How Do I Get Released from My FMO?
There are many reasons why an agent may want to switch their contracts to a different FMO. Reasons such as not being happy with their current FMO, being over-promised, higher commission payments, amongst other reasons. Unlike many other FMO’s, UIG has a direct approach to agents asking for a release: We’ll give it to them.
But, before you jump ship, you do have some things to consider before making the change. Asking the right questions when requesting to be released by your FMO will determine your timeline.
Black Out Periods
Carriers often set black-out periods for releases during certain times of the year, usually they are during busy times of the year like AEP. Knowing when these periods are will help you determine when you may need to ask for your release. For example, if you request a release during a black out period, typically you will have to wait until the black-out period is over before the release will occur. Since blackout rules are determined by the carrier, your FMO won’t be able to change the timelines in these cases.
Immediate Release
Most reputable FMO’s will give you an immediate release, if you ask. Timing is everything, even if you ask, if it’s during a black out period, you may still have to wait.
Request Release from Carrier
If your FMO won’t give you a release, in most cases you can go directly to the carrier to get a release, but again, timing is important. That process can still take anywhere from 3 months to 6 months.
Book of Business
Different carriers have different rules with respect to how your book of business moves or does not when you switch FMO’s. Some have rules that state the business you write with an FMO always stays with that FMO with respect to their overrides and a new FMO only gets overrides on new business written with them after moving. Other carriers have rules that state when you leave an FMO your entire book of business leaves with you and your old FMO will no longer receive any override on business you wrote with them.
As an independent agent, an FMO should NEVER ask you to sign your book of business over to them. The writing agent commission should ALWAYS BELONG TO YOU. The only exception is if you enter into a captive/career agent agreement, in which case who owns the book of business will be clearly identified in the contract and may include vesting periods etc.
Working with UIG, you will always have an immediate release. With licensed insurance agents as your dedicated Broker Sales Specialist, we don’t think you’ll want to choose anyone else. UIG provides top-notch back-office support, assistance with your contracting, 24/7 access to the Medicare Quoting Tool, marketing assistance, and much more personalized support.
If you’d like to speak to us more in depth regarding our release policy, please reach out to our Broker Sales Specialist team. Or, if you’d like to become appointed with UIG, we’d be happy to have you.
