More details to this question:
I am a multi line life and health agent. I was recruited by blue Cross to sell their product and sign a captive agent agreement. The rep from BCBS was well aware that we sold other and was told to be careful.After 7 years another agency complained to BCBS and the terminated our contract. We have proof that other BCBS agencies do the same.
1 ANSWER
Mr. Murray
Your relatiosnhip with BCBS is, of course, controlled by the terms of the contract. If you can show that BCBS was aware that you were selling other products and raised no objection, there might be a waiver but that would depend on whether the rep was a BCBS employee or agent so that the knowledge of the agent would be imputed to BCBS. Additionally, hopefully you have something in writing that you can point to which will establish the knowledge on the part of the BCBS agent. Otherwise it would be a swearing contest and that makes it an "iffy" lawsuit. As far as other BCBS agencies doing the same thing, in my opinion that would be irrelevant to your issue which is contractually based. Whether BCBS chooses to enforce other agents' contracts or not is not legally relevant to your situation.
Jay Levy
Answered on Nov 28th, 2015 at 10:41 AM