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Insurance Business | 08 Aug 2017, 09:57 AM Agree 0
A federal judge has ruled that thousands of insurance agents are regular employees, not contractors
  • eric malkin | 08 Aug 2017, 01:52 PM Agree 0
    Asan ex insurance agent I believe this ruling is wrong and will be reversed on appeal
  • JLGJ | 08 Aug 2017, 02:00 PM Agree 0
    Really - are Am Fam agents allowed to sell for other carriers? Can they sell have contracts with MGA's other carriers or are they restricted to only AM Fam products? How does AM Fam pay commissions, to a corp or dba or to the name of the individual producer? What taxes are taken out of the commissions for the Am Fam producer? Having seen an IC producer contract they are generally in violation of the 20 Rule IRS employee definition.
  • x1099 | 08 Aug 2017, 04:26 PM Agree 0
    As an ex AmFam agent, I can say unequivocally that the agents are treated as employees. I personally was dictated office hours, given explicit direction on sales practices, was only allowed to sell AmFam products in their channels, had control exerted over my staffing choices, was forced to implement selling procedures and practices in my agency, multiple required reporting....on and on and on. And was explicitly told on countless occasions that my firing would result in deviating from those. All this over 18 years and multiple trips won, diamond rings, etc etc as I produced.

    Our contract appeared to lean towards us having control over all aspects of how we did business. But the reality of daily life as an AmFam agent was vastly different.
  • JAC | 08 Aug 2017, 11:38 PM Agree 0
    If you were not an American Family Agent, you have no clue what you are talking about. I was and we were treated like employees in every way, except given no benefits and paid 1099 wages. We were told what to sell, how much to sell, who we could hire, how we could advertise, when we were to work and more. If you did not follow the District Managers or Companies rules you would be threatened with termination.
  • Philip Davenport, SC | 11 Aug 2017, 02:44 PM Agree 0
    I was with SC Farm Bureau for 12 years. Was treated exactly as you described above. Office hours were mandated, meetings were mandatory, you were told where to be, how to act, etc. We were captive agents with SCFB so we could not sell any other products (unless expressly through the SCFB channel). We had production requirements in order to keep our contract, and I too won all the European trips, won the diamond ring, etc., etc.

    I personally sat in an interview where a new agent was being processed. The district manager was going over the contract with the new agent. When he got to the "independent contractor" language, he said, "this only applies to the way you get paid. We don't withhold taxes nor do we provide any benefits, but for all other purposes you are our employee". I couldn't believe what I was hearing! I know my mouth fell open when he said that.
  • Former Agent | 12 Aug 2017, 05:36 PM Agree 0
    It's about time! State Farm, Allstate, Farmers and Nationwide need to take notice.
    • OmniSure | 15 Aug 2017, 06:08 PM Agree 0
      When State Farm starts paying their Captive "Independently Contracted", "Agents" as W-2 direct employees, then I'll start paying my producers as W-2 employees. Oh, and what about the Health Market's Health Agents selling med sups and Obama Care and Small Group? They are all Independently Contracted "Captive" agents? What about the AFLAC "Agents"? They are 1099 too... This age old question is still not answered for me and many others... What say Y'ALL?
  • 20 yes in Ia | 13 Aug 2017, 07:49 AM Agree 0
    As an American Family Agent I was asked to be in my office, sell policies, take care of the clients and make sure they know that they are important. We I first started I knew I was expected to sell, and that my pay would come as a 1099 once a month. After several years of service I would earn some extended earnings when I left the company. This was not a hidden secret, my thoughts were I own a business start saving for retirement if I want funds, annuities, whole like with cash that will. E paid for by retirement, munipal bonds that are tax free. Employee or contractor aren't we responsible to ourselves as well. Along with selling and. Ring paid there is always a sales contest that can get us many different levels of nice perks, from a sweatshirt, a watch several amazing trips. Sorry happy old fart
    with my job
  • Joe Gordon | 16 Aug 2017, 11:20 AM Agree 0
    Are they NOT statutory employees, under IRS code section 3121, on memory? File business expenses on schedule C, but wages reported on W-2 with coverage in retirement plans sponsored by insurer.
  • Fitch001 | 17 Aug 2017, 12:28 AM Agree 0
    I think it's will have influence on our life.
  • Renee | 21 Aug 2017, 03:43 PM Agree 0
    As a former American Family Agent also. You are an employee. I was hired in 1993 and told before I actually opened my office that this was "my business". I could work as hard at I wanted, hours, phone calls etc. As soon as I signed the contract my manager was telling me what my office hours needed to be, how many cold calls to make and I had to keep track of who I called and when, what their responses were, etc. I was told how many policies I had to write each month and the breakdown of policies. Within in a year of getting hired my 5 year old got pneumonia, but I was scheduled to go to a training session in Madison, WI and was told I was EXPECTED to be there or I could be fired. Commissions were cut a couple different times in the 10 years. Even tho they stressed how important family was, after my Mother was injured in a very serious car accident (not her fault) and in the hospital for 7 weeks ( almost lost her a couple times), again I was told that I needed to be in my office, not running to be at her side 2 days a week. So after 10 years and many threats from my manager for NOT writing enough business, even tho I started out with ZERO policies and ended after 10 years with well over 1000, I had enough!
  • Paul | 21 Aug 2017, 06:24 PM Agree 0
    I agree. I was an AmFam agent for 24 yrs and they said it was your Agency, but in all reality, this was only so AMFAM would not have to pay expenses related to an employee. They could limit your ability to hire the staff you wanted, mandatory reports and meetings....I could go on and on. I believe the ruling was correct and hope for some reason, AMFAM is not successful in an appeal. The only problem I have with this is the Policyholders will end up paying more and not those responsible...Management at all levels of American Family Mutual Insurance.
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