by Guest » Wed Sep 01, 2010 05:46 pm
Please Help! I am a newly licensed agent and obviously have a lot to learn. I am thinking of signing with an FMO. I understand that they keep me up to date and as mentioned some companies will not contract with you directly.
Questions:
Could someone explain the whole down line structure and compensation?
I have the paper work to sign with Humana from this FMO, and in their packet is an Agent Business Transferral Form. That basically in my mind says I am transferring my commissions to some company I’ve never heard of. Why! Could someone please explain?
Questions:
Could someone explain the whole down line structure and compensation?
I have the paper work to sign with Humana from this FMO, and in their packet is an Agent Business Transferral Form. That basically in my mind says I am transferring my commissions to some company I’ve never heard of. Why! Could someone please explain?
Posted: Thu Sep 02, 2010 04:07 am Post Subject:
Essentially, you're saying in the agreement that you don't have the skills or experience to do most things on your own. You are making the FMO "your agent" in the submission of applications and receipt of commissions. The FMO takes from your commissions that which it believes is just compensation for training a novice.
The bigger issue is whether your "book of business" is yours or theirs. I would read the agent agreement carefully to find the answer to that question.
Posted: Tue Sep 07, 2010 02:31 am Post Subject:
Actually, that may be very difficult to discern by reading the agreement (lots of people like to make that as complicated as possible). When Max says who owns the business, he means if you leave, do you get paid the renewals on the business, and are there any restrictions on your ability to do business with the client (mostly concerned with making changes to that business). Additionally, but to a lesser degree discussed by most agents. Will you still have access to account management of that existing client.
Posted: Fri Sep 10, 2010 12:03 pm Post Subject:
The bigger issue is whether your "book of business" is yours or theirs.
Max, would you like to add anything more than what BNTRS has mentioned in the previous post?
Will you still have access to account management of that existing client.
How often is that possible?
Add your comment