How To Make An Upline Change

Navigating the Upline Release Process for Insurance Agents

In any successful business relationship, all parties should benefit; otherwise, the partnership can start to break down. For insurance agents, there may come a time when an upline partnership doesn’t align with your goals. When that happens, it might be time to consider transferring to a new upline. Understanding the release process can make this transition smoother, especially since each carrier and FMO may have specific rules to follow.

Here’s a simple breakdown of release options, requirements, and helpful tips for a seamless transition.

Release Options: Signed Release vs. Self-Release

There are generally two main ways to transfer your contract to a new upline:

Signed Release

An agent may request an immediate release from their upline to transfer to a new FMO.

• Key Requirement: Only the top-level upline (usually the FMO) can sign the release for it to be valid. A signature from a mid-tier entity will not be accepted by carriers.
• Benefits: Once approved by the top-level upline, agents can transfer immediately without a waiting period.

Self-Release

If an immediate release isn’t granted, agents can use a Self-Release process. This option varies by carrier, but here are the main methods:

• Non-Production Period: Agents may be able to transfer after 6 months of non-production with their current upline.
• Intent to Transfer: An agent submits a formal notice to the carrier, which initiates a set time frame during which the agent can continue writing business. Once that period ends, the agent can transfer.

Example of Carrier Release Processes

Navigating the contract release process with a Field Marketing Organization (FMO) varies among insurance carriers. Below is an overview of the release procedures for three major companies:

1. Aetna Medicare Advantage/Part D:

• Notice of Intent: Agents must submit a notice and new contracting documents to Aetna to initiate the release process.
• Self-Release Period: Aetna typically enforces a 90-day waiting period during which agents can continue to write business.
• Transfer Freeze: Aetna implements a transfer freeze from September 1 through December 31, during which hierarchy changes are prohibited. 

2. Humana:

• Notice Submission: Agents are required to send a notice and new contracting documents to Humana to start the release process.
• Self-Release Period: Humana enforces a 90-day waiting period during which agents can continue to write business.
• Transfer Freeze: Humana enforces a transfer freeze from September 1 through December 31, during which hierarchy changes are prohibited.

3. UnitedHealthcare (UHC):

• Notice Submission: Agents must email a notice to UHC to initiate the release process.
• Self-Release Period: UHC enforces a 90-day waiting period during which agents can continue to write business.
• Transfer Freeze: UHC enforces a transfer freeze from September 1 through December 31, during which hierarchy changes are prohibited. 

Important Consideration: Transfer Freezes

Some Medicare Advantage carriers enforce transfer freezes during the fourth quarter (typically from September to December). During this period, agents are unable to transfer their contracts, regardless of the release method they’re using. If you’re planning a self-release, it’s crucial to start the process early enough to avoid this freeze.

For example, if your self-release period ends in the middle of a transfer freeze, you’ll be required to stay with your current upline until the freeze period lifts, usually on January 1 of the following year.

Final Thoughts: Knowing Your Options

If your current partnership isn’t supporting your success, it’s essential to know you have options. Familiarize yourself with the release policies of your upline and each carrier’s requirements before initiating any release. A little preparation can save you time and help you make a strategic transition without disruptions to your business.

Your growth and success are in your hands, but having supportive partnerships makes reaching your goals much easier. If you need assistance or have questions about release options, our experienced marketers are here to guide you.