Where Can I Get a Sample of a Upfront Release Letter?

[yogooglethis]

I searched this website first then I went out on the line and searched the world wide web looking for a sample of an upfront release letter from an FMO contract and found nothing.Is there such a thing ? I guess i could just write it myself but I want to make it contains the wording that would hold up legally if it came to that.

 

[WinoBlues]

I searched this website first then I went out on the line and searched the world wide web looking for a sample of an upfront release letter from an FMO contract and found nothing.Is there such a thing ? I guess i could just write it myself but I want to make it contains the wording that would hold up legally if it came to that.

Ask the IMO you are looking to go with. The more words the more you better worry.

 

[Josh]

I searched this website first then I went out on the line and searched the world wide web looking for a sample of an upfront release letter from an FMO contract and found nothing.Is there such a thing ? I guess i could just write it myself but I want to make it contains the wording that would hold up legally if it came to that.

If you're that worried about it you should pay a lawyer to write one up for you. It isn't really standard business practice, just something a lot of folks on this forum advocate. Realistically if you work with uplines with a strong reputation you can avoid the mess in the first place, but what you're talking about is a contract and each state can have it's own nuances which is why it's best to have an attorney write it up.

 

[CALTCAgent]

I searched this website first then I went out on the line and searched the world wide web looking for a sample of an upfront release letter from an FMO contract and found nothing.Is there such a thing ? I guess i could just write it myself but I want to make it contains the wording that would hold up legally if it came to that.

I like something like this:

I agree to release Joe Agent whenever the agent requests a release. They must have no outstanding debt at the time.

Have the person with the authority at the FMO sign it. You can usually get released with a letter like this.

If they put too much more than this, they will usually be looking for an out to not release you.

Not sure if that will hold up legally. It usually accomplishes the goal of getting released.

 

[yogooglethis]

I like something like this:

I agree to release Joe Agent whenever the agent requests a release. They must have no outstanding debt at the time.

Have the person with the authority at the FMO sign it. You can usually get released with a letter like this.

If they put too much more than this, they will usually be looking for an out to not release you.

Not sure if that will hold up legally. It usually accomplishes the goal of getting released.

Does it make any difference or complicate things if I am asking for an upfront release from a contract where I would be assigning commissions to the FMO ? I never thought I would even consider assigning commissions but this a guy I know on a somewhat personal level who is a partner in the FMO. He is giving me an MGA contract without any production requirement because he wants me to recruit agents.

 

[GreenSky]

Does it make any difference or complicate things if I am asking for an upfront release from a contract where I would be assigning commissions to the FMO ? I never thought I would even consider assigning commissions but this a guy I know on a somewhat personal level who is a partner in the FMO. He is giving me an MGA contract without any production requirement because he wants me to recruit agents.

If you assign you've lost your commissions when you leave. The clients are not yours.

As far as a pre-nup release letter, just ask the FMO for letter guaranteeing release upon request. A lawyer is not necessary.

Rick

 

[Newby]

Does it make any difference or complicate things if I am asking for an upfront release from a contract where I would be assigning commissions to the FMO ? I never thought I would even consider assigning commissions but this a guy I know on a somewhat personal level who is a partner in the FMO. He is giving me an MGA contract without any production requirement because he wants me to recruit agents.

Assigning commissions and recruiting agents are both red flags. You are smart to try to protect yourself. Why are you going down that path to begin with?

There are at least 3-active forum IMOs who definitely release, give 110-115% contracts to all agents with no production requirements and will steer you the right way. Assigning commissions is definitely the wrong way. Recruiting agents is wrong 99% of the time.

 

[CALTCAgent]

Does it make any difference or complicate things if I am asking for an upfront release from a contract where I would be assigning commissions to the FMO ?

I don't think it matters. I think it is less complicated in that in case it doesn't work out, you can go back to not assigning commissions or whatever you want to do with your business.

I never thought I would even consider assigning commissions but this a guy I know on a somewhat personal level who is a partner in the FMO. He is giving me an MGA contract without any production requirement because he wants me to recruit agents.

I really hate the thought of assigning commissions. So many FMO's in the MA world want that in my area.

I don't understand why one requires it and another doesn't. I have been told they won't get paid if the agent does not re-certify as a main concern. Otherwise why would they want the hassle of paying commissions.

 

[Josh]

Does it make any difference or complicate things if I am asking for an upfront release from a contract where I would be assigning commissions to the FMO ? I never thought I would even consider assigning commissions but this a guy I know on a somewhat personal level who is a partner in the FMO. He is giving me an MGA contract without any production requirement because he wants me to recruit agents.

If you want to stay friends, I wouldn't do it. I can't think of any reason to not get paid directly from the carrier. The guy might think he's doing you a solid, but there are tons of marketers on here that would happily give you a contract with enough meat on the bones for you to recruit agents and without a production requirement.

 

[yogooglethis]

I like something like this:

I agree to release Joe Agent whenever the agent requests a release. They must have no outstanding debt at the time.

Have the person with the authority at the FMO sign it. You can usually get released with a letter like this.

If they put too much more than this, they will usually be looking for an out to not release you.

Not sure if that will hold up legally. It usually accomplishes the goal of getting released.

Does it make any difference or complicate things if I am asking for an upfront release from a contract where I would be assigning commissions to the FMO ? I never thought I would even consider assigning commissions but this a guy I know on a somewhat personal level who is a partner in the FMO. He is giving me an MGA contract without any production requirement because he wants me to recruit agents.