What is the Definition of an Open Release?

[HoosierLife]

I know this phrase gets tossed around a lot. Make sure they offer "open releases."

What would you say is the definition of an open release?

Is this different from a reciprocal release?

 

[Josh]

It's a term that gets tossed around just cuz. It's only an industry term because it was concocted on this forum. A lot of the recruiters around here will use that term because it's what people use on here, but if you call up most large shops that have never heard of the forum or carriers they have no idea what it means other than guessing.

A reciprocal release on the other hand IS normal and that means that they'll agree to release agents to each other.

 

[GoPokes]

It's like a closed release, but different. Lol

But seriously, when we contract, we have to sign all these forms for the IMO, I'm surprised we agents haven't come up with our own form/contract that we ask the IMO to sign agreeing to an open release. I often hear agents, including myself, just taking the IMO for the word, aka a verbal agreement. Then we get upset later when it's not honored the way we remember it.

 

[ZackMorris]

You know, I don't think I signed anything directly for the IMO other than the scaling commission recapture for leads. Everything else was direct with each carrier.

Does that technically mean I can pack my bags and go whenever?

 

[Josh]

You know, I don't think I signed anything directly for the IMO other than the scaling commission recapture for leads. Everything else was direct with each carrier.

Does that technically mean I can pack my bags and go whenever?

Nope, which is a legitimate problem with the whole system. Carriers have their own policies about such things and it's rarely disclosed to the agent, even unless you ask.

 

[WinoBlues]

Nope, which is a legitimate problem with the whole system. Carriers have their own policies about such things and it's rarely disclosed to the agent, even unless you ask.

Very wrong, yes. System wide, not so much. ~Much~ more of an issue with FE only carriers and IMOs than traditional Life Insurance Companies. With traditional carriers you just get another contact number. Asking if I can please leave or having someone control where I work goes against my independent soul.

 

[jdeasy]

Very wrong, yes. System wide, not so much. ~Much~ more of an issue with FE only carriers and IMOs than traditional Life Insurance Companies. With traditional carriers you just get another contact number. Asking if I can please leave or having someone control where I work goes against my independent soul.

And also being held to a contract that you never agreed to or were even told about. Needing a release is a dirty deal between the companies and the IMO's.

The IMO's get blamed but the companies are just as guilty. Even moreso since they are the ones that won't contract you.

It's even more of an issue with MA and med sups than with FE. There's plenty of FE companies if you are forced against your will to honor a contract you didn't agree to, but the number of competitive med sup and MA plans is limited.

Any IMO that won't release are dirty rotten, lying, no good SOB's. And anyone that thinks it's OK to not release is even worse.

 

[Newby]

I know this phrase gets tossed around a lot. Make sure they offer "open releases." What would you say is the definition of an open release? Is this different from a reciprocal release?

Generally the releases require an accepting agency to release the agent back if he chooses and to accept any debt responsibility from the day of the transfer forward.

With us we are only concerned with the debt transferring. We could are less if the new agency releases agents or not.

 

[Chase Urich]

Generally the releases require an accepting agency to release the agent back if he chooses and to accept any debt responsibility from the day of the transfer forward. With us we are only concerned with the debt transferring. We could are less if the new agency releases agents or not.

Current debt transfers but any business that the up line received an override on will always be a potential liability for the releasing IMO if the business falls off. Releases can come in a few different forms. Doesn't always have to be a reciprocal release or straight release in every scenario. That is a preference by the releasing or accepting IMO. Some carriers don't care either way while others do. For example Americo does not accept a reciprocal release. Some carriers will take an email from the current up line as a release.

 

[WinoBlues]

Current debt transfers but any business that the up line received an override on will always be a potential liability for the releasing IMO if the business falls off. Releases can come in a few different forms. Doesn't always have to be a reciprocal release or straight release in every scenario. That is a preference by the releasing or accepting IMO. Some carriers don't care either way while others do. For example Americo does not accept a reciprocal release. Some carriers will take an email from the current up line as a release.

What a bunch of bullshit, that sounds worse than our current political system. Why can't the agent just move wherever whenever they choose? In Life Insurance, if I put a Protective case through Pinney I can put another through a different imo the same day with one of my multiple Protective numbers. I am Independent. If I have a chargeback with Pinney, Pinney and I deal with it. It does not affect my other Protective business. Notice I say _my_ because it is my business.

BTW, I am not directing all this at you specifically.