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Agent Agreements

FEG Agent Agreement March 2022

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							Freedom Equity Group Independent Agent Agreement
Effective: 03/11/2022

This Independent Agent Agreement is entered into by and between Freedom Equity Group, LLC (“FEG”), and the individual who has electronically signed and submitted this Independent Agent Agreement (the “Agent”) to FEG.  FEG and Agent are collectively referred to as the “Parties” and may be individually referred to as a “Party.” In consideration of the mutual promises and covenants set forth below, FEG and Agent agree as follows:  

1. COMMENCEMENT OF AGREEMENT, RELATIONSHIP OF THE PARTIES

A. Agent agrees and understands that this Independent Agent Agreement shall not become effective until it has been accepted by FEG. The Independent Agent Agreement shall be deemed to be accepted by FEG when Agent has been issued an FEG Agent code.

B. Upon acceptance by FEG, this Independent Agent Agreement, together with the FEG Policies & Procedures, the Commission Schedules published in Agent’s back office, the FEG Agent Compliance Declarations, the FEG Social Media Policy, the FEG Products and Points Multipliers Schedule, the Ultimate Builder Multi-Pay System, all of which are incorporated by reference, shall constitute the entire agreement (the “Agreement”) between FEG and the Agent. This Agreement supersedes any and all prior contracts, agreements or understandings between Agent and FEG, including but not limited to “Single Case Agreements” for commissions on groups and /or individual policies or contracts, whether written or oral.  

C. FEG reserves the right to amend the terms of the Agreement, the Commission Schedules or the Advanced Commission Addendum, in its discretion. Amendments shall be effective thirty (30) days after notice of the amendment is posted or communicated to Agent but any amendment shall not apply retroactively. This Agreement may also be amended upon written consent of FEG and Agent.

D. Agent agrees to pay a one-time non-refundable enrollment fee of $125 to FEG to cover costs related to Agent’s back-office which contains sales aids and other business materials. This fee is the only required purchase to become an FEG Agent.

E. Agent expressly understands and agrees that Agent at all times shall be an independent contractor responsible for his or her own business activities and performance under this Agreement. Agent is solely responsible for setting Agent’s work hours and for paying expenses incurred by Agent in the operation of Agent’s business. Agent understands and agrees that AGENT IS NOT AN EMPLOYEE OF FEG AND AGENT WILL NOT BE TREATED AS AN EMPLOYEE FOR FEDERAL OR STATE INCOME TAX PURPOSES. Agent acknowledges that FEG is not responsible for income tax withholding and that it will not deduct or withhold any tax from Agent’s commissions or bonuses, if any.

2. AGENT BUSINESS PRACTICES

A. The Agent shall do business only in those states where FEG is authorized to do business. Agent must at all times be in compliance with all applicable regulatory licensing requirements applicable to the solicitation of applications for the approved products offered by FEG. A list of approved products offered by FEG is provided in the FEG Products and Points Multipliers Schedule located in Agent’s back office.

B.  All checks collected by Agent should be made payable to the Insurance Company the application is submitted to. Agent is responsible for delivering the policy, obtaining signed delivery receipt from client, obtaining any required signed amendments, and servicing all policies and contracts originated by Agent.

C. Agent must obtain PRIOR WRITTEN APPROVAL FROM FEG prior to utilizing or publishing marketing or advertising materials that reference FEG or any products or services marketed by FEG.

D. Agent shall have no authority to make, alter, modify, enter into or discharge any policy or contract offered by FEG; incur any debts or expenses on behalf of FEG; or withhold or convert to Agent’s own use or for the benefit of others any monies, securities, policies or receipts belonging to FEG.

E. Agent shall promptly submit to FEG or the applicable Insurance Companies all applications for policies.

F.  Agent shall have no authority to endorse or present for collection any check, draft or other instrument made payable to an Insurance Company.

G. Ethical Business Practices.  Agent shall at all times conduct FEG business in a manner that reflects favorably at all times on FEG, FEG products and services, and FEG Agents. Agent shall not engage in deceptive, misleading, or unethical conduct or practices that are or might be detrimental to FEG, other Agents or the public.  Agent shall comply with all laws, rules, regulations, and governmental requirements applicable to the operation of their independent FEG business and performance of their obligations under this Agreement, including the marketing, promotion, and sale of FEG products and services. In addition, Agent shall: (i) not publish or use any misleading or deceptive advertising material regarding FEG or its products or services; (ii) not make any statements, representations, guarantees, or warranties regarding FEG products or services that are inconsistent with those set forth in FEG publications; (iii) not make any online postings, or link to or from any postings or other material that is sexually explicit, obscene, pornographic, offensive, profane, hateful, threatening, harmful, defamatory, libelous, harassing, or discriminatory (whether based on race, ethnicity, creed, religion, gender, sexual orientation, physical disability, or otherwise), is graphically violent, is solicitous of any unlawful behavior, that engages in personal attacks on any individual, group, or entity, or is in violation of any intellectual property rights of FEG or any third party. 

H. Earnings Claims. Agent shall not make any earnings claims or representations in connection with promoting FEG as a business or income opportunity except as specifically set forth in materials published by FEG. Agent acknowledges that FEG does not pay any compensation, bonus, or commission for enrolling other Agents.
 
I.  Sales Tools. Agent may create her or his own sales aids, presentations, advertising and promotional materials (“Sales Tools”). All Sales Tools must contain only those product claims and income claims published by FEG, clearly identify they were created by an independent Agent and identify the Agent. Agent shall not sell or attempt to sell such Sales Tools. Agent may make Sales Tools available to other Agents free of charge.  FEG reserves the right to review any Sales Tools to ensure compliance with this Agreement.  In addition, FEG may create Sales Tools that are available for purchase by Agents.
 
J.  Use of Company Trademarks. The name “FEG” and other names and logos used by FEG are proprietary trade names, trademarks and service marks solely and exclusively owned by FEG (the “Company Marks”). FEG grants to Agent a limited, nonexclusive, non-transferable license to use the Company Marks during the term of this Agreement provided that such use complies with the provisions of this Agreement. Agent shall not use anything confusingly similar to the Company Marks in any email address, website domain name, or social media name or address. Agent shall also not use any Company Marks or any derivatives or variations of such marks or anything confusingly similar with any pay-per-click or other search engine optimization strategy.
 
K. Social Media & Digital Marketing. Should Agent utilize social media and digital marketing in promoting Agent’s FEG business, including but not limited to blogs/individual websites, web forums, Facebook, Instagram, Twitter, LinkedIn, YouTube, Pinterest, or other online platforms, Agent agrees to (i) conspicuously identify themselves as an independent Agent in all advertising, directory listings, promotional material, social media postings, and other forums in which they promote FEG’s products, services and/or business; (ii) follow the social media site’s terms of use. If the social media site does not allow its site to be used for commercial activity, Agent must abide by the site’s terms of use, and all other rules of the site; (iii) not use any social media site or other web presence on which they discuss or promote FEG or FEG products or services to solicit FEG Agents for another direct selling, network marketing or insurance company or business opportunity; and (iv) not imply exclusivity or ownership of a specific geographical area in a social media profile, post or website.
 
L. Confidential Information. Agent acknowledges that FEG may provide Agent with proprietary or non-public information and reports relating to Agent’s sales activity, other Agents, including downline reports, FEG products, FEG events and seminars, or FEG customers (“Confidential Information”). Confidential Information shall include, but not be limited to, reports and compilations generated by FEG that are made available to Agent, contact and earnings information of other Agents, sales information, forecasts, projections or other materials furnished or prepared by FEG for Agent’s use. Agent acknowledges that FEG is the sole owner of any and all Confidential Information provided to Agent pursuant to this Agreement. In this regard,  Agent shall: (i) not directly or indirectly divulge, disclose, disseminate, distribute, license, sell, use or otherwise make known any Confidential Information to any third party or person or entity not expressly authorized or permitted by FEG to receive such Confidential Information; (ii) use best efforts to prevent disclosure of any Confidential Information to any third party and exercise the highest degree of care and discretion in accordance with all express duties hereunder to prevent the same; and (iii) not directly or indirectly make any use whatsoever of the Confidential Information, except for purposes of performing services under this Agreement. The parties each acknowledge that the restrictions in this paragraph are reasonable efforts of FEG to protect and maintain the Confidential Information. The obligation of Agent regarding confidentiality shall survive for so long as FEG may, in its sole discretion, consider the Confidential Information to be confidential. Agent shall not directly or indirectly utilize Confidential Information in connection with any other business or commercial venture or the marketing or promotion of another company’s products or services. Similarly, Agent shall not directly or indirectly utilize Confidential Information to solicit other Agents or customers to join another direct sales company or purchase products or services from another company.
 
M. Non-Disparagement. During the term of this Agreement, Agent agrees to refrain from making negative, disparaging, untrue or misleading statements or comments about FEG, FEG products or services,  FEG’s officers, employees or other FEG Agents.
 
N. Non-Solicitation of Agents. During the term of this Agreement and one (1) year following the termination of this Agreement, Agent agrees to not directly or indirectly (i) solicit any FEG Agent to join, enroll or affiliate with another insurance or direct sales company; or (ii) terminate or alter the Agent’s business relationship with FEG. In this paragraph, “solicit” is defined to include the direct or indirect, actual or attempted, solicitation, encouragement, or effort to influence another Agent to participate in another direct selling business opportunity, even if the Agent’s actions are in response to an inquiry made by another Agent. In this paragraph “direct sales company” is defined to include a network marketing, multi-level marketing, party plan or social media company that sells products or services through independent sales representatives.
 
O. Non-Solicitation of Customers. During the term of this Agreement and one (1) year following the termination of this Agreement, Agent agrees to not directly or indirectly solicit, encourage or attempt to induce any FEG customer to terminate, reduce coverage under or replace any FEG products or services which have been sold by Agent or his/her downline Agents. 
 
P.  Right of Publicity.  Agent grants to FEG a revocable license to use the Agent’s name, photograph, likeness, personal story, testimonial, and/or FEG business history or information in advertising and promotional materials and waives all claims for remuneration for such use. The Agent waives any right to inspect or approve the same prior to publication by FEG. Agent may cancel this authorization by delivering written notice of revocation to FEG.
 
Q. Security of Customer Data and Confidential Information. Agent must adopt, implement, and maintain appropriate administrative, technical, and physical safeguards to protect against anticipated threats or hazards to the security of Confidential Information and customer data. Appropriate safeguards for electronic and paper records may include, but are not limited to: (i) encrypting data before electronically transmitting it; (ii) storing records in a secure location; (iii) password-protecting computer files or locking up physical files containing Confidential Information and (iv) shredding or irretrievably deleting Confidential Information and customer data. Agent must comply with all applicable privacy and data security laws, including security breach notification laws. In the event of an actual or suspected security breach affecting Confidential Information or customer data, the Agent shall promptly notify the affected customers and FEG in writing after becoming aware of such security breach and specify the extent to which Confidential Information or customer data was disclosed or compromised and shall promptly comply with all applicable security breach disclosure laws. Agent, at her or his expense, shall cooperate with FEG and affected customers and use their best efforts to mitigate any potential damage caused by a security breach, including by sending notice to the affected individuals, state agencies, and consumer reporting agencies, if such notification is required by law. 

