What Can You Do When Your Broker Will Not Release You from Your Contract?

[Agentinjax]

If an Agent has explained to their current broker that they have moved to a city 3 hours away and they would like to join forces with a local broker to insure they have adequate support (AEP leads, a backup supply of apps/documentation if they run out, training etc)...why can't the Broker just release them from the contract?

Other factors: The Agent has not sold anything on 2 carrier agreements ever after holding the appointments for over 3 months. The Agent sold 1 app with one of the carriers 2 months ago. So there is no money owed or anything to that nature.

SMDH.

 

[medsuptage]

This depends on a lot of things like what lines and specific companies you're referring too. A lot of companies will let you recontract without a release if you haven't produced business.

I don't know your particular situation but your current broker may be thinking that they invested a lot of time and effort training you and teaching you the ropes and to release you after all that hard work isn't fair. That may not be the case though.

Is your current broker willing to work with you even though you've moved?

There's a lot of moving parts here and with out enough information it's hard to give you a proper response.

 

[jdeasy]

If an Agent has explained to their current broker that they have moved to a city 3 hours away and they would like to join forces with a local broker to insure they have adequate support (AEP leads, a backup supply of apps/documentation if they run out, training etc)...why can't the Broker just release them from the contract?

Other factors: The Agent has not sold anything on 2 carrier agreements ever after holding the appointments for over 3 months. The Agent sold 1 app with one of the carriers 2 months ago. So there is no money owed or anything to that nature.

SMDH.

The insurance company is the one that won't contract you. The broker or IMO has nothing to do with it if the insurance company will give you a contract.

It's not really that simple because the insurance company and the IMO are holding you hostage in an agreement they have with each other that you never signed or agreed to.

It's their dirty little secret. IMO's that won't release are scumbags. But they can't get all the blame. The insurance companies have to get in bed with the scumbags to enforce this secret agreement.

 

[CALTCAgent]

why can't the Broker just release them from the contract?

If you have an up front open release signed by the FMO, you just show that letter and you are released.

I'd recommend you always get that letter or you will be in the same situation when the new FMO does not deliver what was expected/agreed, etc.

 

[tins]

Call them 90-100 times a day for support, then don't turn in any business.

 

[G.Gordon]

Depends on what was invested in you. Did the first Agency train you, pay you during training, or otherwise spend resources on you. If so, then you need to restore the value of resources spent then request a release.

If no resources were spent, then they are a dick. Sorry you contracted with a dick.

 

[larmiesss]

Sue them?? I thought that was basically illegal?

 

[G.Gordon]

Sue them?? I thought that was basically illegal?

You are clueless. Contracts signed are binding.

 

[jdeasy]

You are clueless. Contracts signed are binding.

Bein g held captive for 6 to 12 months after leaving is not in the contracts that agents sign.

Well, it may be in some but it's never been in any contract that I've signed. I have been held captive anyway.

Of course an agent could win it in court. But by the time you got a hearing the time of the release will have passed and you will still have to pay the attorney fees.

What it will take is a class action but agent don't stay in the business long enough to form a cohesive group for the class.

 

[Agentinjax]

This depends on a lot of things like what lines and specific companies you're referring too. A lot of companies will let you recontract without a release if you haven't produced business. I found out one carrier is doing that because the proper time had lapsed with no production.

I don't know your particular situation but your current broker may be thinking that they invested a lot of time and effort training you and teaching you the ropes and to release you after all that hard work isn't fair. That may not be the case though.

Is your current broker willing to work with you even though you've moved?

There's a lot of moving parts here and with out enough information it's hard to give you a proper response.

I actually like this Broker. My situation changed. I moved. It's a great operation unlike another I signed on with 5 yrs ago when I first entered the business. That Broker has done absolutely nothing but send me a few emails and won't release just because I have alot of production with that carrier.

In this case, the Broker really can't support me during AEP. assigning seminars, giving leads in the area, backup enrollment kits for my county...etc.

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You are clueless. Contracts signed are binding.

Actually, I am not clueless.

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Depends on what was invested in you. Did the first Agency train you, pay you during training, or otherwise spend resources on you. If so, then you need to restore the value of resources spent then request a release.

If no resources were spent, then they are a dick. Sorry you contracted with a dick.

Not at all. I attended 2 seminars over 5 months. I am 1099 on commission. No paid training. I would gladly restore value for those 2 seminars if that meant, I could walk away.

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Call them 90-100 times a day for support, then don't turn in any business.

I like it. Except, I have no time with AEP starting up.

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I understand spending time training etc on an agent but, when that's not the case, it does make you want to seek legal help...but, before all of that, you would think if someone's situation changed beyond their control, let them go.