by Chris Bantly » Sun Jun 14, 2009 07:01 pm
One of my agents came to me very upset the other day and said that he was being forced into bankruptcy. Although I didn't want to pry too much, I did need to understand why and I must say that it legitimately is out of his control. He is going through a divorce and his wife has filed for bankruptcy. Being that most of their debts are joint, his only other option is to take all the debt upon himself which would be financial suicide.
That being said, he is concerned about losing his license. I explained that you cannot be discriminated against for declaring bankruptcy. He was then worried about losing all of his contracts and that his appointments would all terminate him! I honestly can say that I have no idea whether this could happen to him or not!
I realize that it is very hard for someone with horrendous credit to obtain appointments with reputable companies, but at the same time...he has already shown that he is a good producer and has had an impeccable record! With the economic problems people are having, do you think the companies are going to be a little more lax on their requirements? Do you think he has anything to worry about?
That being said, he is concerned about losing his license. I explained that you cannot be discriminated against for declaring bankruptcy. He was then worried about losing all of his contracts and that his appointments would all terminate him! I honestly can say that I have no idea whether this could happen to him or not!
I realize that it is very hard for someone with horrendous credit to obtain appointments with reputable companies, but at the same time...he has already shown that he is a good producer and has had an impeccable record! With the economic problems people are having, do you think the companies are going to be a little more lax on their requirements? Do you think he has anything to worry about?
Posted: Wed May 26, 2010 10:22 pm Post Subject: bankruptcy
I may have to file bankruptcy : ( we have been struggling for so long and we have no choice with cc charging us 27 + interest and having to choose between groceries and bills so we may have to file I have a good job with my insurance license but if we file will I lose those??? HELP
Posted: Sun Jun 20, 2010 01:45 pm Post Subject: filing bankruptcy
i just file friday a 13 my lawyer never mentioned anything about losing commissions. he gave me a payment plan and i await a court date. after leaving allstate and going independent i needed a fresh start
Posted: Thu Dec 01, 2011 03:09 am Post Subject: Bankruptcy prior to getting license
I've been wanting to get my Insurance license for a while. I've been going through the process of preparing for taking the test in the state of Florida(Life, Health, and Annuities). Unfortunately, I am having to declare bankruptcy due to excessive credit card debt totalling $35,000. Right now, I am a freelance Videographer, operating as an LLC. Is it still possible to get my insurance license?
Posted: Fri Dec 02, 2011 03:50 am Post Subject: chapter 7
I Own a branch of Insurance and was forced to file chapter 7 just about 2 years ago ( an old business endeavor caught up to me). I was two years into my NEW agency when i filed and the trustee decided to NOT go after my commissions.. He even said it is very very rare that a trustee will go after your commissions if at all. A BK is supposed to help you, not hurt your future earning power..
My lawyer told me not to sweat it and he was right, but it is nerve racking going through the whole process. I've never been so nervous in my life
Posted: Fri May 11, 2012 05:00 am Post Subject: BK
Hello, I am a new insurance agent and its in my best interest to file a BK. Will I lose my series 6 license? Will I not be able to get appointed with other insurance companies? and if no for how long?
Posted: Mon Oct 29, 2012 11:04 am Post Subject: Bankruptcy Impact On Agent!
If you think that these are the needs of bankruptcy than you should go for it. But first you should make sure that you have filed a bankruptcy or not. In your case, an agent is also involved so you need to consult a lawyer.
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Posted: Tue Feb 05, 2013 06:26 pm Post Subject:
I am in NY I received a agent contract to sell insurance thru a company, sold a insurance poilcy they accepted my sending it in, then they did a credit check and found out I was filing bankruotcy it is probably being dismissed so not a declared bankruptcy and had a low credit rating.Now they say they are canceling my contract but not till after i sent in the policy I sold , then said that my contract was canceled but not till March 7, I wrote the policy in January They are still processing the policy the appliccant needed a Port-a Med visit, the policy is still being looked at.and probably will be issued. Can they cancel my contract after I have been with them and sold a policy.
Posted: Tue Feb 05, 2013 08:11 pm Post Subject:
Can they cancel my contract after I have been with them and sold a policy.
Absolutely! And chargeback any commissions advanced, too.
Posted: Sat Jul 27, 2013 06:15 pm Post Subject: bankruptcy impact on licensed agent
I just got hired by a large insurance company as a Telesales captive agent to sell health insurance. I'll be assigned to sell in multiple states. I may have no other choice but to file Chapter 7 bankruptcy. Can this cause me to lose my appointment with the insurance company and my license with my home state and non-resident states?
Posted: Sun Jul 28, 2013 06:54 am Post Subject:
Each insurance company and each state has its own policy concerning matters such as bankruptcy. There is no standard answer to your question. Bankruptcy, from a state regulator's point of view is an integrity issue, and being in personal financial straits could result in violating various laws, including theft of customer funds to pay one's own bills. It is not unreasonable for an insurance commissioner to deny or revoke a license under the premise that it would be "against the public interest" to issue a license to a person who has a bankruptcy. Does this happen often? No.
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