3. AGENT COMPENSATION
Provided Agent is in compliance with all terms of this Agreement and all applicable laws and licensing requirements, Agent shall be compensated according to the Commission Schedules and Ultimate Builder Multi-Pay System in Agent’s back office. Some or all of Agent’s commissions may be paid directly by an Insurance Company and not FEG.  It is the Agent’s responsibility to regularly check the FEG Products and Points Multipliers Schedule as insurance companies periodically adjust commissions and total payouts.

A. Commissions to which Agent or Agent’s hierarchy may be entitled shall be payable to the Agent or a downline Agent (as applicable) only after the due date of the commissions payable from the Insurance Companies of issued business.

B. No commission will be paid on payments/premiums that are waived, refunded or not honored by a bank or financial institution.  Any commissions received by Agent that are based upon any waived or refunded payments/premiums shall be promptly returned to FEG by the Agent and such commissions shall constitute an Indebtedness owed by Agent to FEG until returned. See Section 5(G) below.

C. Other than the commissions and other compensation set forth in the Commission Schedules, the Guidelines and Points Multipliers and the Ultimate Builder Multi-Pay System, Agent shall be entitled to no additional compensation or reimbursement for expenses. Commissions payable on a single policy or contract may be divided between the Agent and other Agents contracted with FEG. In such cases, payments shall be allocated among Agents proportionately by FEG for commission payment purposes only.

D. Most Insurance Companies prepay or advance between seventy-five percent (75%) and one-hundred percent (100%) of first year commissions due on life insurance policies sold by the Agent (this percentage may vary based on company and product). If the prepay is less than 100%, FEG will pay to agents any remaining first year commissions, after commissions are paid by the insurance company to FEG. These will be in the 10th, 11th and 12th months after the policy is issued. No commissions are due if the policy is charged-back or canceled. FEG reserves the right to pay first year commissions on an “as-earned” basis, or 1/12th of the first year commissions per month in the first year. This option may be chosen due to poor agent persistency or other metrics as FEG defines from time to time in its sole discretion.

E. Only commissions earned on applications written after the date FEG has approved this FEG Agent Agreement are eligible for advance commission payments. Advance commissions are available on life insurance policies that have recurring premiums paid under a monthly pre-authorized check plan. For IUL and other life insurance plans, advance commissions are available on the planned premium up to the target or commissionable premium of the issued and paid policy less any non-commissionable policy fees. Specifically excluded from advance commission eligibility are annuities, life premium in excess of target premium, single premium life insurance, controlled business (all family members and business partners), and additional deposits received in conjunction with the sale of individual life insurance and annuity policies (“New Business”).  Premiums paid on a premium mode other than Pre-Authorized Checking (PAC) are not eligible for advance commissions.  Agents must have good credit standing in order to qualify for advance commissions. FEG, in its sole discretion, can approve or disapprove commission advance payments.

F.  All advances will be made upon full payment of the first month premium and the cash payment of said advance will become a loan to the Agent to the extent of the amount advanced, subject of the rules of the issuing Insurance Company and upon issuance  of the policy. This provision does not apply to advance on submit commissions (See Advance on Submit Commission Addendum for details).

G. Advance Commission Cap.  Advance commission is limited to $3,500 for any one policy individually for newly licensed Agents. FEG retains the right to remove Agent from this Advance Commission. Agent must be in good standing with FEG and have acceptable persistency, which is 75% in force business at the 13th month. See Policies and Procedures for additional details on Advance Commission Cap.  This provision does not apply to advance on submit commissions (See Advance on Submit Commission Addendum for details).

H. Except as otherwise provided in this Agreement, and subject to the terms of this Section 4, if and when an Agent qualifies for and achieves certain sales position designations established by FEG from time to time pursuant to The Commission Schedules and the Guidelines and Points Multipliers, Agent shall become Vested and entitled to receive commissions upon termination of this Agreement subject to the following: (a) if Agent is a natural person, this Agreement shall terminate immediately upon the death or termination of Agent and any commissions due and payable to Agent at the time of death, or any time thereafter shall be paid to the executor or administrator of Agent’s estate, or to Agent’s assignee, as applicable; (b) if Agent’s total compensation (from all lines) from FEG in any calendar year is less than $300.00, FEG shall have the right to terminate this Agreement upon written notice to Agent and no commissions shall be payable to Agent after the termination date; (c) Commissions shall be payable for so long as the Agent is designated as “Agent of Record” by a participating Insurance Company or by the policyholder when commissions are received by FEG, and the Agent is servicing the business in a manner satisfactory to FEG and in compliance with all terms of this Agreement; (d) no Commissions shall be payable to Agent if this Agreement is terminated “For Cause” pursuant to Section 6 below; and (e) Commissions set forth in the Commission Schedules or FEG Guidelines and Points Multipliers may be amended upon notice from FEG and such amendment(s) shall become effective at the time specified in the notice. No such amendment shall affect commissions payable with respect to any policy or contract issued from an application issued and paid prior to the effective date of such amendment.

I.  Indebtedness.  Any advance, loan, or extension of credit which the Agent or their downline Agent may secure or obtain from FEG shall constitute an Indebtedness owed to FEG. If any check or draft of the Agent used to transfer monies to FEG is dishonored upon presentment for payment, the amount of such check or draft shall be considered an Indebtedness of the Agent to FEG. The following provisions shall apply to any Indebtedness owed by an Agent to FEG:
(i) The entire Indebtedness to FEG of the Agent as recorded in the records of FEG may be deemed due and payable in full to FEG at any time upon written notice to Agent.
(ii) Agent agrees that FEG shall have first lien on any and all Agent commission accounts, and that FEG has a prior right of offset to the extent of any and all unearned prepaid commissions.
(iii) Agent shall be responsible for any costs, including reasonable attorney fees and other collection expenses, incurred by FEG in connection with the recovery from Agent of any Indebtedness to FEG.
(iv) Agent hereby grants to FEG a first security interest in all commissions owing to Agent pursuant to this Agreement to secure any Indebtedness to FEG, and FEG may at any time apply commissions payable to Agent or any other monies payable to Agent by FEG or by any Insurance Company contracted by or under common contract with FEG to reduce any such outstanding Indebtedness.
(v) It is understood and agreed that any prepayment of monies or commissions advanced shall create an Indebtedness to FEG. If payment in full is demanded, or if a repayment schedule is implemented, the undersigned agrees to pay interest on the unpaid balance of the loan at a rate of prime + 2% annually, calculated from the date the loan was originally made to the date the loan is finally repaid. For the applicable prime rate, FEG will refer to US Bank, N.A., or any other banking institution it may choose in its sole discretion.
(vi) Agent will be responsible for chargebacks in their downline hierarchy. Debit balances of downline Agents may rollup to Agent if downline debt remains unpaid. Such indebtedness will be allocated proportionately according to the most current upline hierarchy and the overrides that would be collected on new policy commissions.
(vii) Failure to repay any Indebtedness may result in Proportionate Debit Balance Roll-up to current upline hierarchy when debt is considered delinquent.  Debt is considered delinquent once outstanding without sufficient repayment for 90 days.
(viii)        Any Indebtedness by Agent or Agent’s downline to Insurers will be treated as a first lien on any commissions due under this Agreement or any previous Agreement with FEG or other Insurers. Such commissions will continue to be forfeited to FEG or Insurers until Agent’s or any Agent’s downline debt is repaid. Upon request by FEG, Agent shall pay to FEG or Insurers any Indebtedness owed even though there may be future commissions payable under this Agreement. If the Indebtedness has been satisfied, all commissions payable thereafter shall be paid in accordance with this Agreement.
(ix) Failure to repay any Indebtedness may result in termination of this Agreement for cause pursuant to Section 6 of this Agreement. Such termination may result in Agent losing vested commissions and Equity Share points. This ‘for cause’ termination may be reported to the Department of Insurance in Agents’ resident state. Agents carrying long-term debit balances may also be reported to Vector One.  
(x) Agent agrees that FEG, at any time, may set-off against commissions due or to become due to Agent, or to anyone claiming through or under Agent, any amount due from Agent or Agent’s  downline to FEG, including any chargebacks.  If not set-off , all such amounts shall be paid to FEG within 30 days.  Agent also agrees that Agent remains legally obligated to immediately reimburse any upline Agent  for the full amount of any chargebacks due and owing to FEG under this agreement for which said upline t has paid on Agent’s behalf.        In the event that FEG, or any upline Agent  elect to refer such indebtedness to outside collections and/or to initiate legal action to collect any indebtedness from Agent or Agents’s downline, Agent shall reimburse FEG fully as applicable, for the costs of collection, attorney’s fees, and expenses incurred by FEG. .  This provision shall remain in full force and effect regardless of any termination of FEG Independent Agent Agreement.

4. GENERAL PROVISIONS

A.  Agent Conduct.
Agent shall be free to exercise Agent’s personal judgment as to the time and manner of performing services authorized under this Contract, but shall be guided by such rules as may be adopted by FEG concerning general business conduct as well as the provisions of this Agreement. In all cases, the business of the Agent shall be conducted in accordance with the laws and regulations of the jurisdictions in which the Agent is authorized to represent FEG and conduct business.

B.  Background Investigation.  Agent authorizes FEG to conduct an investigation concerning character, credit, reputation and personal traits and releases FEG and any entity with whom FEG contracts with  from any liability with respect to the content of the information provided in such investigation  and any resulting action by FEG including the sharing of such information or the termination of this Agreement.

C. Errors and Omissions Coverage. Agent is required to maintain Errors & Omissions (“E&O”) liability insurance coverage during the term of this Agreement and shall provide FEG with proof of coverage upon request. The minimum amount of Errors & Omissions coverage required shall be $1,000,000 (One Million Dollars). This requirement  may be changed by FEG upon  notice to the Agent.  Agent shall inform FEG of any material changes in Agent’s E&O coverage within 60 days of the change. Material changes include, but are not limited to, E&O coverage that falls below the minimum amount required, any lapse, cancellation, or termination of E&O coverage, and any restriction(s) placed on Agent’s E&O policy by an E&O carrier. FEG may terminate this  Agreement at any time if Agent’s  E&O coverage does not meet the minimum amount required by FEG.

