The Company Agency Compliance Review

The following is a list of Business Rules that are followed by The Company Agency Compliance Review Unit as it pertains to the following areas:

Industry Professionals joining The Company:

  1. Members joining The Company that carry direct appointments with insurance providers that offer a competing class of product to that of The Company will be permitted to keep these appointments for the purpose of passive income and to be paid on current business that was submitted prior to joining The Company only. Failure to comply could result in further action up to and including termination for cause of the contractual relationship with The Company and its affiliated companies.
  2. All “Committed Members” are prohibited from being affiliated with companies other than The Company and its affiliates.
  3. Other than 1 above no other direct appointments for passive income will be permitted after The Company start date. No existing direct appointments with providers for the purpose of selling a competing class of product will be permitted after either (1) The Company start date and once a Member is licensed and appointed with one or all Product Providers and/or (2) a period of 6 months after the MA start date, whichever is shorter. No new business with the competing classes of products shall be written or solicited after meeting the above described licensing conditions or time period.
  4. New direct appointments with a provider that offers a non-competing class of product must first be approved by The Company Agency Compliance by submitting The Company OBA Form.
  5. Those wanting to join The Company may be affiliated with another insurance agency for a period of up to six-months maximum in order to transition existing client business and/or relationships. However, no new sales are permitted during the six month period. Members are then required to cease affiliation with an outside insurance agency other than The Company. The only exception to this rule is for Members affiliated with another insurance agency where the products offered are P&C, Health, and Disability only and the affiliation is approved by The Company Agency Compliance.
  6. Applicants who are currently working as financial planners or advisors will not be accepted by The Company as active Members and cannot represent themselves as financial planners or advisors.

Representatives with Broker Dealers other than The Company affiliated Broker Dealer:

  1. The Company Members may not be affiliated/registered with a Broker Dealer other than The Company affiliated Broker Dealer, if applicable, at any time.
  2. Should a Member, whether voluntarily or with reason, terminate from The Company and be eligible to sign a “Remain with The Company” form they are prohibited from becoming affiliated/registered with another Broker Dealer at any time.
  3. Any Member who is terminated “for cause” from any The Company affiliated company will not be eligible for reinstatement to The Company.

Representatives with Registered Investment Advisors:

  1. A member of The Company may not be affiliated/registered with a Registered Investment Advisor (RIA) other than The Company affiliated RIA, if applicable, at any time.
  2. Should a Member, whether voluntarily or with reason, terminate from The Company affiliated RIA, if applicable be eligible to sign a “Remain with The Company” form they are prohibited from becoming affiliated/registered with another Registered Investment Advisor at any time.
  3. Any Member who is terminated “for cause” from The Company, or any of its affiliates will not be eligible for reinstatement to The Company without special authorization.

Outside Business Activities (OBAs): (NOTE – not all approved/unapproved activities are discussed below.)

  1. Under no circumstances may The Company Members offer financial services that require a fee be paid directly to a Member.
  2. The Company Members are in no way permitted to present themselves as financial planners/advisors. Therefore, Applicants wishing to join The Company who currently offer these services will be required to cease offering these services.
  3. The Company Members that wish to conduct mortgage origination activities may do so with the mortgage company of their choice. All Members that choose to work with mortgage companies must comply with outside business activity procedures and provisions of the Membership Agreement.

* Failure to adhere to the rules mentioned above may result in disciplinary action up to and including termination of the members Membership Agreement.
* Rules subject to change at the sole discretion of The Company without advanced notice.