6 month rule in your contract, so, don't bother looking. It is something that is done as an unholy alliance between companies and the FMO's. Sometimes, if you go with an FMO that has a better relationship with the company, they can get that 6 month waived for you.

With some FMO/IMO types, it can be an easy transition. With most, it is very difficult.

insuranceexec · 10-26-2009, 02:46 PM

This is why you get an up front release in writing in the beginning.

jdeasy · 10-26-2009, 07:24 PM

Originally Posted by insuranceexec

This is why you get an up front release in writing in the beginning.

Agreed. I didn't know to do that when I got with Parker and Asses or RBI. I know that now. I just went thru a training for Welborn Health Care MA plans in Evansville, In. I'm not doing MA plans anymore, but, I was interested in that as a possible parking spot for my Wellcare and Coventry clients that are losing their plans. It's a pretty nice HMO for some. When it came time for contracting, they wanted the commissions assigned to them. I told the guy I wouldn't assign my commissions to anyone anymore and he said he would see if they could make an exception. I then told him that I would also need prenup for a release. He "we don't do that". I told him to forget checking on the assigning commission problem because I wasn't signing anyway without the prenup. We agreed to part company before it ever started. There were 10 other agents there and every one of them signed the deal assigning commissions to Welborn and not getting a release.

I tried to tell them to learn from my errors, but, they have to learn on their own. One of them is another guy that was burned by Parker and Asses. He said he needed the work too bad to complain.