D.  Records and Supplies. All records maintained by Agent relating to services provided by Agent pursuant to this Agreement and all books, rate manuals, forms, supplies and other information furnished by FEG to Agent are the sole property of FEG. Agent agrees not to use or disclose any such information to any person except as expressly permitted by this Agreement and to take reasonable precautions to prevent any unauthorized disclosure or dissemination of such information. Upon request by FEG or termination of this Agreement, Agent agrees to promptly return all such information, including all copies, to FEG.

E. Non-FEG Products or Services. Agents are prohibited from marketing or selling  non-FEG products, training or services to other FEG Agents without first obtaining written approval from FEG. Agents are also prohibited from charging  prospective Agents any fees in connection with prospective Agent’s application to become an Agent for FEG. The only fee required to become an FEG Agent is the one-time non-refundable fee of $125 payable by Agent to FEG.

G. Recruiting Protocol.  If two or more FEG Agents are attempting to recruit the same potential FEG recruit, the new recruit shall be placed under the Agent who enrolls the new Agent. (The new Agent must input their own personal information into the FEG system and sign the Agreement electronically and/or by actual signature. Inputting personal information for any other person is grounds for immediate termination). Cross recruiting at/from an FEG event or FEG Agent office or under any circumstances is prohibited. “Cross-recruiting” means the solicitation or recruitment of an FEG Agent in another Agent’s downline to transfer to another FEG Agent downline. This action is grounds for immediate termination of the FEG Independent Agent Agreement. All FEG Agents  are prohibited from soliciting, recruiting or inducing any other FEG Agent to join or enroll in  any other business opportunity.  Such conduct  shall be grounds for immediate termination of the Independent Agent Agreement.

H. Co-Leadership. Should any Agent be Inactive, FEG may choose to place the Inactive Agent into FEG’s co-leadership program. This program will pair the Inactive Agent with an FEG-approved manager.  This program is intended to assist Inactive Agents to become active Agents within FEG.

I.  Assignment. No Assignment or other transfer of any rights, title or interests under this Agreement, or of any benefits accruing under this Agreement, in whole or in part, shall be valid, and any such attempted assignment or transfer shall be void without the written approval of FEG. Any assignee of rights or benefits of this Agreement shall be subject to all the terms and provisions of the Agreement.

J.  Hold Harmless. Agent agrees to indemnify and hold FEG, its directors, officers, managers and employees  harmless from and against all claims, damages, losses, expenses, costs or liabilities (including attorney’s fees) arising from or relating to (i) Agent’s operation of Agent’s independent FEG business; (ii) any negligent, reckless or intentionally wrongful act of Agent or any person acting on Agent’s behalf; (iii) any breach by Agent of any term of this Agreement; and (iv) any claim that Agent has violated or infringed upon any rights of third-parties, including but not limited to privacy rights or intellectual property rights.  

K.  Limitation of Liability. The Parties agree that neither FEG nor Agent  shall be shall be liable for, and the Parties agree to release, defend, and hold harmless the other Party from, all claims for special, indirect, incidental, punitive, consequential or exemplary damages of any kind or nature for any claim or cause of action relating to or arising from the Agreement.

L. Compensation After Termination – If this Agreement is terminated by Agent’s death or total and permanent disability, Agent or Agent’s beneficiary shall receive commissions pursuant to this Agreement on business written prior to termination. Unless otherwise designated in writing, Agent’s beneficiary shall be Agent’s spouse, if then living, otherwise, Agent’s estate. If this Agreement is terminated “for cause,” Agent shall forfeit all commissions and other compensation due or to accrue under this or any previous Agreement between Agent and FEG or any of its affiliates or subsidiaries. In the event Agent’s total compensation after termination of this Agreement totals less than $300.00 during any calendar year after termination no further compensation shall be paid to Agent or Agent’s beneficiary. All compensation payable after termination of this Agreement shall be subject to FEG’s right of recoupment lien to recover an Indebtedness as discussed above.

M. Beneficiary – Agent may designate a beneficiary to receive commissions payable after Agent’s death. A named beneficiary may only be a spouse, family member or a bona-fide business partner approved by FEG. The name of the beneficiary, along with their relationship and contact details must be recorded in the FEG back office. FEG reserves the right to require evidence that there are no conflicting claims before making payment to the named beneficiary.

N. Notices  - Notices to Agent from FEG may be sent by mail, email or through the FEG website.

5. TERMINATION

A. This Agreement may be terminated without cause by either Party upon not less than thirty (30) day’s written notice to the other Party and such termination shall be effective as of the date specified in such notice (which shall not be less than thirty days from the date on which the notice was sent). 
This Contract may be terminated by FEG at any time for “cause.” “Cause” shall include but not be limited to (i) Agent’s commission of a fraudulent, illegal or dishonest act adversely affecting FEG, including but not limited to cross-recruiting; (ii) violation of any law, regulation, or rule of any jurisdiction in which the Agent operates; (iii) cross-recruiting of an FEG Agent to another Agent’s downline or to any other business opportunity; (iv) any act or omission by Agent that is harmful to the reputation and/or goodwill of FEG, including but not limited to disparagement of FEG, its officers, employees or other FEG Agents; (v) an Agent’s personal policy persistency drops below 70% in the 13th month; (vi) an agent’s contract is canceled by a carrier for fraud; or (vii) repeated violations of the Agent Agreement, FEG's compliance declarations, social media policies, compliance declarations and other similar guidelines posted by FEG.  
A termination for cause shall be effective upon Agent’s receipt of written notice of termination or on the date specified in the notice if later. Upon a termination for “cause,” FEG may, at its option, forfeit all of Agent’s commissions which may be due under this Agreement as of the termination date and all commissions which may become due following the termination date. Agents terminated for cause forfeit all accumulated ESP and are ineligible to receive further ESP. Agents terminated for cause are ineligible to rejoin FEG. To the extent this provision conflicts with any other provision of this Agreement this provision shall control. 

6. FEG EQUITY SHARE POINTS PLAN

Eligible Agents have the opportunity to participate in the FEG Equity Share Points (“ESP”) Plan.
FEG ESP is NOT a Stock or Stock Option Plan or offer.  Also, this is not an offer to sell or the solicitation of an offer to sell a security.
FEG does not guarantee the sale of the company, and FEG is under no obligation to pursue or finalize a sale of the company.  FEG does not  speculate as to the value of the sale price.
FEG reserves the right to change the Eligibility Requirements at any time 
 
7. AGENT REPRESENTATIONS. 
By entering into this Agreement, Agent represents and acknowledges the following: (i) Agent will not violate the terms of or interfere with any contract, agreement or business relationship that Agent has or has had with any third party; (ii)  Agent  will not engage in any business practice or behavior, nor will Agent take any action, which will result in any violation of any restrictions or covenants to which Agent is subject to pursuant to any agreement to which Agent is or was previously a party; and (iii) FEG, its agents, managers, officers, directors, shareholders, and employees have not induced Agent in any way whatsoever to terminate any contract, agreement or business relationship that Agent presently has or has previously had with any third party. Agent understands that the above representations and acknowledgments constitute a material part of this Agreement and are material representations upon which FEG is relying in agreeing to enter into and accept this Agreement.

8.  GOVERNING LAW, VENUE AND ARBITRATION. This Agreement, including any procedural or substantive rights in any arbitration,  shall be governed by and construed  in accordance with the laws of the State of Texas, without giving effect to principles of  conflicts of laws.  The Federal Arbitration Act shall otherwise govern all matters relating to arbitration. 

9.  THE PARTIES MUTUALLY AGREE THAT ANY CLAIM OR DISPUTE ARISING FROM OR RELATING TO THIS AGREEMENT, INCLUDING ANY CLAIMS RELATED TO AGENT’S COMMISSIONS, THE ESP PLAN, THE RIGHTS AND OBLIGATIONS OF THE PARTIES WITH RESPECT TO THIS AGREEMENT, OR ANY OTHER CLAIMS RELATING TO THE PERFORMANCE OF EITHER PARTY UNDER THIS AGREEMENT SHALL BE RESOLVED BY BINDING INDIVIDUAL ARBITRATION BEFORE A SINGLE ARBITRATOR  PURSUANT TO THE COMMERCIAL RULES OF THE AMERICAN ARBITRATION ASSOCIATION (The “aaa”). THE COMMERCIAL RULES OF THE AAA ARE AVAILABLE AT www.adr.org.  BY AGREEING TO ARBITRATE, THE PARTIES EXPRESSLY WAIVE THEIR RESPECTIVE RIGHTS TO A TRIAL BY JURY.

A. In the event the AAA is unwilling or unable to hear the dispute, the Parties shall agree to, or an appropriate court shall select, another arbitration provider. Unless otherwise agreed upon by the Parties, any arbitration hearing shall take place in Dallas, Texas metropolitan area, although either party may elect to participate in the arbitration by telephone. The Party filing the Demand for Arbitration shall be responsible for the initial filing fees and costs charged by AAA and the respondent shall be responsible for payment of filing fees for any Cross-Complaint or Counterclaim. The Parties shall share equally the costs of case management fees, arbitrator fees or other fees charged by AAA other than the filing fees referenced above. The Parties shall bear their own costs for attorney’s fees, court reporter fees, transcript fees and other litigation costs. 

B. Although this agreement to arbitrate is made and entered into between Agent and FEG, the owners, members, managers, and employees of Freedom Equity Group, LLC (the “Related Parties”) are intended third party beneficiaries of the Agreement, including this agreement to arbitrate. This provision shall not restrict either party from seeking preliminary or permanent injunctive relief in a court of competent jurisdiction, provided, however, that the sole and exclusive venue for any court proceedings shall be in Collin County, Texas. The parties to this Agreement consent to the exclusive jurisdiction of state and federal courts of Collin County, Texas for purposes of enforcing any arbitration award or other legal proceedings between them.  This agreement to arbitrate shall survive any termination or expiration of this Agreement.

C. This agreement to arbitrate shall survive the termination of this Agreement. Any issues related to the arbitrability of any claim, or the scope, validity or enforceability of this agreement to arbitrate shall be determined by the arbitrator. If either party wishes to initiate arbitration, the initiating party must notify the other party in writing via certified mail, return receipt requested, or hand delivery via courier. The Demand for Arbitration must include a statement of the legal and factual basis of the claim(s) to be arbitrated. The parties shall be entitled to all discovery rights permitted by the Federal Rules of Civil Procedure and the parties shall be permitted to bring motions under FRCP Rules 12 and 56.  The decision of the arbitrator shall be final and binding on the parties and may, if necessary, be reduced to a final judgment in a court of competent jurisdiction.

10. CLASS ACTION WAIVER. By entering into the foregoing agreement to arbitrate,  Agent waives any right to have any dispute or claim brought, heard or arbitrated as a class action, collective action or representative action and Agent agrees that the arbitrator shall not have the authority to hear or arbitrate any class, collective or representative action. Agent further agrees that any claim or argument that all or part of this Class Action Waiver is unenforceable, unconscionable, void or voidable may be determined only by a court of competent jurisdiction and not by an arbitrator.   

