by s_1 » Sat Jun 13, 2009 04:50 am
Why do some insurance company hire an agent as a captive sales agent. The agent can only work, and sell that company products, and the company controll the business that the agent sell. The agent get terminated and finds out the company, said that the agent was a captive sales contractor, with no wages reported to the Department of Labor, so she can not received unemployment benefits payment. Is this true, if not what could she do to receivec her benefits payment
Posted: Sat Jun 13, 2009 02:15 pm Post Subject:
Being a captive agent does not necessarily mean you are an employee. The major difference between whether you would be eligible for unemployment is wheter you were a contractor or an employee. Always ask if you will receive a W2 or a 1099 at the end of the year, and be sure to know if they are going to take taxes out. It sounds as though no taxes were taken out either.
If an individual is a contractor, then they are not an employee. Companies pay unemployment insurance and premiums (depending on state) based on wages paid to employees. If you are not an employee, normally not eligible for benefits.
Yes a captive agent is only allowed to sell that company's products and sometimes they receive other incentives to be captive. For example, sometimes the agent may have access to a book of business, company leads, training, etc. There are many different things to consider when evaluating whether to be captive or independent.
My first thought is why was the agent terminated? If it was because of lack of production, maybe insurance is not the right field. BUT if it was for some other reason (and not having to do with fraud or ethics violations), it will NOT be very hard to find another job! I would personally spend the time finding my career, and not worry about unemployment benefits.
After all, benefits are based on wages earned...so even if the agent was an employee but was fired for lack of production...the benefits wouldn't be much anyway. Not to mention the fact that if the agent was terminated for cause, she may not be eligible for unemployment in the first place!
Posted: Mon Jun 15, 2009 08:38 am Post Subject:
Hi S..
The agent can only work, and sell that company products, and the company controll the business that the agent sell.
Don't you think the company gets more opportunities to develop a rookie into an expert in the long run?
I guess this leads both parties into a long-term bonding which enhances the business prospects for the carrier as well as ensures a smooth income for the agent.
Steven
Posted: Mon Jun 15, 2009 10:37 am Post Subject:
Hi S, as Chris has mentioned a captive contractor wouldn't qualify for unemployment benefits but I'm not sure how your queries regarding hiring captive agent and a contractor not receiving UI are related. May be you would clarify the two for us.
You said she had got terminated, right? Well a lot would also depend upon her reason of termination.
~Jeremy
Posted: Wed Apr 28, 2010 04:27 am Post Subject: captive agent
I'm a captive agent...I would like to go independent. If I start building a book of business on the side what would be the potential legal ramifications?
Posted: Wed Apr 28, 2010 08:05 pm Post Subject:
In order to build a book on the side, you'll need contracts with other companies. Sometimes your captive company checks the state website to see who you are contracted with. If they see you contracted with other companies after you contacted captive, you may be independent sooner than you are ready.
Add your comment