The contract you sign with an agency, IMO or FMO decides more about your first years than the license does. Most of what new agents regret later was in the contract, or was promised out loud and never written into it. Read it with these questions in hand.
The rule underneath all of these
If it is not in the signed contract, assume it does not exist. Neither "IMO" nor "FMO" is defined in insurance law (why that matters), so the document is the whole relationship.
Money you could owe
- Advances and chargebacks. Are commissions paid in advance? If a policy lapses, how long is the chargeback period and how is the amount calculated? How chargebacks work.
- Debt from people below you. If you recruit or have a downline, are you liable for their chargebacks?
- Debt when you leave. Does an unpaid balance become due immediately, and can it be taken from future renewals?
- Leads and fees. Must you buy leads, a CRM, training or a starter package from them? At what cost, and can you cancel?
What is yours
- Renewals and vesting. Do renewal commissions continue if you leave? After how long, and under what conditions?
- Your book of business. Who owns the client relationships and records? Can you service your own clients after you leave?
- Release. If you want to move, will they release your appointments, and how long can that take?
What you are agreeing not to do
- Non-solicitation and non-compete terms. What can you not do, where, and for how long after you leave? Where the federal non-compete rule stands.
- Exclusive carriers. Are you limited to certain insurers? That is the contract, not the license.
- Recruiting requirements. Is advancement tied to recruiting rather than to the business you write?
Red flags worth walking away from
- Income figures in the pitch, especially a top earner presented as typical.
- Pressure to sign before you have read the contract, or a refusal to give you a copy to take home.
- A starter fee or required purchase you were not told about until the end.
- Answers like "don't worry about that clause, nobody enforces it."
For a contract that will shape your career, an hour with a lawyer licensed in your state is cheap. This page is education, not legal advice.