11. LIMITATION OF ACTIONS. The Parties agree that any claims arising under this Agreement must be brought within two (2) years or by the date specified by the applicable statute of limitations, if earlier, from the date of the alleged act or omission giving rise to the cause of action. Failure to bring such action within such time shall bar all claims arising from such act or omission. The Parties waive all applicable statute of limitations that conflict with this provision. 

12. SIGNATURES.
I hereby acknowledge that I have read, understand and agree to the above provisions of this Agreement. I further acknowledge that I have electronically signed and submitted  this Agreement and that this Agreement will not be effective until I have been assigned a unique FEG Agent code.  I further acknowledge that this Agreement is dated and accepted by both parties upon creation of my unique FEG Agent code.
ELECTRONICALLY SIGNED BY THE AGENT

FEG Agent Policies and Procedures January 2024

I have read, understand and agree to the terms of the FEG Agent Policies and Procedures January 2024.
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download the feg agent policies and procedures january 2024

							Freedom Equity Group Policies and Procedures
Effective: January 1, 2024
These policies and procedures are the rules under which Freedom Equity Group operates. The Policies and Procedures are incorporated by reference into the FEG Agent Agreement. All agents must adhere to all of the provisions of both documents. In order to create an even playing field for all current and future FEG agents, no exceptions shall be made. Some of the terms used are defined at the end of this document. 


These policies and procedures may be updated by the board of Freedom Equity Group at any time. Agents will be alerted to changes by a notice sent via email, sms, and an alert on the FEG back office. Agents will have 30-days to acknowledge any changes by logging into the FEG back office and approving them. Agents that do not acknowledge updated policies and procedures may have their commissions held until they do so. 
Levels and Promotions
All agents will start FEG at an initial level and earn promotions based on our guidelines.


New non-licensed agents:
All non-licensed new agents will start at the Training Rep level. Once the new, non-licensed agent is licensed, with the approval of FEG, the recruiting agent can promote the agent one-time, up to Regional Manager. 


New previously licensed agents:
All previously-licensed new agents will start at the level set by their direct recruiter, up to Regional Manager, with the approval of FEG. 


Previously licensed agents may start at a level higher than Regional Manager if approved by FEG, and also by all upline agents whose pay would be affected, that have Activity in the prior 12 months, up to the first upline CEO or Chairman. The following guidelines should be used to determine the starting level based on documented income in either of the two prior calendar years: RVP and SVP $50,000, NVP $70,000, SNVP $100,000, ENVP $150,000, SENVP $250,000. This is called a status-match promotion. 


If approved by the FEG Board, an agent may start at a level higher than SENVP or without documented income if also approved by all upline agents whose pay would be affected, that have Activity in the prior 12 months, up to the first upline CEO or Chairman. This would apply to new direct to FEG legs and for strategic agent recruiting. 


Promotions:
Promotions to Regional Vice President (RVP) and above will be system automated and based on the Multi-Pay grid guidelines. Promotions up to Regional Manager (RM) may be made by the agent’s first active upline RVP. FEG recommends following the Multi-Pay grid promotion guidelines for promotions up to RM. 


Only agents with Activity within the prior 12-months are eligible for promotion. For promotion qualification, the definition of Activity shall also include attendance at the most recent FEG convention, but does not include agent transfers. For promotions, the definition of leg shall include downline agents. Only one downline agent per direct leg will be counted towards promotion qualification. 


For the purposes of earning a promotion under the FEG pay grid, agents above RVP who join FEG after November 1, 2022, and receive their initial level based on a status match, will not count as a qualifying leg for an upline’s promotions until they meet the pay grid guidelines required of the commission level needed for the promotion. Agents above RVP that were one-year inactive or became one-year inactive after November 1, 2022 will not count as a qualifying leg for an upline’s promotions until they meet the pay grid guidelines required of the commission level needed for the promotion after they most recently became active. Agents above RVP that transferred after November 1, 2022 will not count as a qualifying leg for an upline’s promotions until they meet the pay grid guidelines required of the commission level needed for the promotion after the transfer, unless they were already in the upline agent’s downline prior to the transfer.


In rare circumstances CEOs may recommend an agent for special promotion up to Senior Executive National Vice President. All agents whose pay is affected must sign off on the promotion. All special promotions must be approved by FEG. No special promotions will be accepted within 6 months of an agent transfer.


Stacking is placing an agent and their spouse or domestic partner or corporate partner’s code in the same upline hierarchy for the purpose of collecting additional overrides. This is not allowed and the lower agent codes will be demoted to Regional Manager. The only exception is the purchase of another unrelated agent’s business, approved by FEG. Purchased codes can be stacked.


Level Maintenance:
Agents are required to achieve a minimum income to maintain their contract levels. The income used for this determination is the highest rolling-52-week income in the prior 2 years. The minimum income threshold will not apply in the same calendar year as an agent’s most recent promotion. Agents who do not meet the minimum requirement in a calendar year may be lowered by FEG down one level. The drop in level will not affect any commissions on old business. 

Below Regional Vice President: No minimum income required. Regional Vice President: $25,000. Senior Vice President and National Vice President: $35,000. Senior National Vice President, Executive National Vice President and Senior Executive National Vice President: $50,000. Field Co-Founder and Field Founder: $75,000. Field CEO: $100,000


Level maintenance will be calculated and applied once a year at FEG’s discretion, at the end of each calendar year. 


Agent Names:
Unless approved by FEG, all agents will appear on company Leaderboards. Each FEG code must have a real person’s name associated with it. Corporation names and couple names are not permitted. The name must match the name on insurance licenses and the agent’s NPN number. If the licenses are for a corporation, the name of one of the owners of the corporation must be used instead. An agent name can only be associated with one FEG code on the leaderboards. 

Agents can add a spouse or partner's name. FEG will auto-generate a Recognition Name from the agent and spouse/partner-name. This recognition name will be used for awards and other recognition. The recognition name may be modified upon request. FEG will have final say on all recognition names.
Agent Communications
All agents must provide and maintain a current email address which will be the primary mode of communication with agents for FEG company notices. Agents agree that they will read all emails and agree that notices are valid if sent to the email on file. These company notices cannot be opted-out. 
Commissions
Commissions are paid weekly. Commission payments to agents are only made after FEG receives commissions on a policy from the carrier. 

FEG will not pay commissions on policies if there is a bank draft failure after carriers have calculated and paid FEG commissions. Commissions will be held until the carrier either charges back the commissions or demonstrates a successful subsequent draft.


Commission paid on new policies are based on the level and upline of all unsuspended agents in the organization at the time policies are submitted. If FEG does not have the submit date for a policy, the levels and uplines of agents to be paid on a policy as of the time commissions are run will be used.


FEG will claw back 100% of any negative balance due to chargebacks from agent’s commissions until the negative balance due to chargebacks is fully paid. No payment plans will be implemented for policy chargebacks out of future commissions. If a negative commission balance persists, an agent will be subject to debt recovery and suspension. 


No loans, or advances on pending commissions will be made by FEG for any reason. 


FEG pays commissions based on the FEG Multi-Pay grid, the writing agent’s upline and levels, and any split commissions on the policy. Once a policy is issued, all subsequent commissions on the policy are paid out at the same share as when the policy was new. Even if the writing agent or upline agents’ level or hierarchy changes.


FEG pays commissions to the grid based on target premium and a points multiplier set by FEG. The points multiplier for all products is available on the FEG ETS in the Product Schedule. Not all life insurance products will pay 1X target premium to the grid. It is the agents responsibility to understand the points multipliers before soliciting for FEG approved products.


Renewal income on IUL and GUL life insurance policies will be shared equally between FEG and the grid. Renewal income paid to the grid is capped at 2% of premium paid for IUL and 2.5% of premium paid for GUL.


Commissions will not be paid on new policies to agents with an expired resident insurance license. It is the agent’s responsibility to monitor their licenses on the FEG back office, and to update FEG agent support with their current license information, including any license renewals.


Commissions, including override commissions, will not be paid to any FEG agent that does not have a valid non-resident state license if the jurisdiction of the policy is in one of the  states listed below. Agents that have not presented to FEG a valid license in the states listed below that require one when commissions are run will be skipped over and not paid commissions on new policies in that state. 


ALABAMA, FLORIDA, GEORGIA, KENTUCKY, LOUISIANA, MARYLAND, MASSACHUSETTS, MISSISSIPPI, MONTANA, NEW MEXICO, NEW YORK, PENNSYLVANIA, SOUTH CAROLINA, UTAH, VIRGINIA, WEST VIRGINIA, WISCONSIN  


If the FEG agent is a corporation, and a policy jurisdiction is in one of the following states, the above rule does not apply. 


FLORIDA, WISCONSIN


Any previously held commissions that are unclaimed will be distributed to agent uplines once affected policies reach 13-months after issue. 


The amount of commissions advanced to an agent is subject to a cap. The cap will apply to individual policies and in aggregate across multiple policies that have the same payor. An individual agent’s cap is determined by their highest ring level as follows: 

No ring: $3,500, 100K ring and above: $5,000, 200K ring and above: $7,500, 500K ring and above: $10,000

If advanced commissions are not paid to agents due to caps, the commissions are deferred until the commissions are earned - generally 1/12th of the total each month. If the policy stays in-force, the deferred commissions are released to the agents when earned. If an agent is set to as-earned for all policies with FEG, they will also be placed as-earned with each carrier they are contracted with. 


Agents with a personal policy persistency below 70% for 3 consecutive months, will have their per-policy advance cap reduced to $1,000 and lose Advance on Submit privileges. If an agent’s personal policy persistency is not above 70% in each of the next 3 months, the agent will be placed on as-earned status and will not receive any policy advances.  Once their persistency is above 70% all privileges will be restored for new policies.


Individual agent commissions on annuities above $15,000 will be deferred one-month or until the expiration of the free-look period. The first $15,000 will be paid out. The $15,000 cap will apply in aggregate if there are multiple policies inside the free-look period with the same client or payor. 


Agent commissions on Life policies written on themselves will be paid as-earned. Agent commissions on Annuity policies written on themselves will be paid up to the agents current advance-cap initially. Remaining commissions will be deferred one-month or until the end of the free-look period.


Agents may request their income credit be assigned to a spouse, domestic partner or business partner. Except as allowed below for training reimbursement, no other shared commission arrangements are allowed. Income used for calculating ESP, contests and rings from spouses and partners will only count if income credit is assigned. 


Agents who assign commissions or combine incomes will have any remaining balance after commissions are processed transferred to the agent receiving the income or income credit. This includes positive or negative balances. If either agent combining commissions or income credit has their advance cap reduced or is placed on as-earned status, the other agent will have the same restrictions applied. Once agent commissions or income credits are combined, this cannot be reversed without providing evidence of dissolution of the partnership. 


