Mega Life And Health Insurance Company ex-employee asked to repay advances? Ozark Alabama

I do understand what i signed and ofcourse its my responsibity to repay the advance, or so it seems. You have to ask yourself what kind of company would not tell this kind of information up front. I was hired along with 5 other agents and we were just given a hiring package and told to sign here, here, and here and so on. I mean this is a big deal and something everyone should be notified of prior to employment.

After speaking with another still current agent with MEGA I was told of an former agent who wrote a great deal of business and quit after around a year and when and replaced all or most of the business he wrote - which I do not condone that - and subsiquently shot himself in the foot and now he owes around 37,000 or so. His credit is now destroyed and can no longer be appointed with any other companies. Im sure he wishes he knew in detail about how the advances worked once you have have left the company.

thanks,

John is correct about everything and when you read the paperwork you sign when starting up it is fairly clear. UGA is happy to negotiate the payment of your balance. I am newly a former agent and got my $3000 balance down under $1000. I don't plan on bashing MEGA and UGA either, although I could, but I will just say that when I asked my two managers before I started what would happen if I left, their only reply was that I would get paid on all of my renewal business and I could be getting checks from UGA for a while. That's agood one......

As you know, while with UGA you got paid on submit. Although this method of pay might have seemed nice at first, you now realize the horrible liability it poses should you leave before your account clears.

You got paid just for turning in applications. Any application that didn't get issued, didn't get accepted or fell off the books before the advance could be earned goes to your debt account.

Yes, new sales that stay on the books will help lower your debt balance. But when you quit, UGA uses a formula and they can predict with good accuracy whether or not you have enough deals on the books to offest your debt balance. In your case you don't. If your case UGA predicts that even when the good deals stay on the books you'll still have a negative balance of over $5,000 and unfortunately you'll have to pay this.

If you fail to pay it Mega Life could put in you what's called a Vector report. That means other insurance companies can see that you still owe money and they may choose to not appoint you. On top of that, UGA can get a judgement that will greatly affect your credit.

I'd contact UGA immediately and work out some type of payment plan.

And for all Mega agents who are not too happy and possible looking to quit - ask your manager if you're in a forumla gain or formula loss. Also ask what your current debt balance is.