FMO and Agent Relationship

[jm31md]

Thanks for all the responses. I just feel like I'm always waiting on someone else to do their part so that I can simply go out, hit the pavement and learn along the way. The loop seems to never close. Do I need to wait on the FMO for anything if I'm already certified with certain carriers?

Where can I find other reputable GA's and FMO's?

 

[Josh]

Thanks for all the responses. I just feel like I'm always waiting on someone else to do their part so that I can simply go out, hit the pavement and learn along the way. The loop seems to never close. Do I need to wait on the FMO for anything if I'm already certified with certain carriers?

Where can I find other reputable GA's and FMO's?

You need to make sure you have all your contracting in so you can get paid. One of my agents got the bright idea to go out and sell Aetna before he got appointed. He did go through and get all his paperwork in though. Fast forward 7 weeks, he's calling Aetna to see when he'll get paid and here's their response: "You're not going to get paid because you weren't appointed." They are still sticking to their guns about that one. Moral of the story is make sure everything is good to go and you have confirmation from your FMO and/or carriers that you're going to get paid.

Send me a message with what area you're in and what you want from an FMO (like leads, high commissions, lots of support, etc) and I can let you know a few FMO's/GA's I'd recommend. If you're mostly going out on your own and doing your thing odds are you'll be able to get a high commission. If you need leads and support the commission starts to go down a little bit. If the forum wont let you send me a message feel free to just send me one from my website.

 

[moeasadi]

What's the difference between FMO and GA?
I am in Ca. and currently deal with Crump(formerly Bysis) GA. for Life
insurance.Does anyone has any opinion about them.I keep doubting myself weather I am in the right track or not.Thanks

 

[Josh]

What's the difference between FMO and GA?
I am in Ca. and currently deal with Crump(formerly Bysis) GA. for Life
insurance.Does anyone has any opinion about them.I keep doubting myself weather I am in the right track or not.Thanks

Sometimes they are used interchangeably, but here is what I think a good explanation.
An FMO has a contract directly with a carrier and will usually contract GA's under them. The GA's will then recruit agents and managing agents. So here is the way the contracts flow:
Carrier~>FMO~>GA~>Agent. Each company/organization seems to have their own way have changing these around but that's the gist of it. FMO's are huge organizations that contract lots of agents (20k) and GA's usually have a contract with the FMO and manage a team of however many brokers they have. Most of the "FMO's" on this forum are just GA's with good contracts.

Does that help?

What's your problem/concern with your GA?

 

[moeasadi]

Sometimes they are used interchangeably, but here is what I think a good explanation.
An FMO has a contract directly with a carrier and will usually contract GA's under them. The GA's will then recruit agents and managing agents. So here is the way the contracts flow:
Carrier~>FMO~>GA~>Agent. Each company/organization seems to have their own way have changing these around but that's the gist of it. FMO's are huge organizations that contract lots of agents (20k) and GA's usually have a contract with the FMO and manage a team of however many brokers they have. Most of the "FMO's" on this forum are just GA's with good contracts.

Does that help?

What's your problem/concern with your GA?

Thank you It was helpfull.
My concern is that A)I don't want to end up leaving my natural market which is my best clients with a GA/FMO.
B) 100% or best commission available. I am contracted w/ Waddell & Reeds a B/D and they are contracted thru Crump Life services for all products except Variable products which are offered thru Nationwide.Crump pays 93% 1st year commission to W&R. and then they will take a cut that I have not yet figured out.
Does anyone know a GA/FMO that pays 100%?
Any experiences with 3Mark Financial? I found them on web.
Thanks a lot for all the input.

 

[insuranceexec]

Thank you It was helpfull.
My concern is that A)I don't want to end up leaving my natural market which is my best clients with a GA/FMO.
B) 100% or best commission available. I am contracted w/ Waddell & Reeds a B/D and they are contracted thru Crump Life services for all products except Variable products which are offered thru Nationwide.Crump pays 93% 1st year commission to W&R. and then they will take a cut that I have not yet figured out.
Does anyone know a GA/FMO that pays 100%?
Any experiences with 3Mark Financial? I found them on web.
Thanks a lot for all the input.

Yes! But you will not have access to those contracts by using Waddell & Reed unless you are a super producer. Are you needing a great deal of support?

 

[moeasadi]

Yes! But you will not have access to those contracts by using Waddell & Reed unless you are a super producer. Are you needing a great deal of support?

thanks William for responding
I need some support and don't mind paying for it. I am also concerned of loosing my securities licenses, so I want to be contracted with one that offers life ins. & securities or Var. Life.
I am just not sure about Waddell & Reeds and all the negative report I read aboutThem.

 

[hlink20]

Hello,

I'm very new to the industry and also new to the forum. I've had my Life license for 3 years via Primerica before leaving them more than a year ago. I used that to what I thought was my advantage and acquired my health license with brighter hopes of entering the health industry. Being a newbie obviously has it's own unique obstacles and I met my first major obstacle in Jan 08. Contracted with an FMO that within a month or so of starting I quickly recognized the lack of communication was present, lack of organization, and lack of direction. So being a "newbie" I thought I could back out of my contract without any major issues since I refused to write any business with them. I tried contracting with another FMO and of course the first FMO refused to release me despite my refusal to write any business. The way they treated me was unlike any other. They treated me as if I committed a crime or a carnal sin. I ended up sitting a whole year out before making any type of transition with the new FMO. Ok...I think I'm venting or rambling right now.

So back to my question above.....what is the structural relationship between an FMO and New Agent suppose to be? Do FMO's have any responsibility to the new agent at all as it pertains to laying that foundation for competency...via trainings, field appts, etc.?

Thanks and sorry for the ramble.
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Many carriers require your existing GA/IMO/FMO to release you prior to moving. Many times it comes down to communication, when things got bumpy, what were your conversations with your FMO like? Did you ask for a meeting with the head of the organization? If so, how did it go? In many cases like this, a stalemate occurs between the broker and FMO. In your case the FMO would not release you and you chose not to produce for a year. This is a lose-lose situation, especially for you. The FMO most likely has a multitude of producers, so their production was not really affected. However, you are new into the industry and need to build your block of business. A solution is to request, in writing, for a meeting with the decision maker(s) of your FMO. If they refuse, you have a case to present to the carrier directly. If they take your meeting, then your position is heard and most likely will improve. Either way, this is a win-win for you. Lastly, there are carriers out there like Aetna, that will allow you to be appointed with multiple GA's. This forces the GA/IMO/FMO to earn your business. Good luck!

 

[Amber Scherloz]

Relationship between you and the FMO should be something like a give and take kind. They should take care of you for you are an asset and in return you can provide then with good results as an agent. If there is a problem with the communication and the way they treated you then it should be put to an end. You don't have to feel guilty or something for you know that you have all the good intentions but it just did not work out.

 

[Guest]

Im also a newly licensed agent and am wondering the best path. FMO or go directly to the larger companies humana or UHC
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how can i find a good FMO in SC
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can you recommend a FMO in SC