Let's talk releases!

[Joe Moore]

They talk to an agent maybe a couple of times on the phone for a total of maybe 30 minutes or so, blow a whole lot of smoke up his ass, fax him a contract and go on to get the next agent. That is the last time we hear from them.

It's simple, their argument about not giving releases comes from a position of greed. I think that is very evident in this post.

Frank,

No doubt the industry has changed greatly in the last 20 or so years, sometimes in a negative way. Being a selling agent also, we don't blow smoke when recruiting agents or selling. We try to tell it like it is, the way we understand it. We also let our agents know to contact us if we can help in any way. For a while we had a lady on the telephone calling usually monthly to agents seeing if we could help them in some way. Some agents (usually the non-selling ones) were seemingly offended by us trying to help them boost sales with a phone call.

With the newer tools we all have available now; internet, email blasts, emailing contracts, faxing back in contracts, selling policies over telephone, voice signatures, MIBs, Medpoints, etc. the industry is much different than when you and I started peddling our products. All these new tools have led to the industry being less personal contact. But, the innovations have also led to less costs of operation and higher commissions available.

I don't look at the release issue as a question of honesty or greed. I look at it as more of a protection situation for debit balances, rescinded claims, etc. I have as much issue as you guys do with the way some Marketing Organizations have a blanket policy in place of "no releases". We have one company that their agents through one IMO are tied up for 2 years after the agent has been terminated. When we find one of their former agents wanting to come back, they better have been gone 2 years or they are off-limits. I don't like it and none of the other IMO's like it, but that is the way it is. I think this is overprotection, but if we want to play the game we need to know the rules we are playing by and try to comply with them.

In our 10 or so years as an IMO, we have probably not been asked for a release over 10 times. I really cannot remember when we refused a release. We do not want to stand in the way of someone being successful. But, as you say sometimes an agent has had smoke blown up his/her ... (usually with the Free Lead bit) and they have to at least talk to us for a release, we have the opportunity to try to explain what he/she is getting into.

I look at it as a protection situation for the agent, as well as ourselves. Sometimes newer agents are more gullible than you and I may be. Fifteen years ago, we were also probably more gullible than now. You and I have probably seen most of the dog and pony shows in this industry. I feel every release situation has to stand on its own merits and if a legitimate situation exists, grant the release.

Joe Moore [email protected]
National Senior Benefits
Asurco Insurance Marketing
www.asurco.com
PO Box 1954
Morristown, TN 37816
1-800-226-1004
1-423-581-1004

 

[Winter_123]

Frank,

No doubt the industry has changed greatly in the last 20 or so years, sometimes in a negative way. Being a selling agent also, we don't blow smoke when recruiting agents or selling. We try to tell it like it is, the way we understand it. We also let our agents know to contact us if we can help in any way. For a while we had a lady on the telephone calling usually monthly to agents seeing if we could help them in some way. Some agents (usually the non-selling ones) were seemingly offended by us trying to help them boost sales with a phone call.

Get a job.

Winter

 

[Joe Moore]

It is only a matter of time. FMO's who fail to release will need to explain to the IRS their definition of Independent Contractor. The IRS will make charge backs look better then back taxes!

Joe, I did the MO gig 18 years ago. I would much prefer what you have so fondly described as the good-old-days. Yep, life is to short for the MO life with a sliver for a profit. Joe have you seriously considered the benefits of just you and your son and dropping the headaches of being an MO.

​

I am sure this would make life waaay too simple. Believe me, the thought of just selling locally has crossed our minds more than once. We still do sell and have agents working out of our office.

I have an older son who wants nothing to do with anything but his own sales. Says too many crybabies in this industry to deal with. Sometimes, I think he is right.

Joe Moore [email protected]
National Senior Benefits
Asurco Insurance Marketing
www.asurco.com
PO Box 1954
Morristown, TN 37816
1-800-226-1004
1-423-581-1004

 

[Joe Moore]

Get a job.

Winter

Thanks for the good advice. I feel I have a great job and love it, problems and all. Sorry if you don't agree.

 

[Crabcake Johnny]

Joe,

If the clause that does not allow the release of an agent except upon the FMO's authorization is not found in writing would you consider that a contractually illegal situation?

Do your contracts with new agents contain such a clause or is it something you hope agents don't find out about or discuss.

 

[Joe Moore]

Patch, to answer part of your question earlier, when an IMO grants you a release, they have the right to ask you to pay the money you've been advanced. After that they are not in jeapardy of losing anything. I've done it as I'm sure others on this board have. Since the IMO's are on the hook for your debit should you roll any business etc, they should have the right to ask you to do that.

Debit balance are not all the IMO could be at jeopardy for.
If an agent had a claim in the contestable period, and it was not paid due to client or agent mis-representation a charge back could occur.

 

[Joe Moore]

I would assume that expenses here also include salaries. If that is the case a 10% return ain't bad depending upon what is taken out by Joe and his son as compensation.

This includes a decent salary for my son, but not for me. My earnings mainly still come from my sales, and renewals.

 

[Joe Moore]

Joe,

If the clause that does not allow the release of an agent except upon the FMO's authorization is not found in writing would you consider that a contractually illegal situation?

Do your contracts with new agents contain such a clause or is it something you hope agents don't find out about or discuss.

We do not have a form for or against a release. The companies have internal policies in place that will not allow IMO hopping by agents, except by release of the IMO or when certain time periods have elapsed.

I am sure it could become an administrative nightmare if they did not have these rules in place. Some agents would want to change IMOs every week if this were allowed.

Joe Moore [email protected]
National Senior Benefits
Asurco Insurance Marketing
www.asurco.com
PO Box 1954
Morristown, TN 37816
1-800-226-1004
1-423-581-1004

 

[Crabcake Johnny]

This is contract law 101 - if it's not in writing it cannot be enforced.

If any agent did indeed take their FMO to court it would be the world's fastest case:

Judge to FMO: "Point out the clause that states this agent cannot move his appointment."

FMO: "ummmmm"

Judge: "Judgement in favor of the plaintiff"

It's the industry's "dirty little secret" that agents cannot be released. FMO, IMO, GAs, etc...count on agents not figuring this out until it's too late.

However, the FMOs know that agents don't have the time or money to sue. Even if they did the six months would pass making the trial a mute point.

The only thing we can do is try out best to spread the word so agents only sign up with FMOs, IMOs, GAs who offer an upfront release.

And if you think offering an upfront release means agents will dive out right and left I encourage you to speak with Scott Slutzer of Health Choice One - who offers an upfront release - and ask him how many agents opted to use that clause.

And don't worry - none of you guys are beating the system. Any agent who's writing business who wants to blow out will just ghost write.

 

[moonlightandmargaritas]

I will omit the names here because this didn't happen to me personally.

Someone that I mentor very lightly called me for some advice last week. They wanted to change their direct contract with a carrier to a marketing organization in order to get advances.

The carrier said no, can't be done, the marketing organization is designed to recruit new agents, they can't be taking our agents, etc. All things that are not the agent's problem, and he doesn't care about.

I suggested that he find out who the Nat'l Sales Manager was, send him an email explaining that either: a) they could approve the transfer, or b) they would not enjoy any more of this person's new business...

Voila! The transfer was completed before the end of the next business day.