Is it possible to become independent from Smart Choice?
Posted: Mon Oct 24, 2016 8:21 am
I am in a process of acquiring existing IA which 80% of their book of business is under Smart Choice.
I read their contract and there are several clauses that makes very hard to get directly appointed and also to sell in the future. I was wondering if those IA's who started under Smart Choice stay with them indefinitely.
Their non-compete clause makes it impossible to obtain direct appointment from the same company for 2 years - meaning that I need to move those customers to another company for 2 years and then move them again back to the company A.
In addition, SC agents cannot transfer(sell?) to another agents using the same insurance carrier or facility meaning that the buyer should be a newbie with no lines and willing to stay with SC.
I am not sure how those agents under SC become free and sell their book of business in the future.
Am I missing something?
Thank you.
I read their contract and there are several clauses that makes very hard to get directly appointed and also to sell in the future. I was wondering if those IA's who started under Smart Choice stay with them indefinitely.
Their non-compete clause makes it impossible to obtain direct appointment from the same company for 2 years - meaning that I need to move those customers to another company for 2 years and then move them again back to the company A.
In addition, SC agents cannot transfer(sell?) to another agents using the same insurance carrier or facility meaning that the buyer should be a newbie with no lines and willing to stay with SC.
I am not sure how those agents under SC become free and sell their book of business in the future.
Am I missing something?
Thank you.