Involuntary Termination Causes
Why the company may terminate an IA.
What is Involuntary Termination?
The company ending your IA position due to policy violations or other serious issues.
Termination-Worthy Violations
Serious Policy Violations
- Income guarantees — Promising specific earnings
- Investment claims — Presenting CSR as investment
- Cross-recruiting — Recruiting from other lines
- Fraud — Deception, false information
- Illegal activity — Any criminal conduct
Marketing Violations
- Unauthorized materials — Using non-approved content
- False testimonials — Fake or misleading stories
- Prohibited claims — Medical, health, guarantee claims
- Misrepresentation — False statements about company/product
Business Conduct
- Operating in restricted areas — Unauthorized territories
- Multiple positions — Holding more than one IA position
- Identity fraud — Using another's identity
- Breach of agreement — Violating IA Agreement terms
Ethical Violations
- Harassment — Of customers, IAs, or staff
- Defamation — False statements harming company
- Theft — Of funds, data, or property
- Non-cooperation — With investigations
Warning vs Termination
- Minor first offense → Warning, education
- Repeated minor → Suspension
- Serious first offense → May terminate immediately
- Pattern of violations → Termination
Immediate Termination Offenses
Some violations result in immediate termination without warning:
- Fraud
- Illegal activity
- Severe misrepresentation
- Harassment
- Identity fraud
Investigation First
Before termination, company typically:
- Receives complaint or identifies issue
- Investigates claims
- Gathers evidence
- Gives opportunity to respond (usually)
- Makes decision
Denial of Wrongdoing
Even if you deny the violation:
- Company makes final determination
- Evidence is evaluated
- Decision may still be termination
- Appeal process available
See Involuntary Termination Process for next steps.