Family First Life, LLC (FFL) is an independent insurance marketing organization (IMO). The complaint for this class action alleges that FFL attracts agents by promising them freedom from certain restrictions, but that it later tries to impose similar restrictions. The complaint also alleges it sells “leads” to the agents, but that they are not “fresh,” as advertised.
The complaint outlines an IMO insurance-selling system this way: An IMO contracts for various insurance products with insurance companies or “carriers.” It then recruits independent contractors as agents to sell the products to consumers. Agents usually sign agreements with the IMO and with individual carriers whose products they offer. When agents sell an insurance product, they receive a commission. Once agents become vested, they also receive a commission when a customer renews a policy.
FFL, the complaint claims, says it does not require agents to sign contracts. For example, the complaint quotes the FFL website as telling prospective agents that “we don’t believe there is any reason to sign a contract with an IMO.” It also quotes an FFL YouTube video as promising, “You can come and go as you please” and it quotes another as promising that agents are vested immediately.
But the complaint alleges that the promises are false. The agents’ contracts with the carriers, the complaint claims, specify that if agents want to move to a different IMO, they may do so as long as they obtain a release from their current IMO. But FFL refuses to simply sign such releases, the complaint claims. Instead, the complaint alleges it requires that the agents first sign a contract that “includes onerous non-compete and non-disclosure clauses that eliminate[] an Agent’s ability to transfer his/her book of business elsewhere.”
The complaint calls this “an unreasonable restraint of trade[.]”
Also, FFL offers to sell agents leads. The complaint alleges that FLL claims the leads are “exclusive,” “fresh[,]” and “newly generated” and have “never been used.” But the complaint claims that, in reality, “the leads are not newly generated but have been recycled several times over” and that “the list is comprised of people who are not even looking for insurance.”
Three classes have been proposed for this action:
- The Nationwide Class is all persons in the US who enrolled with FFL and who bought leads from FFL.
- The California Class is (1) all persons in California who enrolled with FFL as an agent and who submitted a release to be signed by FFL, but FFL refused to sign, or (2) all persons in California who enrolled with FFL as an agent and who bought leads from FFL.
- The Texas Class is all persons in Texas who enrolled with FFL as an agent and who submitted a release to be signed by FFL, but FFL refused to sign, or (2) all persons in Texas who enrolled with FFL as an agent and who bought leads from FFL.
Topic: Contract
Most Recent Case Event
Family First Life Insurance Agents Restraint of Trade Complaint
June 3, 2022
Family First Life, LLC (FFL) is an independent insurance marketing organization (IMO). The complaint for this class action alleges that FFL attracts agents by promising them freedom from certain restrictions, but that it later tries to impose similar restrictions. The complaint also alleges it sells “leads” to the agents, but that they are not “fresh,” as advertised.
Family First Life Insurance Agents Restraint of Trade ComplaintCase Event History
Family First Life Insurance Agents Restraint of Trade Complaint
June 3, 2022
Family First Life, LLC (FFL) is an independent insurance marketing organization (IMO). The complaint for this class action alleges that FFL attracts agents by promising them freedom from certain restrictions, but that it later tries to impose similar restrictions. The complaint also alleges it sells “leads” to the agents, but that they are not “fresh,” as advertised.
Family First Life Insurance Agents Restraint of Trade Complaint