How to join an IMO: the questions to ask before you sign

What does it mean to join an IMO?

Joining an IMO means you sign an agent agreement with an insurance marketing organization. The IMO then helps you get contracted with carriers, and often supplies training, leads, and support. The carrier still issues the policy and pays the commission.

An IMO sits between you and many carriers. Each carrier has its own rules. The IMO negotiates contract terms, passes them to you, and may keep part of the carrier’s pay as an override. That is how most IMOs earn money. Read IMO vs FMO vs MGA if the terms are new to you.

Epic Life Group is an independent life insurance agency, not an insurance company. It works as an IMO-style agency. Policies come from the carriers it is contracted with. Epic Life says it has contracts with about 110 carriers.

You are not choosing a job in the usual sense. You are choosing a business partner. The agreement you sign controls how you get paid, what you owe, and what you keep if you leave. So ask hard questions first.

What should I check before I talk to an IMO?

Check three things before any call: the license, the model, and the reputation. Each takes less than an hour. Skipping them is the most common mistake new agents make.

• License. Look up the agency and its principals on the state department of insurance site or through NIPR. An active license and a clean record are the minimum.
• Model. Find out whether the IMO makes money from policy sales or from recruiting. A legitimate agency earns overrides on policies sold to real customers. See overrides and downlines.
• Reputation. Read agent reviews with care. A few angry posts prove little. A pattern of the same complaint, such as surprise charges or blocked releases, proves more.

Also ask how the IMO describes income. If a recruiter quotes big numbers, ask for the source. Epic Life does not publish income figures, averages, or ranges. Pay depends on production, lead spend, chargebacks, and contract level. A recruiter who says otherwise should show you proof.

What are the questions to ask before signing?

Ask these ten questions, and ask for each answer in writing. The table below shows what to ask, why it matters, and what Epic Life says today. Where Epic Life has not published a term, the table says to ask.

A clear IMO answers every row. Notice that some Epic Life answers say “ask us.” That is deliberate. Terms such as chargeback rules and contract levels differ by carrier and change over time. We do not print numbers we cannot keep current. Apply and ask for the current terms in writing.

Do IMOs charge agents fees?

Some do and some do not. The honest answer is that you must ask. Fees come in many forms: contracting fees, software fees, lead fees, training fees, or monthly charges. Some are fair. Some are not.

Judge a fee by what you get for it. A lead fee that buys a real call from a consenting buyer is a business cost. A “membership fee” with no clear service is a red flag. If an IMO charges to recruit you, or pays for your recruiting more than for your sales, step back.

You will pay some costs under any IMO. These include pre-licensing study, the state exam, fingerprinting, license fees, and often errors and omissions insurance. Those go to schools, states, and vendors, not to the IMO. Ask the IMO to separate its own charges from those pass-through costs.

Epic Life says agents buy inbound leads at a discounted rate. We do not call them free. For owners, Epic Life says there is no cost to become an agency owner, subject to state fees and normal business start-up costs.

What is a release and why does it matter?

A release lets you move your carrier contract from one IMO to another. Without it, you may be stuck. It is one of the most important terms in the agreement, and many agents never read it.

Ask four things:

1. Do you grant releases, and in writing?
2. How long does a release take?
3. Do I owe anything to leave, such as unpaid lead bills or advance balances?
4. What happens to renewals on policies I already sold?

Some IMOs hold releases back until a debt is paid, or add a delay. Others refuse. Epic Life states that releases are provided quickly if it is not a good fit. Ask us for the exact written wording, so you can compare it with anyone else you talk to.

How do lead costs affect what I earn?

Lead cost is often the biggest expense for a telesales agent. If you spend more on calls than you earn in commission, you lose money, no matter how good the commission looks. Always work out cost per sale before you commit.

Ask the IMO:

• Where do the leads come from, and are they exclusive?
• Are they inbound calls, live transfers, or aged leads?
• Do you receive any refund or replacement for bad leads?
• Is the lead source built for TCPA compliance?

Epic Life says its inbound calls are direct call-in leads and live transfers, exclusive, and generated through its lead vendors. It also says its lead platform is built for TCPA and HIPAA compliance. Read inbound calls vs live transfers vs aged leads for a worksheet you can use on any offer. For the Epic Life model, see inbound calls.

How do chargebacks and advances work with an IMO?

A chargeback happens when a carrier takes back commission it already advanced on a policy that ended early. The IMO passes the carrier’s rule to you, and may add its own. Ask for both in writing.

Ask about three points: how big the advance is, how long the earn-out period lasts, and whether the IMO charges extra on top of the carrier’s rule. Also ask how the IMO lets you recover cash flow after a chargeback. Our full explainer is life insurance chargebacks.

A good IMO also trains you to cut chargebacks, mostly by writing the right plan for the right client and confirming payment methods up front. Epic Life says it uses GIACT bank account verification, which helps check that a payment account is valid before the application goes in.

What are contract levels and vesting?

A contract level is the share of the carrier’s commission schedule that you receive. Vesting is your right to keep renewal commissions after you leave. Both change your income over time, so ask for exact terms.

Contract level. Carriers publish commission schedules. The highest is often called full contract. The level you get depends on the carrier, your IMO, and your production. Ask: “What level will I start at on each carrier I plan to sell? How can I move up? Who sets it?” See contract level and street level in the glossary.

Vesting. Vested renewals are commissions you still get after you stop working with the agency. Ask when vesting starts, and whether any condition cancels it. Epic Life states that agents own their book of business and that residuals are vested from day one. Ask us for the written definition of that term in your agreement. See vested renewals.

How should I compare two IMOs?

Put the same questions to each and write down the answers. A simple scorecard removes the pressure of a sales call and shows real differences.

Leave the cells empty until you hear the answer. If an IMO will not fill a cell, that is itself an answer.

Then check the fit. Do you want to work by phone on inbound calls, or do you prefer face-to-face sales? Do you plan to build a team? Can you afford the early months? See captive vs independent if you are weighing a different path.

What red flags should I watch for?

Walk away if you see any of these. None proves fraud alone. Several together should end the talk.

• Large upfront fees for “access” or “a spot”
• Pay promised for recruiting rather than for selling insurance
• Income claims with no source
• Pressure to sign today
• No written agreement before you pay
• Refusal to explain chargebacks, releases, or lead costs
• A licensing problem you can find on the state site

If you think a company misleads recruits, you can report it at ReportFraud.ftc.gov and to your state department of insurance.

What happens after I sign?

After you sign, you finish licensing if needed, complete contracting with carriers, and start training. Do not buy leads or dial until all three are done. Contracting can take days or weeks, depending on carriers.

Epic Life says it provides contracting support, a licensed service team, case design help, and a help desk. Training is mandatory and progressive. You learn the sales process and carrier systems using real leads. See training and licensing. For a week-by-week plan, read first 90 days as a telesales agent.

Next step

Ready to compare notes? Apply or ask for a call. Bring this checklist, ask each question, and ask for the answers in writing, including which terms depend on the carrier.