large scale replacements of your own clients-

[SpruceBruce]

Just remember when that contestable claim is not paid, what you told the client doesn't matter... Generally there are only two witnesses to what what was said and one of them is dead... The other's testimony is suspect as being self serving.. This is one case where you are guilty until proven innocent..

I like your comment. I will create a contestable period disclosure form for the client to sign at time of application and give them one copy and keep a copy for their file. That should take care of that issue. Thanks for the replys...

 

[SpruceBruce]

Might want to review your contract before you do anything. Insurance carriers hate agents who go elsewhere and try to pull away existing business. You could end up spending all your new commissions in defense in court. Look through the old stuff here. There was an agent who rubbed the former company's nose in how many clients he was pulling off.

They pretty much drove him out of business, by the cost of defense. Remember who has the deeper pockets and who gets the replacement notice with your name on it.

If you're going to replace your prior business with a new carrier, do it slowly. Do not draw attention to yourself. It can be expensive it you do.

Remember it is not a matter of who is right or not, it's a matter of who has more money and who can last in court. The best plan is do it slowly that you don't hit their radar. Insurance companies have a habit of making examples so other agents don't get the same idea.

L- Gilmore
I have thoroughly read the agents contract agreement. No where in there does it state
any remedies against me for me replacing policies other than to terminate my contract with them and and all future commissions. As long as I comply with all the state regulations, and do what is in clients interest. I don't see a legal problem. After all replacement is completely legal if its in the clients best interests.

 

[VolAgent]

L- Gilmore
I have thoroughly read the agents contract agreement. No where in there does it state
any remedies against me for me replacing policies other than to terminate my contract with them and and all future commissions. As long as I comply with all the state regulations, and do what is in clients interest. I don't see a legal problem. After all replacement is completely legal if its in the clients best interests.

People with lots of experience in the business are telling you not to do this. They've seen what happens when it goes south.

Take the advice or ignore it at your peril.

 

[DHK]

I like your comment. I will create a contestable period disclosure form for the client to sign at time of application and give them one copy and keep a copy for their file. That should take care of that issue. Thanks for the replys...

Disclosure isn't the same as taking care of the client. That's called CYA.

The replacement disclosure forms from the insurance company should take care of that disclosure, rather than creating it yourself.

 

[SpruceBruce]

People with lots of experience in the business are telling you not to do this. They've seen what happens when it goes south.

Take the advice or ignore it at your peril.

People with lots of experience in the business are telling you not to do this. They've seen what happens when it goes south.

Take the advice or ignore it at your peril.

I too am an experienced agent. If compliant with laws and doing what is best for clients,

Disclosure isn't the same as taking care of the client. That's called CYA.

The replacement disclosure forms from the insurance company should take care of that disclosure, rather than creating it yourself.

I like your photo--

 

[DHK]

As long as I comply with all the state regulations, and do what is in clients interest. I don't see a legal problem. After all replacement is completely legal if its in the clients best interests.

And "attacking" an entire book of business (that YOU sold) in a short-term period after terminating your selling contract is going to be seen as "in the client's best interest" in a court of law???

Your insurance company would win quite easily in that suit. It's not about the client, but about improper actions taken by a former agent.

 

[DHK]

I like your photo--

All we need are a few GOOD agents... and this thread isn't exactly great for the industry to talk about becoming a "replacement artist" of YOUR OWN book of business.

 

[DHK]

BTW, read your contract regarding "trade secrets". Your client list would be classified under that provision. Terminate your contract (and retain that information) and start replacing all of those policies, and THAT would be why you would be sued.

It would be a business dispute, not a suitability issue.

 

[rousemark]

BTW, read your contract regarding "trade secrets". Your client list would be classified under that provision. Terminate your contract (and retain that information) and start replacing all of those policies, and THAT would be why you would be sued.

It would be a business dispute, not a suitability issue.

And, for all the bluster by agents about the clients being theirs and not the companies, the contracts say otherwise... And, even though none of us comply, the contracts ususally require you send all materials and records ... including the client list.. to the company upon termination..... Company decides to sue over that, they are going to win..

 

[DHK]

Personally, I'd send them any copies they'd want, but I would hold on to these files for my own purposes - primarily for my own licensing protection and defense, should a complaint ever arise.