NYL TAS Contract to Independent

[BatonRougeChicken]

I have been with NYL for slightly over a year now under their TAS contract. Last year I paid for roughly $140k in life premiums. As of late, I have noticed people have been pigeon holing me as a NYL only agent and always decide to shop around. I am thinking about breaking my TAS contract to go independent DBA but still hang my license under mother mutual allowing me to still be affiliated with NYL to sell their products. I refuse to leave any of my clients as I promised them loyalty from day one.

However the first 3 year TAS contract has some significant bonuses such as 36k training allowance first year, 20k second year, 13k third year. If I break it I can sell any other carrier known under the sun. If I stay a TAS agent I'm technically not allowed to sell any other carriers, but I see agents doing it all the time.

My questions are:

1) If I get appointed as a PGA through Ohio National, will mother mutual find out? How?

2) If I break my TAS contract and go independent DBA while still under NYL, aside from Ohio National, which other carriers would you recommend I look to get appointed with?

 

[Norwayguy]

I have been with NYL for slightly over a year now under their TAS contract. Last year I paid for roughly $140k in life premiums. As of late, I have noticed people have been pigeon holing me as a NYL only agent and always decide to shop around. I am thinking about breaking my TAS contract to go independent DBA but still hang my license under mother mutual allowing me to still be affiliated with NYL to sell their products. I refuse to leave any of my clients as I promised them loyalty from day one.

However the first 3 year TAS contract has some significant bonuses such as 36k training allowance first year, 20k second year, 13k third year. If I break it I can sell any other carrier known under the sun. If I stay a TAS agent I'm technically not allowed to sell any other carriers, but I see agents doing it all the time.

My questions are:

1) If I get appointed as a PGA through Ohio National, will mother mutual find out? How?

2) If I break my TAS contract and go independent DBA while still under NYL, aside from Ohio National, which other carriers would you recommend I look to get appointed with?

Are you sure you can not sell anything other than NYL...I was an agent 10 years ago and was able to sell term from other companies other than NYL...If you are talking about permanent product then no your right you couldn't sell anything else....

Can you get appointed with Ohio National while trying to keep your NYL contract...Don't do it they will find out and you will have your contract cancelled....

You have 2 options stay where you are and keep your current clients or run and become independent you will be able to offer more carriers however most likely not NYL and you most likely lose your current clients for a period of time. Read your contract consult an attorney!

 

[BatonRougeChicken]

You can sell any carriers through our GA which is Crump/Bisys, but they take severe haircuts and don't always have the widest variety of carriers to sell. If I break my TAS contract (contract for first 3 years), all I would lose is my training subsidy they provide new agents. I can still stay with NYL and be directly appointed with other carriers.

 

[scagnt83]

At your level of production I wouldnt worry about keeping the NYL contract at all. It would be much more profitable to go completely indy.
NYL has a brokerage division as well, but they dont handle small cases.

I had a TAS contract at NYL and my biggest fear when leaving was not having NYL products anymore.
I assure you that it will not be a problem. I have not had a need for them yet. There are much more competitive products out there that most of the time are better suited for the client.


With your production level you could have some nice contracts going through the right BGA/FMO/IMO/etc.

Going indy would end up doubling your income (even with TAS payments) by a combination of higher commissions and gaining more clients by being more competitive.

Plus, at NYL, NYL owns your clients. They are their clients, not yours.
But theres a catch to that... the clients bought from you! In the clients mind you are their agent, not NYL.
What I am saying is that your clients will go with you. Plus, you will be able to replace all of your term clients policies at lower rates.

If you handle the transition right, you can send out letters to clients and call them informing them of your change.
You tell them that you now have a more complete platform of products and services to offer them; and that you can still help service their NYL policy.
Client communication is key in the transition process.

Even with a traditional NYL contract without TAS, you still have an overhanging premium commitment. This commitment will still influence your recommendations to clients; which undermines your objectiveness.

Being totally on your own, all your clients are yours, and your free to operate your business how you need to.
Its the best thing not only for you, but also for your clients. It might be some work in the short run, but in the long run it will benefit you more than you will know

 

[BatonRougeChicken]

Great post scagnt83!

I don't mind doing minimal production with NYL (I think it's $23k FYC to keep my contract) because I am good friends with the managing partner, I have a lot of friends here, I like the office environment.

I wanted to know after my TAS contract is over, can I have a PGA contract with Ohio National? In addition to that, if I have a PGA contract while I'm still on TAS, how would NYL find out?

But you're absolutely right that being independent will allow me to offer a much wider array of products to my clients and be more objective.

 

[DHK]

All company appointments are public on your state's insurance website under your license number. Captive companies WILL check on your license appointments. The DATE of appointment is also listed. If you become appointed with another company AFTER your appointment with your captive carrier, they will ask you about it.

 

[VolAgent]

Just a random thought...

Is going to have an Independent DBA on your card going to make you more independent? If all you recommend are NYL products, then you are in the same boat you are in right now. If you are recommending other products, then you are failing to effectively communicate to your prospects and clients why you are recommending NYL products. I'd say that is your real problem if you are constantly being shopped, they don't trust your recommendations. Maybe bring some other quotes with you, and tell them why the NYL product is the best fit.

 

[BatonRougeChicken]

I mostly get rate shopped when I buy leads, not off of my referral market or cold calls. That is why I would like to broker out to other carriers. In addition, NYL does not have a wide variety of life insurance products to offer the general consumer.

We do not have 15 year term, 25 year term, 30 year term, term with ROP. Our term rates are a lot more expensive than other carriers. In addition, we don't really offer many term products for an individual above age 60.

Think about it this way, a bank customer walks into Bank of America and the banker tells him "we have really competitive and great CD rates!!" How much truth is there to that when the consumer knowingly sees the BofA card and knows that there are probably products or accounts that better fit their situation instead.

 

[BatonRougeChicken]

In addition, once I am allowed to do so, NYL will not be the only carrier I will be recommending.

 

[VolAgent]

I guess I'm just confused. You are talking about getting an appointment with Ohio National, another WL mutual. Yet, you are with NYL. Either you believe in NYL's WL or you don't. I know NYL's dividends are not very impressive right now, but I can't imagine Ohio National's being much better.

Maybe it is just me, but if you are going to sell WL from a mutual, pick one you like and stick with it.