I'm going independent and I need some pointers.

[DonP]

12 month non compete has nothing do with your contract with CO's . It's appears you signed an agreement not to be in the Medicare business for 12 months after you quit . Wether they come after you or sue you if you get contracted and try to sell in the first 12 months I don't know

 

[Hawaii Agent]

In Hawaii, non-compete is illegal (cannot prevent someone from earning a living). Do not solicit is what we sign. I signed a 1 year DNS with a big captive carrier. You are not able to contact them; however, if the client contacts you, you are able to write the business. Check w/ an attorney to verify and make sure that you don't break any of your state's laws.

 

[somarco]

How about this non-compete?

A lot of bar room lawyers who are really insurance agents love to talk about how a non-compete can't be enforced.

That may very well be true but it won't stop a former employer from suing you, which forces you to spend money you may not have to defend yourself.

Civil lawsuits don't require proof of damages to get a judge to sign off on the suit. The company just has to state they were irreparably harmed by your actions and need to sue to get access to your records to prove their point.

Before you know it you are a year down the road and several thousand in the hole because of attorney fees, depositions, etc.

OTOH if you don't do anything to raise suspicion and pi$$ them off you might walk away clean.

 

[DHurd]

A lot of bar room lawyers who are really insurance agents love to talk about how a non-compete can't be enforced.

That may very well be true but it won't stop a former employer from suing you, which forces you to spend money you may not have to defend yourself.

Civil lawsuits don't require proof of damages to get a judge to sign off on the suit. The company just has to state they were irreparably harmed by your actions and need to sue to get access to your records to prove their point.

Before you know it you are a year down the road and several thousand in the hole because of attorney fees, depositions, etc.

OTOH if you don't do anything to raise suspicion and pi$$ them off you might walk away clean.

So basically, he should get a list of every single customer and avidly rewrite them all immediately after quitting with different carriers?

 

[m90180]

So basically, he should get a list of every single customer and avidly rewrite them all immediately after quitting with different carriers?

You joke..

That's what a bunch of agents did here.. they were up to shady crap at Bankers (Don't DNC unless they ask 7 times) and were getting internally investigated. Then they opted to take Bankers internal files as they were being investigated to market to them after they left. Got sued. Settled.

They've been clean for about 10 years now, but only had to change their name twice.

If I were OP, knowing that you probably can't sell Medicare for a year, I'd go to FE. DBGA would be a great fit.

I don't market into AEP.. my phone just rings. From January to September is when you should spend your marketing budget, imo. Then spend AEP getting that sweet, sweet $41 comms for PDP.

 

[Todd King]

12 month non compete has nothing do with your contract with CO's . It's appears you signed an agreement not to be in the Medicare business for 12 months after you quit . Wether they come after you or sue you if you get contracted and try to sell in the first 12 months I don't know

No, more than likely it is about going after the customers.

I am not a lawyer, but I can guarantee you nothing like that would ever hold up in the least. You (a company) can not hold someone from working in their said profession. They can limit who you do business with (their clients), but they can't take away the whole world.

 

[Todd King]

Background: I work with one of the bigger agencies that primarily sells medicare plans. I get free leads and a reduced commission, it's a call center. I get paid once on a sale and that is it, no residual. I've really enjoyed working with this company, but I just feel limited and want to do things on my own and actually manage a book of business.

Questions:

FMO/IMO to work with?

Which states to be licensed in and what carriers to work with? I am currently licensed in every state and appointed with many carriers. When I go independent I am thinking of doing maybe 10 states or so and maybe 5 carriers.

I signed a 12 month non-compete. I need to look over the document and perhaps get a lawyer to check it out too. They definitely won't release my appointments with the insurance companies but it is my understanding that the insurance companies will release them after 6 months. Will I be able to get new appointments with carriers after 6 months? I'm not planning on selling any plans to my clients I have established with my current company I just plan on starting fresh in AEP. Any experience on this? Do you think it will be a problem?

Lastly, am I being stupid? I've had success selling medicare plans with this company. Should I just stick it out? I don't have much control in my day to day schedule, but the incentive structure is pretty generous. I made 83K last year which was my 2nd year selling insurance.

Any tips you have will be welcome. Thanks!

Do give us a call/visit the website sometime.

With most of the carriers you will be about to go freely at 6 months since you last wrote a piece of business. However, depending on the agency you're working with, you may want to think about terminating those contracts, in writing, with the individual insurance companies just to be safe.

Making your getaway should depend a great deal on how much you've been able to keep in your bank account.

Here's what I mean. You may be great at selling "Medicare Plans" (does that include Med Supps too?), but will you be successful at doing something else for 6 months or will you have to dig deep into your account while you wait out being able to sell on the Medicare side again?

Sounds like you were fed leads. Can you market on your own? Hint: Yes, you can, but it takes discipline to do it right. Consistence in ordering and working the leads. You now wear all the hats. Production will go down, but your commission % goes way up.

Give me a call sometime if you want to chat about anything.

 

[Joel T]

Non competes are controlled by each states laws.
Invest in a 1 hr consult worh a local lawyer.

 

[Katelynd]

Jumping in here as I am in a similar situation to OP. Have my own agency built on group but looking to diversify into IU65 and Medicare. No experience in those worlds. Spoke with HST yesterday but am trying to be cautious as to who I commit to. Obv I need the training and access to markets but wondering if it is worth it? Something like 15% comm on IU65. Levels based on AP topping out at like 25-30%. That bothers me. Not clear what they take on Medicare which is really what I am more worried about b/c of all the regulations. Any insight??? I am willing to take less to learn but not if I can learn and get better commissions.

 

[somarco]

Jumping in here as I am in a similar situation to OP. Have my own agency built on group but looking to diversify into IU65 and Medicare. No experience in those worlds. Spoke with HST yesterday but am trying to be cautious as to who I commit to. Obv I need the training and access to markets but wondering if it is worth it? Something like 15% comm on IU65. Levels based on AP topping out at like 25-30%. That bothers me. Not clear what they take on Medicare which is really what I am more worried about b/c of all the regulations. Any insight??? I am willing to take less to learn but not if I can learn and get better commissions.

I stopped writing U65 health insurance over 10 years ago, so no idea what commissions are like on "traditional" Obamacare products. I believe comp is only paid on open enrollment, not SEP, but that may vary by carrier and state.

A number of agents/agencies are peddling junk health insurance plans with holes you can drive a Mack truck through. Gives folks a false sense of security that they are protected against financial ruin when in fact they are not.

Caveat emptor and the agent would be wise to do the same.

Medicare, especially Advantage plans, have a lot of govt restrictions and oversight. Tread lightly if you are writing MAPD and PDP. Beyond the certifications you need to be sure you understand the rules of engagement before proceeding.

Medicare supplement has few agent constraints and may be a better way to ease yourself into this market.


Back to the non-compete discussion . . .

It really doesn't matter what is legal/enforceable or not. The bottom line is, if a former employer wants to make your life miserable with lawsuits and threats they can make you dance like a wild west gunfighter shooting at your feet.