Agla fires all agents

[rousemark]

Were they agents making only commission money or salary PLUS commission?

Once your training is complete and your training allowance ends, you are on commission only. However, the company may give you a book of business to service that pays a service fee.

----------

This thread was featured in the Insurance-Forums newsletter today..

" • Life Insurance Forum: Agla fires all agents
Reaction to news that all but 4 AIG Financial Network offices have been shuttered, meaning layoffs for hundreds or even thousands of career agents."

 

[Ronnie Carter]

Career agency companies take legal action against former employees frequently. They file action with the state insurance department which freezes the license. They file civil suits against the former employee and any broker or company which accepted sales that came as a result of breaking the non-compete agreement. AIG has a lot more money to spend on lawyers then a recently unemployed ex career agent will have. The arguments I am reading here are based on the way people think things should be or what seems fair. Reality is much different.

OK, I could only read so much of this nonsense before yelling at the screen.

So, TDK, in your mind, if a former AGLA agent moves a client to, say, North American, AGLA will sue North American for "accepting" a new policyholder, just because the agent may have possibly violated a non-compete clause?

The notion is beyond ridiculous. How in the hell would NA have any possible way of knowing the circumstances of the sale, other than, obviously, that it was a replacement? In your mind, is NA required to investigate every application that comes in to ensure the agent didn't illegally snatch the business from some other third party they have no control over?

Please. Gimme a break. And let's give it a rest.

 

[xrac]

Career agency companies take legal action against former employees frequently. They file action with the state insurance department which freezes the license. They file civil suits against the former employee and any broker or company which accepted sales that came as a result of breaking the non-compete agreement. AIG has a lot more money to spend on lawyers then a recently unemployed ex career agent will have. The arguments I am reading here are based on the way people think things should be or what seems fair. Reality is much different.

Has anyone noticed that TDK has disappeared since he made this what I consider to be "erroneous" statement. Sounds like he is someone who has drank the koolaide.

 

[SWM]

I was told Metlife sent out a letter advising their career agents that they will no longer be W2. Company is moving to an independent platform. All health insurance, 401k, etc. will be ceasing. I have a family member who was affiliated receive that letter within the last few days. Seems to be a trend. My friend worked for AGLA out of a Virginia office and he related they had security show up to escort people out, minus their computers. Fortunately, most agents can and will find gainful employment elsewhere.

 

[rousemark]

I was told Metlife sent out a letter advising their career agents that they will no longer be W2. Company is moving to an independent platform. All health insurance, 401k, etc. will be ceasing. I have a family member who was affiliated receive that letter within the last few days. Seems to be a trend. My friend worked for AGLA out of a Virginia office and he related they had security show up to escort people out, minus their computers. Fortunately, most agents can and will find gainful employment elsewhere.

Yeah.. The folks in Knoxville noticed moving vans outside that morning. They thought some company might be moving in or out of the complex. had no idea it would be theirs. The security guards walked in the door just as the conference call ended. They escorted the CSRs to the door and then collected the agents laptop and made sure the agents only left with personal items.

Some of the management team was in Nashville for a GM meeting. The moderators called out some names of the managers were there; took them aside; told them they were no longer employed by the company; to leave their cell phones and laptops on the tables and then leave the building. Bet that was a shock!

I did learn that after the accounts are settled they are going to pay the agents the remainder of their commission pool or 5K whichever is greater. The agents also got two weeks severance pay.

 

[SWM]

I may be wrong, but it was my understanding that all AGLA Regional directors were let loose, but those who met certain guidelines were retained, such as minimum AP. Is there any truth to that? I believe they were all Sage Point reps. That will be a blow to the BD.

 

[scagnt83]

None of this is good for the industry imo. Career shops are where agents learn the basics of this career. Both AGLA and Met had solid career channels. Are Pru career shops still around anymore?

 

[DHK]

Prudential is still around.

When you think of the infrastructure required to have a career agency office... and with technological advances, it would just make more business sense to end the traditional agency model.

Appoint and train agents in their homes, or let the agent bear the risk and financial responsibility for an office, if they want it and pay the agent more commission. Companies reduce overhead expenses and only pay the higher commissions upon policy issuance.

The only insurance agencies that really require an office, are those who have a B/D. Makes registering and managing "branch locations" easier and more affordable. Plus, you really don't want to have a "surprise audit" by FINRA and have them show up at your home (not that they couldn't anyway).

And even then, have a great online CRM / Infrastructure and you'd only need ONE branch location for the entire B/D... or just one per state.

 

[Ronnie Carter]

Has anyone noticed that TDK has disappeared since he made this what I consider to be "erroneous" statement. Sounds like he is someone who has drank the koolaide.

Or maybe his license got "frozen."

Man, that sounds painful for a guy over 40!!

 

[DHK]

Has anyone noticed that TDK has disappeared since he made this what I consider to be "erroneous" statement. Sounds like he is someone who has drank the koolaide.

He must've gotten to the part in his series 6 study materials where all electronic forms of communication are considered 'advertising' and must be approved by a compliance officer before posting to the public.