How Can a Captive Company Enforce Their Contract?

[turbobimmer]

I am a captive agent in arizona and im curious as to how an insurance company monitors their captive agent production to spot contract violations for selling competing products? I mean if the state department of insurance doesnt publish the companies your contracted with or the policy types that you have sold how could the captive company ever catch you? Other than another agent from that company finding out and turning you in what other ways can the company find out?

 

[taterpeeler]

This Is A Cut Throat Biz... Either Be Captive Or Get Caught... Just My Thoughts

 

[turbobimmer]

This Is A Cut Throat Biz... Either Be Captive Or Get Caught... Just My Thoughts

Be captive or get caught? Did you mean be independent or get caught?

 

[GMANPRO]

I am a captive agent in arizona and im curious as to how an insurance company monitors their captive agent production to spot contract violations for selling competing products? I mean if the state department of insurance doesnt publish the companies your contracted with or the policy types that you have sold how could the captive company ever catch you? Other than another agent from that company finding out and turning you in what other ways can the company find out?

All it takes is one customer called the 1 800 number and saying they have a policy through another company from you. Termination or even a sue if they say you used their name or logo to attract business for another company...

 

[Larry Tew]

... I mean if the state department of insurance doesnt publish the companies your contracted with...

You're incorrect about that. Every DOI in every state I've ever looked at lists ALL the company appointments for every agent. The insurance company home office can routinely look to see who their agents are appointed with and so can your captive agency managers.

 

[azmedsupagent]

Well its a first right of refusal contract so I am allowed to be contracted with other competing companies. So this wouldnt really raise any red flags either.

 

[VolAgent]

You're incorrect about that. Every DOI in every state I've ever looked at lists ALL the company appointments for every agent. The insurance company home office can routinely look to see who their agents are appointed with and so can your captive agency managers.

Not all states make this information public. Arizona is one state that does not.

It is possible they will provide the data to the insurance company, I don't know. That said, there are many ways the insurance company can find out. As Tater said, either play it straight or leave.

 

[Larry Tew]

Not all states make this information public. Arizona is one state that does not.

It is possible they will provide the data to the insurance company, I don't know. That said, there are many ways the insurance company can find out. As Tater said, either play it straight or leave.

I've never tried AZ. But yeah, the bigger point is that if you're going to choose the captive system (you must have thought it was the way to go or why did you choose it), be honorable about it.

 

[vistavette]

Most ind companies will not appoint you if you're appointed with a captive so its basically a non-issue. Everyone in our area that has tried to place a lot of business outside of the captive gets caught eventually. I know one person who ignored a cease and desist and they took the agency and didn't pay him a dime. Either be captive or go independent - there's really no reason to play the line.

 

[Sales71]

Other system has been used in your case. You can have your wife or your husband get appointed as an IA. And you still have your great captive gig if you like.

The stuff you do not write give it to her/him and see how that goes..then the DOI is non issue with that.