Assigning Commissions

Who said many FMOs look for assignment of commissions? I frequently get the assignment form with my appointment packets and never sign them my appointments go through so just what FMO is requiring assignment?
 
I agree. You should not assign commissions. You do lose all control of your income. Should there be a falling out, the FMO gets all your commission and you are at their mercy to receive any. I express this when I am talking about contracting with a FMO. Releases and commission assignments are the 2 biggest factors we stress at SIMA when talking to a FMO.

It seems most of the newer agents who find the forum or SIMA are already in a situation where they have assigned their commissions and are now upset over it. I have talked to agents who then have made the same mistake again. I know, shame on the agent, but I am hoping by having some verbiage to use as a tool, we can "stop the madness".

After reading everyone's input, here is what I am thinking the best course is:
1. Leave it as a draft and use it as a teaching tool
2. Stress being paid direct
3. If this is not possible, make sure there is a clear cut exit plan (i.e. release)

I know, there should never be a situation where it is not possible. But when agents are promised the world and they "know" this opportunity to work with a FMO is "different", the only thing I can do is stress the clear exit plan.
 
Think about logistics for a second why would and FMO want the hassel of recieving and paying commissions to agents there is no upside till you realize they can stop paying and keep the commissions the other side is the MLM type groups who need assignment because they want to create special levels that can't be done with carriers.
 
If you are new to the business, it might be wise to get trained and assign your commissions for a few months but afterward I'd go independent. I also would not fill out any contracts with your primary carries as you will not be able to get re-appointed with them from six to twelve months. So, I would only contract with a few.
 
If you are new to the business, it might be wise to get trained and assign your commissions for a few months but afterward I'd go independent. I also would not fill out any contracts with your primary carries as you will not be able to get re-appointed with them from six to twelve months. So, I would only contract with a few.

If you're going to go that route, save yourself the headache and don't even bother to get licensed.
 
If you're going to go that route, save yourself the headache and don't even bother to get licensed.

Yeah, that makes sense. Go and assign all your commissions and you're trapped there for three years if you want to sniff any sort of renewals and then you probably won't get paid what you're owed anyway.

Most people starting out shouldn't be contracting with 15 different companies..ever. They should have two or three companies and should be focusing on a few products only.

Most people in this business were not running around selling med supp, med advantage, ltc, pdp's, cancer, life and hospital plans to start. Just to name a few.
 
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