Agents may enter into training agreements such that training costs are reimbursed. If any reimbursement requires policies to be submitted or issued, no payments may be made unless the agent receiving the funds holds a valid insurance license.  


If FEG is served with a valid wage garnishment order from a court or state or federal agency, FEG will withhold commissions from agents to satisfy the request. A processing fee will be added. Agents will be notified of all wage garnishment orders.  


Questions about commission payments must be directed to FEG support for research and a response. Do not send commission questions to the FEG owners or to the carriers. Use (877) 329-6608 or agentsupport@fegcorp.com.
Advance on Submit
FEG participates in an advance-on-submit program with one or more of its carriers. Agents must qualify to receive advance-on-submit commissions on a policy. If a writing agent does not qualify, all submit advance commissions paid on the policy, including upline spread and override commissions, will be deferred until the policy issues and the full advance is paid to FEG. 
The following rules apply to qualify a writing agent for advance on submit:
- Policy target premium must be less than $20,000
- Agents must have an established Personal Target Placement Ratio of 70% or higher.
- Agents without an established Placement Ratio will qualify on their first 3 split adjusted F&G IUL submitted policies
Bonus Pools
FEG currently has five bonus pools: Base Shop, Base First, Base Sixth, Builders and Super Builders pools. Pools accumulate on Life products only, not on annuities. Renewals and Excess commission do not contribute to the pools. Bonus pool payments will be made monthly, usually in the third commission run of the month. 


Payouts on grid towards the pools are as follows:


Base Shop Bonus Pool: 0.5%
Base First Bonus Pool: 0.5%
Base Sixth Bonus Pool: 0.5%
Builders Bonus Pool: 0.5%
Super Builders Bonus Pool: 2%

To qualify for a bonus pool, a minimum AV production is required in a given month:

Base Shop Bonus Pool: $20,000 Base Shop AV
Base First Bonus Pool: $75,000 Base First AV
Base Sixth Bonus Pool: $300,000 Base Sixth AV
Builders Bonus Pool: $500,000 Infinity AV
Super Builders Bonus Pool: $1,000,000 Infinity AV

If there are multiple winners of a pool, the pools are shared pro-rata based on AV production. 


To qualify for the Base Shop Bonus Pool, agents must maintain 70% or greater base shop policy persistency, have three base shop legs producing new policy production in the month, along with three CV base shop recruits in the given month and the month prior. To qualify for the Base First, Base Sixth, Builders or Super Builders pools, agents must maintain 70% or greater infinity policy persistency. 
Production Credit
FEG’s business relies on our agents selling Life Insurance and Annuities to clients. Production credit is how FEG recognizes agents for both personal and downline sales. Production credit is used for leaderboard recognition, contests and Equity Share Points. On-going production credit is updated after each commission run. 


Production credit is based on a point system. One production point is earned for each dollar of commissions paid to the grid on all policies. No points are earned for any off-grid business. Negative commissions due to chargebacks are counted as negative points. Points will be earned for advances, earned payments, excess premium and renewals paid. 


FEG production points are based on Adjusted Value (AV). AV calculations cap the points from any leg at ⅓ of the total Cumulative Value (CV) points. AV is calculated on a monthly basis. 


FEG publishes leaderboards for each agent’s downline and for the entire company. These leaderboards rank production, pending and recruit points for the following categories:


Personal: Agent is the agent of record on a policy. Cumulative Value credit only, as lines do not come into play.


Base Shop: Agent of record is either the agent or in the agent’s base shop. This includes all downline agents with a level below Regional Vice President without an intervening Regional Vice President or above.


Base -> First: Includes the agent, the agent’s base shop, and any first generation base shops. Base shop plus all business for which agent would receive the first generation override commissions on new business.  


Base -> Sixth: Includes the agent, the agent’s base shop and up to six generation base shops. Base shop plus all business for which agent would receive any generation override commissions on new business.  


Infinity: All personal and downline business.
Recruit Credit
Similar to production credit, FEG gives agents credit for personal and downline recruiting. Recruit credit will be calculated monthly, similar to production credit. 
Debt Recovery
Agents are responsible for unpaid negative commission balances and debt account balances of their downline agents. Agents with combined commissions or combined income credit will be responsible for payback of any debt incurred by either agent. 


Agents with a negative commission balance will receive notice of their unpaid negative balance and be given the opportunity to repay the amount due. If the negative balance persists and no payment schedule acceptable to FEG is made, after 90 days, FEG will recover the debt from the agent’s upline. The agent balance will be washed out and the agent will be reported to Vector if applicable. 


All agents in the upline of the agent with debt will share proportionately in the debt rollup based on how much commission they make from the agent’s business. The share borne by each upline agent will be determined based on the hierarchy and levels of the upline agents on the day the debt is recovered. 


The agent for whom the debt was recovered will have the opportunity to make payments or to write new business in order to pay off their debt to their upline. Agents who continue to make no attempt to pay back their negative balances will be subject to collections and will be terminated for cause.


Upline agents assigned a negative adjustment due to a debt recovery will not have the amount of the debt recovery negatively affect their income credit for the purposes of any trips, recognition or ESP if applicable. A credit will be given for the amount of the debt recovery and this will appear on the agent income data on the ETS. 


Any agent terminated for cause, with a negative balance, will have that balance shared with their upline immediately using the process described above. 
Agent Debt
FEG will track an agent debt account balance separately from an agent’s commission account balance. Agents may be assigned a debt account balance due to debt recovery and other extraordinary circumstances at FEG’s discretion. A debt account is not used for chargebacks.


Debt account balances will be paid back from commissions or direct payments by the agent. 


At FEG’s sole discretion, an agent may be given a payment plan to repay their debt account balance over time. 
Agent Transfers
All agent transfers must be initiated by the agent wishing to transfer on the FEG back office. Once a request has been made, FEG will obtain all the necessary approvals via email. 


Except where disallowed below, agents WITHOUT Activity (defined below) in the prior 6 months may request to change uplines without a release from their current upline. Only the agent is transferred. 


Agents WITH Activity (defined below) in the prior six months, must obtain a release from their current direct upline agent and anyone else whose override or spread commissions would be negatively affected in their upline, up to the first upline Field CEO or Field Chairman, before they may transfer. A release is not required from agents who are one-year inactive (defined below). Only the agent is transferred. 


Agents WITH or WITHOUT Activity in the last 6 months may request a transfer that includes their entire downline team. A Team transfer requires a release from their current direct upline agent and anyone else whose override or spread commissions would be negatively affected in their upline, before they may transfer. A release is not required from agents who are one-year inactive.  


Agents requesting a transfer must obtain approval from their new immediate direct upline. This consent will include acceptance of responsibility for any current or future debt from the new agent. If the agent has a significant negative balance, all agents in their new upline that would share in any debt roll must approve the transfer. If the agent is requesting a Team transfer, and there is a significant amount of negative balance in their downline, all agents in their new upline that would share in any debt roll must approve the transfer. Approval is not required from upline agents who are one-year inactive. 


Except for cases where an agent’s upline transfers or is terminated, agents will not be assigned to a new direct upline without their approval. Once a new upline is set, the change is permanent, and changes cannot be made without going through the agent transfer process. 


After an agent transfer is complete, the transferring agent may not recruit other agents to their downline from the original transferring agent’s prior hierarchy without the signoff of the other agent’s upline. This includes other agents transferring with no activity in the prior 6 months. The prior hierarchy is defined as any agent downline of the original transferring agent’s previous direct upline with the exception of direct recruits. 


Agents that transfer are ineligible for special promotion until 6 months after any transfer is complete. Agents that transfer will not count towards their new upline agent’s required levels for promotion until after 6 months. 


No agent may complete an inactive transfer if their spouse, domestic partner, bonafide business partner or any agent receiving pay from the agent, is currently active with FEG. If an agent’s spouse, domestic partner, or bonafide business partner is currently active with FEG, they may not sign up as a new agent with FEG except as direct to agent described here or their immediate upline. 


After an agent transfer, any new policies written that replace policies written before the transfer will be paid as-if they were written with the prior upline. This applies whether the policy is replaced by the original writing agent or anyone in the new organization. Agents must notify FEG of all policies replaced after they transfer.


Agents who are terminated by FEG and subsequently reinstated must follow all rules related to activity or signoff before a transfer. 


FEG reserves the right to correct as necessary any agent transfers or new agent signups that are discovered to have not followed these rules.


All agent transfers must be approved by FEG. There will be no exceptions to this policy. No release and no acceptance means no transfer. Work it out, sit it out or get a release.
Co-Leaders
Co-leaderships are exclusively to provide training and support for an agent’s business. An agent may request a co-leader be assigned to them.


All co-leadership requests must be initiated by the agent wishing to to have a co-leader on the FEG back office. Once a request has been made, FEG will obtain all the necessary approvals via email. 


Agents must have approval from their current direct upline agent and anyone else whose override or spread commissions would be negatively affected in their upline, up to the first upline Field CEO or Field Chairman, before they may complete the co-leadership. Approval is not required from upline agents who are one-year inactive. 

If the agent or agents in their downline have a significant negative balance, all agents in the co-leadership upline that would share in any debt roll must approve the co-leadership. Approval is not required from agents who are one-year inactive. 


If the agent has an existing co-leader, then a release is required from their current co-leader and  anyone else whose override or spread commissions would be negatively affected in their upline, up to the first upline Field CEO or Field Chairman, before they may complete the co-leadership change. Once completed the existing co-leadership will be dissolved. 

Co-leaders will not be assigned without approval of the agent.  A co-leader will not be assigned solely for the benefit of the co-leader.


Only one co-leader can be assigned per agent at a time. 


There is a maximum of 50% commission and recruit credit split to the co-leader. The original upline will maintain a minimum of 50% of the commission and recruit credit split.


Agent Suspension and Termination
Agents who join FEG, and do not become licensed, contracted with a carrier and have no Activity in their first 12 months may be automatically suspended by FEG. 


Agents with no Activity as defined below, in a 12-month period, may be suspended by FEG. 


Within the first 30 days of suspension, suspended agents can request a trial reinstatement, which will last for 90 days. During this 90-day time period, the agent must generate at least $6,000 in new target premium and recruit not less than 3 new direct legs to be reinstated. 

Any agent that is suspended, and does not qualify for reinstatement, must pay a $125 reactivation fee to rejoin FEG and will start over. They will be assigned a level based on FEG’s guidelines described in these Policies and Procedures. The agent may choose a new upline if they have been inactive for 6 months. Agents with a prior unpaid commission account or debt account balances must repay the outstanding balance before they are eligible for reinstatement. 


Suspended agents will continue to receive earned and renewal commissions on existing policies, but cannot be part of new policies. Suspended agents will not receive Base Shop or Base First production credit, except for personal business if Regional Vice President or higher. 


