Independent Producers of America. The ABBA stands for America's Business Benefits Association. Both of these organizations are in the health insurance, accident and critical illness insurance industry
After retiring from a different industry, I was recruited to become a health insurance agent with IPA-ABBA. I took the suggested classes and sat for the State of Colorado licensing test. During these classes there were numerous things that were pointed out that were illegal while selling insurance in the state. That is why during training with the company I was surprised by two Managers, James Sackos and Dan Denui who were urging agents to participate in rebating to consumers to increase sales which is clearly illegal.
In addition, the company offers a membership accident and critical illness policy that is not tied to the health insurance products they feature. Mr. Sackos and Mr. Denui insisted to us agents that the accident and critical illness policy be presented and sold to consumers in a manner that is not truthful. They urged us to tell consumers that if they did not buy the membership they could be singled out for rate increases. This is clearly illegal in Colorado.
When I was recruited by IPA I was told that we were independent contractors. But as I began working with them I found out that they have numerous rules that blur the distinction between IC status and that of an employee. For example, we were told how we had to dress for meetings. We were told that meetings were mandatory. We were also told that we needed to work a minimum of 40 hours per week to keep them happy.
My advice to any person considering selling for IPA-ABBA here in Colorado... Don't! Their coverage is expensive when compared to the competition. They are consistently 90 days late in paying commissions. They regularly change the terms of their ABBA membership without notifying agents in the field and they regularly encourage their agents to break state laws in their efforts to maximize sales. There are numerous agents who have worked for IPA here in Colorado who are due back end commissions by agreement, who have not been paid a dime by IPA since leaving.
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