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  • Writer's pictureEmily White

New Agent Onboarding & Carrier Contracting

As you decide to build and grow your agencies, it's prudent to discuss wise decisions to make for your new agents. Let's start with choosing carrier contracts when onboarding...

FIRST, and MOST IMPORTANTLY: PLEASE BE SURE YOU (or your administration) are entering the CORRECT CONTRACT LEVEL from the start! Per carrier request, there is a 30 to 60-day waiting period between contract level changes. This can be very frustrating for a new agent and oftentimes can affect their first commission payouts as well.

Next, regardless of the administration completing the contracting for your group, it is our recommendation that you contract a new agent with no more than 5 carriers. There are several reasons for this recommendation, but here are the primary reasons:

- For a new agent, it can be extremely overwhelming to have a large portfolio that they have no real direction as to how to practically implement. Confused people do nothing.

- Most carriers have a Lack of Production (LOP) termination trigger after 6 months. And many of them will not even consider a re-contract request for 12 months after that termination.

- There is a true cost for every contract submitted that is not currently being passed on to our agents or managers. These are completely wasted dollars we incur time and time again when LOP terminations happen regularly.

- As of today, these are the core carrier contracts we recommend for your new agents:


Mutual of Omaha

CVS/Aetna (or American Amicable) for Final Expense products


Now, let's discuss 2 more policies you may not be aware of when on or offboarding an agent.

1. 7:30:6 Free Agent Change Policy (see attachment below).

Download PDF • 56KB

2. Equis Financial Releases: Equis Financial is not a captive IMO and does not grant releases. If an agent has already initiated contracting with certain carriers, s/he may be able to call them individually and ask if they'll cancel a pending contract, but otherwise, s/he will have to wait the time period required by each carrier to move to another IMO. The industry-standard wait time is generally 6 months.


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