Agents that violate the FEG Agent Agreement or FEG Agent Policies and Procedures will be given notice to repair their violation. If the violation is not repaired to FEG’s satisfaction within 30 days, FEG shall terminate the Agent for Cause. Agents whose contract is canceled by a carrier for fraud will also be terminated for Cause. FEG will retain all commissions for agents terminated for Cause. Agents terminated for Cause cannot rejoin FEG, lose future commissions, and forfeit any accumulated ESP. Repeated violations of these policies will result in termination for Cause.
Agent Recruiting Rules


If an agent brings a guest to a business opportunity meeting, that agent’s guest will be protected for thirty days. The guest cannot sign up under another agent until thirty days after the opportunity meeting. To receive this protection, agents must document their guests by an email to their upline before or immediately after the event or opportunity meeting.


If two agents are trying to recruit the same person and the potential recruit has not been to an FEG opportunity meeting, the recruiting agent that is successful in signing up the new recruit first will be credited with the new recruit.


Cross recruiting is the solicitation of active FEG agents not direct to you for any reason, including product sales. Soliciting any agent, active or inactive, at any FEG event or agent hosted event is also cross recruiting. Using bulk email or any mass marketing to recruit active or inactive FEG agents not in your downline is not allowed. This includes recruiting for your FEG hierarchy or for non-FEG opportunities. Cross recruiting rules extend to anyone sharing income, an agent’s spouse, domestic partner or bonafide business partner. Cross recruiting is prohibited and grounds for agent termination for Cause.  
Beneficiary
Agents may name a beneficiary in the event of their death. The name and contact details of the beneficiary must be recorded in the FEG back office. Should this occur, FEG will pay commissions as described in the FEG Agent Agreement and in these Policies and Procedures. FEG reserves the right to require evidence that there are no conflicting claims before making any payments to the named beneficiary.   
If the named beneficiary holds a valid insurance license, they may collect overrides on new business. If the beneficiary is licensed and Active with FEG, they may retain the current compensation level with FEG approval. If the beneficiary is licensed but not Active with FEG, and the level is Regional Vice President or higher, at FEG’s discretion, the level may be dropped to Regional Vice President. 
In order to receive an ESP payout, the beneficiary must be approved by FEG. If the beneficiary is unlicensed, no new ESP points will be awarded. If the beneficiary is licensed and continues to follow the requirements of the ESP program they may accumulate new ESP points. 
If the beneficiary is licensed and active, they may sell the code as described in this document. If the named beneficiary does not hold a valid insurance license, the beneficiary only has the right to sell deferred commissions, earned commissions and renewals. All sales must be approved by FEG. If a beneficiary sells the business, all accumulated ESP points are forfeited. In the event of a sale of the deceased agent’s code, previously awarded ESP points will be considered earned and will be paid to the beneficiary should there be an ESP payout. 

Selling Agent Code


You may sell your FEG code to another dedicated FEG agent in good standing with FEG upon written approval by FEG. FEG has no responsibility to set the value of the agent code being sold. FEG has no responsibility to collect any of the agreed upon purchase funds at any time. 


Once the seller and buyer of an agent’s code inform FEG of the completed sale, updates will be made to the system to affect the change. All sales of an agent’s code are final. The agent code being purchased is locked down. The code cannot have have new direct recruits or new business on that code. The purchased code cannot directly transfer, have agents transfer directly to it, have new direct co-leaders, or be a new direct co-leader. It will remain in its original hierarchy position and the level will not be promoted or demoted. Purchased codes will not appear on leaderboards or be eligible for trips. Income generated from purchased codes shall be paid to the agent purchasing the code and the combined income will count towards recognition, rings and ESP.


Income generated by the prior agent before the code was sold will not be used for income credit towards rings or other awards. ESP points cannot be sold.


Only dedicated agents may buy another agent’s code. 
Persistency


To be eligible for certain recognition, bonus pools, ESP and trips, FEG will have rules for a minimum persistency. At FEG’s discretion, agents with poor persistency may be paid as-earned until improved results. Consistent failure to improve persistency will result in carrier contracts being canceled by FEG. 
Non Captive Agents
FEG is a non captive agency. You can have contracts with other life insurance and annuity carriers. However, you may not create new direct contracts and sell products from FEG’s existing carriers off-grid if FEG offers that carrier on-grid. 


Off-grid business, which is not run through the FEG commissions system, will not be counted for any recognition, awards, ESP or trips. Off-grid business includes carriers FEG is contracted with but does not offer the option of being on-grid. 
Rings
Rings are FEG’s most important recognition of status and success in the organization. A ring level is earned by the total on-grid income in any rolling 52 week period exceeding one of our ring levels. Once one of these ring levels is attained the agent has permanently earned the ring status, 


Ring earners will receive one physical ring when they attain their first ring level. For subsequent ring levels, FEG will add additional adornments to the agent’s ring to signify the new ring level. The first ring and all updated rings will be presented at the next FEG annual convention or other FEG meeting. To receive a second physical ring or adornment for a spouse or partner, agents may pay the cost of additional rings at the time the original ring is ordered. For $1,000,000 rings and above, an extra ring for a spouse will be paid for by FEG.

Spouses, domestic partners, or licensed business partnerships can qualify for a ring by assigning income credit to one of the agents and combining income credit. All parties must be licensed agents. 
Licensing
It is the agent's responsibility to obtain and maintain their state licenses, E&O (Errors & Omissions) insurance coverage, CE (Continuing Education) and AML (Anti-Money Laundering) training. Pre-Licensing training and Continuing Education instructions through AD Banker and ExamFX are available in the FEG back office. Once any licensing or training documents are obtained, please submit them directly to the FEG Licensing department at licensing@fegcorp.com. 
Contracting
FEG Contract processing time is between 1 and 2 business days excluding holidays. Carrier approved appointments will be sent to the contracted agent within 5 to 7 business days after submission. Documents submitted to FEG Licensing will be processed in the order in which they are received.  


Agent contracting is available in the FEG back office. In the event that the carrier does not accept paper contracting, instructions for how to complete the online E-Contract will be available. Contracts will not be submitted for any agent who have not yet obtained a resident state insurance license. With the submission of a carrier contract, the agent must submit the following; state license, E&O, AML, and any other supporting licensing documentation. 


The majority of FEG’s affiliated carrier contracting is by LOA (Licensed Only Agent) appointment only. Direct pay contracts that are approved and available will need to be requested from the FEG Licensing department. Direct pay appointments do not qualify for Income, ESP, Ring Totals or Trips.


Privacy Policy
Agents who join FEG agree to provide personal details, including legal name, address, email, phone numbers and social security numbers to FEG. This information is data you put on the FEG agent signup form, give to FEG support staff, when completing applications for carrier contracts and states’ insurance licenses, and is provided by insurance carriers to FEG. These personal details are required by FEG as part of its normal business operations. 


If an agent is a California resident, and does not have any outstanding debt, they may ask that their personal details be removed upon termination of their agent agreement by emailing support@fegcorp.com.  


FEG will not share agent details, active or inactive, including name, address, email and phone number, with any agents not in the current upline of an agent. FEG will not distribute lists of agents to anyone for the purpose of recruiting them or marketing to them.
Compliance and Additional Policies
Agents are to follow the proper channels when communicating with carriers on issues related to policies, commissions and contracting. Agents should consult the FEG back office  and FEG support before contacting carriers. Agents should only interact with FEG’S carrier support as each carrier directs. Issues unrelated to policies, commissions and contracting should always go through FEG directly. Agents are not to contact carrier management.


Agents must not misrepresent themselves as being an employee, officer or founder of FEG. Agents must not sign any loan document or lease agreement or any other contract on behalf of, or claiming to be a part of FEG. Violating this is grounds for termination for cause. 


Agents must not create or maintain social media sites, groups or profiles, including Facebook or LinkedIn groups, that use “FEG” or “Freedom Equity Group” as part of the profile or group name. Agents may not use any of the company logos as part of their social media profiles, groups or pages.


Agents must use the phrase “An Independent Agent”, or “An Independent FEG Agent” anywhere FEG’s name or trademark is used alongside the agent’s name or title. This includes any printed materials, such as letterhead, business cards or flyers. This also includes email, social media and any other electronic communications. 


Agents may only use FEG approved opportunity presentations and sales materials. Agents may not use the FEG name or logo without approval from FEG compliance. For approval contact compliance@fegcorp.com.


Agent photographs uploaded to the back office, or used with the FEG name or trademarks, must be high-quality professional shots. No candid or casual shots or busy backgrounds. Your photo must be a simple headshot of yourself or you and your spouse/partner. Wear business attire. No messages or logos. In most cases you should hire a professional photographer or use a professional studio.


Agents must abide by the insurance laws in each state that they write business in.


Agents must not falsify any client documents. This includes, but is not limited to using false addresses to write business in states they are not licensed in, or to sell products not available in those states.


Agents may not pass through FEG paid commissions to other agents unless approved by FEG. 


Churning is replacing existing client policies for the purpose of earning additional or higher commissions, or any reason that is not solely for the benefit of the client’s Insurance needs. Agents who churn client policies are subject to termination for Cause. Agents who collude for the purpose of canceling multiple client or agent policies will also be terminated for Cause.


Agents must not solicit, promote or sell any financial products or services that are frequently associated with misleading or deceptive promotional practices, including smart contracts, binary options, initial coin offerings (ICO), contracts for difference trading (CFD), non-fungible tokens (NFT) and cryptocurrencies.


Agents must not use auto-dialers for either phone calls or SMS or violate any provision of the Telephone Consumer Protection.


No agent video recording of speeches or presentations at Convention of Champions or Leadership Conference. FEG will make available approved video recordings for agents to post to social media and other public-facing sites - including Youtube. Videos recorded at other FEG events, including trips and dinners, must be approved by FEG before they can be posted. Any video of an FEG owner or staff at agent events must also be approved by FEG before posting.


Agents who wish to join another Insurance Marketing Organization and request a release from FEG, will not be granted a release without the approval of FEG and signoff from anyone who receives override or spread commissions in their upline, up to the first upline CEO or Chairman.
Definitions
Dedicated Agent - an agent whose personal production on all life and annuity business is 100% FEG with all commissions paid by FEG. Before receiving Equity Share Points or buying another agent’s business, agents must sign a declaration that they are not writing business off-grid with any carrier for Life Insurance and/or Annuities. This definition may be extended in other documents such as the ESP agreement. 


Activity - includes any new direct recruits, new personal policies submitted, attendance at the FEG annual Convention, attendance at FEG’s Leadership Summit, new carrier contracts, agent transfers or any appropriately documented training reimbursements. For the purpose of agent transfers, the submit date of the last policy, the date of the last new agent signup, and the first day of the last Convention or Leadership Summit will be used.


Inactive - an agent that has no Activity in the prior 6 months. 


