Being released from an agency, questions about their "release form"

[DonP]

Hello this is for Final expense carriers, but I believe my old agency owner is worried that once other hears everything being offered he might lose more agents to the new one. Medicare Side I was never contracted with them.

As another poster said you've written nothing with the releasing agency so what your new agency agreeing to on the release is irrelevant

 

[Jim Wright]

I've been told that many many times . I'm on many groups were all the fmo's preach to move your Medicare contracts by 3-31 . I'm talking mapd contracts . What it means is you can move them yourself without the fmo signing off . But I believe it can still take 90 days to move them. If you self release after march 31 it takes 6 months to move them. Again this is for fmo's that refuse to release you. But all your renewals stay with your old fmo until you move that business over the yrs . So even if you leave an fmo they'll still be making renewal overrides for many yrs .

Kind of. Each carrier has a diff policy. Most are 3 month delayed releases, some are 6 month. Where it gets tricky is that if you do a delayed release (not getting an immediate from your upline) the first day after the 3/6 month delay can't be in the blackout period.

i.e. you request release on 3/1, 3 month delay, your appointment transfers to your new upline on 6/1. If you release 6/1, 3 months, 9/1 your appointment transfers. If 9/1 is the carrier blackout period, your appointment transfers 1/2 the following year (or later if their blackout period extends but most don't).

Another key thing here is that you have to transfer it somewhere. You can't go direct. There has to be an accepting upline.

 

[DonP]

Kind of. Each carrier has a diff policy. Most are 3 month delayed releases, some are 6 month. Where it gets tricky is that if you do a delayed release (not getting an immediate from your upline) the first day after the 3/6 month delay can't be in the blackout period.

i.e. you request release on 3/1, 3 month delay, your appointment transfers to your new upline on 6/1. If you release 6/1, 3 months, 9/1 your appointment transfers. If 9/1 is the carrier blackout period, your appointment transfers 1/2 the following year (or later if their blackout period extends but most don't).

Another key thing here is that you have to transfer it somewhere. You can't go direct. There has to be an accepting upline.

I thought for mapd the only period an agent can self release is 1-1 to 3-31 for a 3 month release ? All other self releases are 6 month holds if the fmo refuses ? What's the big upside of releasing 1-1 to 1-31 ? Medicare mapd Fmo's are always saying self release in the first quarter . Why? What crazy is even when you release the upline makes renewal overrides till your book goes to zero with them

 

[Bogeyinvader]

My new agency had a conversation with the old one, and form what was told to me several of the agents are wanting to leave them to join his, and it's enough of a disruption that the old agency is putting that verbiage in. The new agency holds recruitment events and the one I went to had 30+ people in it, so I can assume seeing that was a shocker because they are requiring the new agency to sign it as well. The old owner called and said to me to just get them to sign and we will release you, which to me was a little shady.

 

[Jim Wright]

I thought for mapd the only period an agent can self release is 1-1 to 3-31 for a 3 month release ? All other self releases are 6 month holds if the fmo refuses ? What's the big upside of releasing 1-1 to 1-31 ? Medicare mapd Fmo's are always saying self release in the first quarter . Why? What crazy is even when you release the upline makes renewal overrides till your book goes to zero with them

The sooner you move to the new FMO, the sooner they make money. There are also usually some hiccups and most agents aren't very attentive so if they start the process early, they can make sure everything gets finished before the blackout.

There could also be some benefit if you're getting technology from them to make sure it's set up before OE.

The renewal part kind of makes sense. In the eyes of the carriers, the FMO gave resources to earn that business so they continue to compensate them. The new FMO hasn't really done anything.

 

[DonP]

The sooner you move to the new FMO, the sooner they make money. There are also usually some hiccups and most agents aren't very attentive so if they start the process early, they can make sure everything gets finished before the blackout.

There could also be some benefit if you're getting technology from them to make sure it's set up before OE.

The renewal part kind of makes sense. In the eyes of the carriers, the FMO gave resources to earn that business so they continue to compensate them. The new FMO hasn't really done anything.

So you're telling me if you self release anytime before June 1st with most carriers it's a 90 day period to move? So there's no advantage release wise moving Jan 1- March 31? On all the facebook groups they acted like it was much better to self release in the first 3 months as far as speed of moving your contracts

 

[Bogeyinvader]

So you're telling me if you self release anytime before June 1st with most carriers it's a 90 day period to move? So there's no advantage release wise moving Jan 1- March 31? On all the facebook groups they acted like it was much better to self release in the first 3 months as far as speed of moving your contracts

I was told on medicare I can get an immediate release if approved. since I didn't have any Medicare contracts I didnt have to worry about

 

[Jim Wright]

So you're telling me if you self release anytime before June 1st with most carriers it's a 90 day period to move? So there's no advantage release wise moving Jan 1- March 31? On all the facebook groups they acted like it was much better to self release in the first 3 months as far as speed of moving your contracts

Correct. This is an old version of our carrier list but this is what it looks like for most carriers

 

[LydiaB]

Correct. This is an old version of our carrier list but this is what it looks like for most carriers

What if you stay in the same Fmo but change uplines and the uplines does an immediate release? Does everything just switch over? I will be doing this soon & I'm nervous to have delay in my commissions for Aca especially as I switch over.

 

[Jim Wright]

What if you stay in the same Fmo but change uplines and the uplines does an immediate release? Does everything just switch over? I will be doing this soon & I'm nervous to have delay in my commissions for Aca especially as I switch over.

I'm not really sure what you mean here. Your upline and FMO are typically the same entity. Are you under an FMO that's under another upline? In general, the top upline needs to release you. It should have no affect on your commissions if you get paid direct from the carrier. If the FMO is paying your commissions then you could have a problem with them paying out.