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...f no avail to the agency.' Hardin County Farm Bureau v. Farm Bureau Mutual Ins...

...br>When I took my daughter to the county fair recently I must’ve heard "everyb...

...s Remedial Business 101 at Dallas County Community College. And yet, these are...

... The 13-month period is not really as short as it seems because it effectively gets the parties through two policy-renewal periods. A caveat: Each case is distinctive, since it has its own set of circumstances. Territory. Whether the restriction is reasonable in the area of restraint is a more difficult question for the courts to determine. The area of restriction is usually described in a mile radius or a county area. In determining what would be fair to both parties, two additional factors must be considered. The first is the population of the area of restraint. If the agency is located in a rural area, having a large restricted zone may be justifiable- for example, a 50-mile radius. On the other hand, if the agency is located in a metropolitan area, a 50-mile radius ... complete understanding of these local laws is essential. The advice of local counsel can be invaluable. The second issue that must be considered is whether the seller is a risk to the buyer if the covenant is broken. The seller must have the ability to compete, or the covenant itself is a tax covenant rather than a restrictive covenant. An insurance agent, as a rule, would have a fairly high degree of ability to compete. This ability can be reduced, however, by old age or other factors. Even if competition is possible, consideration must be given to the consequences of using the former agency name, the files, and other such items that would enable the seller to compete. For example, an 86-year-old man who is terminally ill and whose insurance files are in a ...

...y described in a mile radius or a county area. In determining what would be fa...

... , as opposed to one functioning under the American Agency System, does not own the records in the hands of the Agent, and where the Agency contract with a direct-writing company specifically provides that records shall be returned to the company upon demand, proof of the customs under the American Agency System that the Agency is the owner of records and expirations is of no avail to the Agency." Hardin County Farm Bureau v. Farm Bureau Mutual Ins. Co. 341 S.W. 2d 62 (KY. 1960) . A final case shows that agents in a contractual relationship who attempt to compete or interfere with the company and refuse to return records are not entitled to termination benefits: "Where the Agency contract provided for payment of termination benefits provided that the Agent returned records and files, and ... . Note: Many of these right-of-first-refusal agreements stipulate that the producer must submit any and all offers from other parties to the agency in order for them to assess the third party offer. A different ownership relationship exists for captive agents or direct writers, under which the company owns the expirations. C. CAPTIVE AGENT AGREEMENTS: It's been our experience that captive agents don't have the ability to transfer the fair market value of their book of business in the same manner as independent agents. Stipulations in their contracts prohibit such transfers. We've been involved with several direct writers who receive business through captive agents. They're often described as independent contractors who have the right to operate their own business, but do not have ownership in the book of business. Sometimes a captive agent will claim ownership of expirations, ...

...vail to the Agency.” Hardin County Farm Bureau v. Farm Bureau Mutual Ins...

...the following Chambers: Dougherty County, Lee County, Crisp County Educational programs for the comm...

... in the Sales and Marketing' section. Advertising: Simple newspaper advertisements can put your name in front of hundreds or thousands of prospects. Use the ad to focus on one campaign your agency is performing or as a general information ad. Also consider radio and television advertising. While these may be more costly, you may find they generate calls from the people you want to reach. City and county files: Look through city and county files for names of people who have recently purchased property in your area. You can also discover who has applied for a business license. &# 160 SALES STRATEGIES There are a number of ways to sell Excess-Interest Whole Life insurance. Here are some suggestions: Make it the agency's goal to let every current Personal and Commercial Lines client know about Excess-Interest Whole ... projected interest rates remain the same, the policyholder may be able to stop paying premiums after a certain projected period while the interest rate takes over the payments. On the other hand, if the interest rate drops before the premium is set to vanish, the premium won't vanish. If the interest rate drops after the premium has vanished, the premium may reappear. PROS Excess-Interest Whole Life is a fairly simple product for agents to explain to prospects. Its interest-sensitive nature is also a plus for clients, who benefit from its tax-free (or tax-deferred) fund accumulation, and agents, who benefit from having satisfied clients. CONS The lack of flexibility makes Excess-Interest Whole Life less attractive to clients than, for example, Universal Life. This lack of flexibility also applies to fund withdrawal. Excess-Interest Whole ...

... the business on the agency's books. The agency can deduct the payments. 2.2.4. Covenants not to compete. If an owner is selling the entire interest in an insurance agency business and its good will, or a partnership interest or stock in an insurance agency business, the situation is totally different. The buyer may lawfully obtain a covenant from the seller not to compete with the buyer in those counties in which seller did business, so long as the buyer or someone taking title from the buyer is conducting an insurance agency business in those counties. Bus. & Prof. Code Sections 16600-16602. This eliminates the antitrust problems that exist for non-owner producers. 2.2.5 Protecting expirations and other trade secrets. Anti-piracy agreements, most frequently made a part of employment agreements, are needed to protect ownership of ... status, age, or other statutorily established public policy reasons. Dismissals or resignations arising out of sexual harassment are presently the subject of much litigation. Improper harassment claims put the agency in a particularly difficult position, since it may face a claim by the complaining party if it does not stop the harassment, but also may face a claim by the other party if that party is not given procedural fairness. If there has been an advance against commissions that was not earned, one case has held that an express agreement to repay them will be enforced. Kerry of California v. Lefkowitz (1955) 131 Cal.App.2d 389, 280 P.2d 910. Many contracts provide for offset of amounts owed by the employee against amounts owed by the employer, under C.C.P. 431.70. One case has held that ...