One-year Inactive - an agent that has no Activity in the prior year, and did not attend the most recent FEG Convention. 


Persistency - this is the percentage of eligible life policies issued in the prior 2 years that have made it to renewals. FEG uses policy persistency which is the percentage of total number of policies that makes it to renewals. Policies are included in the calculations if they are 13-months old or older and less than 24 months old. If a policy pays any renewal premiums, even if they cancel later, they count for positive persistency.  Persistency is calculated on a pro-rata basis, if a policy is split with another writing agent, the target amount used will be multiplied by the split percentage. Agents with fewer than 5 policies will not have an established  persistency. 


FEG requires 70% persistency on personal business to qualify for trips, ESP and bonus pools. Agents that do not have an established a persistency rating, because they do not have 5 policies between 13-months old and 24-months old, will be treated as if they have 100% persistency, unless otherwise stated. 


Placement ratio - this is the percentage of submitted policies that issue. This is currently calculated only on policies with carriers that pay a partial advance on submit. Once a policy is 90 days past the submit date, it is included in the placement ratio calculations. Policies are only included in the calculations if they are less than 24 months old from the date submitted. FEG uses target placement ratio which is the percentage of total submitted target premium that issues. If an issued policy charges-back, it still counts for positive placement ratio. Placement ratio is calculated on a pro-rata basis, if a policy is split with another writing agent, the target amount used will be multiplied by the split percentage. A placement ratio is not valid unless an agent has 3 policies included in the calculations.


Cumulative value (CV) - the total recruiting or production points from personal business and all downline legs. 


Adjusted value (AV) - AV caps the points from any direct leg at ⅓ of the total CV for a given period. Personal production is considered as one leg for AV calculations. AV credit is currently updated after each commission run. Production and recruiting AV credit is calculated on a monthly basis.


1-yr InForce Ratio  - The percentage of target on all policies issued-paid in the last year by an agent that are still in-force and not lapsed or canceled. This will include splits. A InForce Ratio is not valid until an agent has 3 policies issued-paid.


As-Earned - First year commissions advanced to FEG will be paid at a rate of 1/12 per month.


Producing leg - For the purposes of qualifying for agent promotions, a producing leg is defined as a leg that has new policies submitted or issued within the prior three months. Personal production is not counted as a producing leg.

FEG Compliance Declarations February 2022

I have read, understand and agree to the terms of the FEG Compliance Declarations February 2022.
yes no

download the feg compliance declarations february 2022

							Freedom Equity Group Compliance Declarations
Effective: 02/05/2022

The Compliance Declarations are incorporated by reference into the FEG Agent Agreement. All agents must adhere to all of the provisions of both documents.


I agree to comply with the terms of the Freedom Equity Group, LLC (“FEG”) sales and conduct guidelines and I acknowledge all of the following: 


1. I have read and understand the provisions of the FEG Agent Agreement. I understand that I must comply with the terms of this Agreement and any Insurance Carrier guidelines in my business activities as an FEG Agent.


2. I understand that I am not an employee of FEG and my relationship with FEG is that of an independent contractor. Even though I may sometimes be given special titles or incorrectly referenced to as an employee by third parties, this will not change the fact that, by definition and by practice, I am an independent contractor. As an independent contractor, I understand that I will be responsible for paying for my own expenses as well as any and all federal, state, city or other taxes that may become payable with respect to any compensation I may receive from FEG.


3. I will not solicit sales of insurance or annuity policies, directly or indirectly, nor will I oversee other agents' solicitations, until I am licensed in the appropriate jurisdiction(s), properly appointed with the insurance carriers whose products I am soliciting, and covered by errors and omissions insurance.


4. I will not encourage or knowingly allow individuals to solicit or sell insurance or annuity policies without an insurance license. I understand that discussing specific companies, products, and features of products with potential clients or running insurance company illustration software for potential clients is considered solicitation.


5. I understand that I will not be paid or compensated for recruiting other agents. My sole compensation will be commissions paid by, or caused to be paid by, FEG pursuant to my agreement(s) with FEG, subject to the terms and conditions contained in the compensation guidelines, which are published by FEG. I also understand that there is no guarantee that I will earn income simply by entering into an Agreement with FEG.


6. I understand that, when recruiting agents, I should not say or imply to potential recruits that they will be paid or compensated for recruiting additional agents. In addition, I will not post “job offers” or imply that I am recruiting for salaried employee positions. In addition, I should not make any statements about my income or lifestyle that is likely to be interpreted as a representation or claim about the level of income or success one may attain by working with FEG.


7. I understand that any advertisements, sales literature, or presentation materials containing FEG trademarks, service marks or logos must be approved by FEG in writing prior to first use, even if I created the material, or if similar uses have been approved in the past. This includes but is not limited to advertisements, sales literature, presentation materials, training materials, newspaper ads, websites, radio ads, sales scripts, handouts, interest calculators, business cards, brochures, and flyers. You may not create your own sales materials using the FEG logo without the expressed written consent and permission from FEG. Failure to comply with this requirement may lead to termination of the FEG Independent Agent Agreement.


8. I understand that I may not use the offices, facilities, supplies, or any other property or resources of FEG for purposes unrelated to promoting the sales of products and services offered by FEG or its partner companies. This includes, but is not limited to, selling or soliciting products or services offered by an entity that is not in a business relationship with FEG, recruiting individuals to other unrelated business ventures, and any other unapproved activities which are competitive with the commercial and business interests of FEG.


9. I understand that FEG publishes guidelines and commission schedules from time to time on its secure website which relate to sales position designations, performance standards, commission rates, and other matters affecting the terms of compensation. FEG may, from time to time, in its sole discretion, increase or decrease the rates and amounts of commissions or the requirements for certain sales position designations; provided, however, that any such changes will only affect new business and any commissions earned thereafter. These changes will be updated on the FEG back office.


10. I understand that my commissions are a share of FEG commissions and that my commissions are not earned and payable to me until after: (1) the application is accepted by the applicable insurance company at its principal office; (2) actual payment for the same has been made by and received from the client; (3) FEG has actually received payment from the applicable insurance company; and (4) I am duly licensed and appointed in order to receive commissions.


11. For the purpose of calculating the commission obligations of FEG to an Agent, any offset and/or chargeback of commissions will be deemed as a negative commission reducing commissions earned by Agent.


12. I understand that advanced commission amounts are considered loans and that FEG reserves the right to hold any unearned commissions for a period of up to one year if; (1) I have not submitted business to FEG for a period of six months or more; (2) I am on administrative probation; (3) I have been terminated due to a violation of a statute or regulation, or a breach of this Agreement; or (4) I have resigned voluntarily and do not have enough earned commissions to offset potential chargebacks or advances.


13. I understand it is my responsibility and obligation to understand the features, advantages, and disadvantages of different products that insurance carriers offer to my clients. I further understand that the carriers will provide brochures and answer my telephone inquiries about their products and that I should utilize these resources when needed.


14. I should not represent to a client, or train other Agents to represent to a client, that a Life Insurance policy and/or an Annuity are a type of security or a bank savings plan. In addition, I should not state that Indexed products participate directly in the stock market.


15. I will not use or provide any policy illustrations except those expressly authorized by the applicable insurance carrier or FEG.


16. I understand that illustrations of an indexed policy are based on hypothetical rates, and illustrations for indexed products are hypothetical, which do not represent past or future results. I will not state or imply to clients that illustrations for indexed products reflect guaranteed results.


17. I will not recommend that clients borrow money, refinance or take equity from a client’s home for the purpose of purchasing insurance or annuity products


18. If I am not a licensed securities representative, I will not provide investment advice or make statements about securities products that could be considered investment advice. I will not recommend that a client purchase, sell, liquidate, surrender, replace, or withdraw from a mutual fund, variable insurance product, stock, bond, or any other security to fund an indexed universal life policy. I will not recommend that a client liquidate a qualified plan to fund a life insurance or annuity policy


19. I acknowledge that I must disclose to clients that there may be tax consequences or early withdrawal penalties associated with selling or cashing in stocks, bonds, IRAs, certificates of deposit, current annuities, or other assets to be used to purchase a new annuity. However, I will not provide or offer tax advice in regards to such tax consequences to the client at any time.


20. I understand that rollovers of 401Ks, IRAs, and other qualified accounts may have current or future tax consequences for the client that I may not be able to predict. Before a client transfers money from a qualified account, I will strongly urge the client to consult a tax professional. I will not provide or offer tax advice to the client at any time.


21. I acknowledge that the following statements are specifically prohibited by insurance carriers and/or state laws during sales presentations: (1) Annuities are 100% safe; (2) No one has lost money on an Annuity; (3) Annuities always have higher interest rates than CDs or other bank deposits; (4) Annuities are insured by the FDIC; (5) Annuities are insured by the federal government; and (6) No commission is paid on the sale of an Annuity.


22. I understand that, if appointed, my obligation is to be a representative for the insurance carriers looking out for the best interest of the insurance carriers. I will truthfully and fully complete the information on a life insurance or annuity application. I will not encourage a client to hide medical conditions, misrepresent medical conditions, or make false statements on an application.


23. I understand that, according to state insurance laws in most states, I am not a fee-based broker or advisor. I will not make statements that may lead potential clients to believe that the products I sell are the “lowest cost” or that my services are “free”, as such statements can be misleading due to my role as an appointed representative for specific insurance companies.


24. I will obtain copies of the applicable replacement procedures and forms required under the insurance laws of the state(s) in which I have an insurance agent license and fully comply with disclosure requirements during the sales process. I understand that under state insurance laws, a "replacement" generally may include the purchase of a new policy where it is known, or should be known to the proposing agent that, by reason of the new policy, an existing policy has been or is to be lapsed, forfeited, surrendered, terminated, reduced, or borrowed against.


25. I will not make false or misleading statements or fail to state material facts in connection with a sale. Specifically, I will clearly disclose all applicable fees, surrender periods, and any other information that is required to be disclosed to the client prior to completing a sale.


26. I will only use medical examiners that are ethical and certified by the applicable insurance carriers.


27. I will promptly deliver all policies and promptly remit all premiums according to each insurance carrier's guidelines. I understand that commingling premiums or borrowing premium funds is absolutely prohibited and may subject me to loss of my license and criminal prosecution.


28. I will not falsify or forge a client's signatures or initials on an insurance application, even with the client’s permission. I understand that I may be subject to both criminal and civil sanctions if I do so.


29. I will not borrow from, or lend money to, a client, agent, or any other person with whom I have a business relationship because of the inherent conflict of interest and the high potential of a dispute over unpaid loans.


30. If using calculators in a presentation to show the effect of compound interest, I will not : (1) use an exaggerated interest rate; (2) state or imply that insurance policies are an “investment product” or “savings plan”; (3) state or imply that past performance is a guarantee of future results; or (4) state or imply to a the client that calculators can be used in place of carrier illustrations, which account for fees and the cost of insurance.


