The agent`s pay is truly unlimited – the harder you work and the more business you write (and the more you write in ALL business areas), the more you will do. It is possible to get a significant scorecard bonus each year. The general public is very familiar with the company, so new agents will have immediate credibility and brand recognition. If you can be a service provider, you will be rewarded with trips around the world (Ambassador`s travel program). The case concerned three types of agreements between State Farm and independent contractors and insurance agents and their employees: (1) Agent Contract, (2) Flight Office Agents and (3) Personnel Licensing Agreement. Extensive proprietary information protection programs can reduce the risk of a company losing control of its trade secrets. A recent case in California is a good example of what can happen if a company does not systematically protect its proprietary information. The California Court of Appeal said in a contract violation complaint that several State Farm insurance companies were not authorized to impose trade secrets and non-competitive restrictions on employees of their independent agents. The Tribunal granted the motion for finding and termination sought by the officers.
Patricia Adkins Ins. The courage of the state farm agency. Car. In the. Co., 25 I Cases 1372 (Cal. Ct. App. While the officers do not explicitly dispute a provision of the ASA that gives the State Farm the right to terminate the appointments of agents as “authorized representative of the state farm at any time and for any reason,” the court warned: “State Farm must not use this provision to obtain through the backdoor what it cannot obtain through the doors of trade secrets and initiative provisions of LSA.” This case highlights the need for a systematic approach to ensure that company information is protected as much as possible. Employers can do this in part by developing and creating proprietary information and non-call agreements with their employees.
Other strategies, such as the inclusion of proprietary information restrictions in contracts with suppliers and customers, may also be appropriate. Some jurisdictions (but not California) may even allow alliances not to compete.