31. I understand that it is my professional and legal obligation to safeguard any sensitive, private information of clients that I have in my possession. I will secure all sensitive and private information by taking measures such as shredding any unneeded documents, keeping printed client information in a locked file, and password protecting my computer equipment.


32. I understand that any failure to adhere to the provisions of the Agreement or the standards of conduct set forth above may result in: (1) administrative probation; (2) suspension and/or termination of my commission advances; (3) termination of my agreement(s) with FEG; and (4) if necessary, civil and/or criminal legal proceedings.

FEG Social Media Policy February 2022

I have read, understand and agree to the terms of the FEG Social Media Policy February 2022.
yes no

download the feg social media policy february 2022

							Freedom Equity Group Social Media Policy
Effective: 02/05/2022

FEG operates in a highly regulated industry. Our business model also receives additional scrutiny from States Attorneys’ General and the FTC, along with private organizations such as Truth in Advertising. 

FEG developed this policy to avoid any problems with agencies and organizations that may use social media posts as evidence of FEG not being in compliance. Remember, with FEG’s ESP program, we are all in this together.

Who Does This Apply To?
This social media policy applies to FEG managed corporate social media pages. This policy also applies to FEG employees, FEG agents, and FEG agent group social media pages - if a substantial use of those pages is to recruit new agents to join FEG. This policy is incorporated into and a part of the FEG Independent Agent Agreement. 

Think Before Posting
You are personally responsible for the content you publish on social media. Your posts reflect on FEG. Please remember that the internet never forgets - everything you publish will be visible to the world for a very long time. Common sense is critical here. If you are about to publish something that makes you even the slightest bit uncomfortable, reconsider.

Harassment
FEG has zero tolerance for racism, racial epithets, bigotry, misogyny, and express or implied threats of harassment or physical harm.  How you say something can matter as much as what you say. You shall not bully, harass, or threaten violence against anyone on social media. If you find yourself in a disagreement on social media, use a respectful tone or disengage.

Professionalism
Be professional, use good judgment and be accurate and honest in your communications. Errors or unprofessional language or behavior reflect poorly on FEG, and may result in liability for you or FEG. Be respectful and professional to FEG employees, business partners, and existing or potential agents.
 
Do Not Speak on Behalf of FEG
Other than the official FEG social media pages, you are not allowed to post on behalf of FEG, if the post can be misinterpreted as being an official post. 


If you communicate on social media about FEG, you must disclose your connection with FEG and your title or role. This is not required for each post, this can be done in the About section for your social media profile.  If an agent you must also include the phrase “FEG Independent Agent”. Do not shorten the CEO or Founder titles, you can only use Field CEO, Field Founder, or Field Co-Founder.

Use of FEG, Freedom Equity Group or FEG Insurance Services as part of your social media account name is not allowed without approval from FEG Compliance. FEG logos may not be used for social media images or background without approval from FEG Compliance. You may however, use FEG names in your posts and as hashtags.
Confidential information 

FEG confidential information may not be disclosed on social media. Expressly forbidden is sharing the name or personal identifying information about a client. This includes payout of a client death benefit or living benefits claims.
Insurance Sales

Any social media posts intended to solicit sales of insurance products must not use the name Freedom Equity Group and should instead use FEG Insurance Services. Use of the names and logos of FEG carriers and products must follow the carrier’s social media rules. Contact FEG compliance for more information. 
Income or Lifestyle Representations

Any posts that use the FEG name or logo and reference income or income levels attained by agents, including Ring Earner awards, or statements about income potential for agents, must include the following in your post. This must be immediately below the image if the income information is in a graphic. 


Please refer to the FEG Income Disclosure Statement:  https://id.freedomequitygroup.com/


Do not use small type. This disclosure statement must be sufficiently prominent so that it is not easily missed. Do not refer to COVID or Coronavirus in any recruiting posts whether they contain income or lifestyle representations or not. 
 
FEG Takedown Requests

FEG Compliance uses a third party company to monitor social media postings that refer to FEG in any way. If one of your posts is determined to violate FEG’s social media policies, you may be asked to modify or remove the post. You will promptly alter or take down posts identified. 
FEG Compliance

If you have any questions about this policy, or want us to review your posts, please send an email to compliance@fegcorp.com

FEG ESP2 Agreement July 2023

I have read, understand and agree to the terms of the FEG ESP2 Agreement July 2023.
yes no

download the feg esp2 agreement july 2023

							Freedom Equity Group ESP2 Plan
Effective: 07/01/2023
Freedom Equity Group (“FEG”) has established the Equity Share Points 2 (“ESP2”) Plan. FEG will share one-half of the net proceeds of a future sale of FEG equity with Eligible Dedicated Agents. The ESP2 Plan is NOT a Stock or Stock Option Plan or offer.  This is not an offer to sell, or the solicitation of an offer to sell a security. In November 2021, FEG sold 30% of the equity in the company and paid out ESP1. There remains 70% equity in FEG available for sale. 


FEG does not guarantee the sale of the company, and FEG is under no obligation to pursue or finalize a sale of the company or equity. FEG does not  speculate as to the value of the sale price. FEG reserves the right to change the rules for eligibility, dedicated agent definition and point accumulation at any time .


Agents become Eligible for ESP2 once they have achieved $100,000 in income from FEG in a rolling 52-week period. Only income earned on grid and tracked in FEG’s back office qualifies.


Agents must be Dedicated Agents to receive an ESP2 payout. Dedicated Agent status must be maintained from the time an agent first qualifies for ESP2 until it pays out. An agent that is not Dedicated at any time after qualifying for ESP2 forfeits all accumulated ESP2 points. An agent forfeiting their points after first qualifying, that becomes Dedicated again, may requalify for ESP2 by applying to FEG to be reinstated. Once approved by FEG, the agent will begin receiving new ESP2 points only after they have $100,000 in income rolling 52. Any forfeited points are not returned. 

A Dedicated Agent must meet all of these:


1. Captive to FEG for all Life Insurance and Annuity sales. This applies to an agent’s spouse, domestic partner, bonafide business partner or any agent receiving pay from the agent.


2. Does not participate with any network marketing company other than FEG.

3. Actively provides leadership to their downline team on a weekly basis. 


   4. Is in good standing with FEG and not suspended. Maintains a minimum of 70% personal policy persistency at 13 months. 


   5. Attends all FEG Conventions and Leadership Summits. Absences must be approved in advance of events.

   6. Has not had debt rolled to their upline after December 2020.




ESP2 will be paid pro-rata to all Eligible Dedicated Agents based on accumulated points. Agents begin accumulating points in the month they first qualify for ESP2. Agents who qualified prior to December 2020 will begin accumulating points in December 2020.


Points are awarded by FEG monthly and reported on the FEG back office. It is the agent’s responsibility to monitor accumulated ESP2 points. Agents must alert FEG to any discrepancy within 30 days of points being awarded. No changes will be made after 30 days past the date points are awarded. 


No ESP2 will be paid to agents with a negative balance when the ESP2 payout is made. Growth points are not awarded in the first month an agent qualifies for ESP2 or in the first month of the ESP2 program. 




ESP2 Points Qualifications:


Prior to December 31, 2021:


      * One ESP2 point for each dollar of income paid on-grid. This does not include prior ESP payouts. 


      * One ESP2 point for each Infinity AV Production point on the FEG grid. AV Production is defined in the FEG Policies and Procedures. 


      * Two bonus points for Infinity AV Production Growth. Growth is the increase in any month’s Infinity AV Production over an agent’s previous monthly high Infinity AV Production starting December 2021. Agents must have earned $100,000 income on-grid in the prior 52-weeks when points are awarded to qualify for collecting ESP2 Production Growth points. 


After January 1, 2022:


      * One point for each dollar of income paid on-grid. This does not include prior ESP payouts. 


      * One point for each Infinity AV Production point on F&G life products. One point for each Infinity AV Production point on ANICO term, GUL, GIUL and Whole Life products. One-half point for each Infinity AV Production point on other American National and all National Life Group life products. AV Production is defined in the FEG Policies and Procedures. One point for all Infinity AV Production on Annuities. The total points awarded are called “ESP2 Production Points”


      * Two bonus points for ESP2 Production Growth. Growth is the increase in any month’s ESP2 Production Points over an agent’s previous monthly high ESP2 Production Points starting December 2021. Agents must have earned $100,000 income on-grid in the prior 52-weeks when points are awarded to qualify for collecting ESP2 Production Growth points. 


After July 1, 2023:


      * One point for each dollar of income paid on-grid. This does not include prior ESP payouts. 


      * Two bonus points for Income Growth. Income Growth is the increase in any month’s income over an agent’s previous monthly high income starting June 2023. Agents must have earned $100,000 income on-grid in the prior 52-weeks when points are awarded to qualify for collecting ESP2 Income Growth points. 

      * One point for each Infinity AV Production point on all F&G Life products. One point for each Infinity AV Production point on certain Corebridge Final Expense and ANICO Term, GUL, GIUL and Whole Life products. One-half point for each Infinity AV Production point on American National IUL and National Life Group Term. One point for all Infinity AV Production on Annuities. AV Production is defined in the FEG Policies and Procedures. The total points awarded are called “ESP2 Production Points”


         * Two bonus points for “ESP2 Production Point” Growth. Growth is the increase in any month’s ESP2 Production Points over an agent’s previous monthly high ESP2 Production Points starting December 2021. Agents must have earned $100,000 income on-grid in the prior 52-weeks when points are awarded to qualify for collecting ESP2 Production Growth points.

Income Disclosure Statement

I have read and understand the FEG Income Disclosure Statement.
yes no

view the feg income disclosure

2023 Income Disclosure Statement

Freedom Equity Group offers a business opportunity that involves the sale of life insurance and other financial services products. FEG independent representatives are independent contractors, not employees. FEG independent representative earnings are based on the sale of products offered by FEG through one of several contracted life insurance companies. FEG independent representatives must obtain state insurance licenses and E&O insurance before they are eligible to sell FEG products or earn income from FEG. 

For the period January 1, 2023 through December 31, 2023, the average earnings of all licensed FEG independent representatives was $8,788. 

The cost to enroll as a FEG independent representative is $125. The cost for insurance license training is $30. The cost for a state insurance license varies by state and is between $80 and $200. The annual cost to maintain E&O insurance is $450. 

6.4% of FEG independent representatives who enrolled in 2023 obtained the necessary licenses to become eligible to earn commissions from FEG.

Agent Pay Grid

I have read and understand the FEG Pay Grid.
yes no

download the feg agent pay grid

FEG New Agent Signup

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FEG Agent Agreement March 2022

FEG Agent Policies and Procedures January 2024

FEG Compliance Declarations February 2022

FEG Social Media Policy February 2022

FEG ESP2 Agreement July 2023

Income Disclosure Statement

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