AXA Leader Potential Bankrupt

In AXA agency agreement - Unit Manager and Agency Manager stood as “Guarantor” for himself, his agents and agency leaders under his supervision. 

What is a Guarantor?

In AXA agency agreement - Section 9.10 (a) and (b) – a Guarantor - agrees to be responsible for any debt, obligation, or liability due or owing or likely to become due or owing to the company by himself, his agents and agency leaders under his supervision. 

What Event?

An agent or agency leader under your supervision may have conducted one of the many actions:-

1. Free Look – customer returns the policy during the free look period.  AXA will refund 100% of premium and clawback all commissions, overrides and benefits paid
2. Mis-selling – customer lodged a complaint on agent mis-selling. AXA will refund 100% of premium and clawback all commissions, overrides and benefits paid
3. Misappropriation of premium – customer lodged a complaint on agent misappropriating premium. AXA will recover all commissions, overrides and benefits to repay customer
4. Customer sue Agent & AXA – AXA will recover all costs and liabilities from agent

Impact On Guarantor

AXA will initially seek to recover from your agent or agency leader under your supervision. Failing which, AXA will recover the same from you – as a Guarantor. In addition, under the agency agreement – you have also waived your right not to challenge, object or take any action against AXA. 

Open Liability

Example - if one of your agent or several agents - had received RM10,000 commissions and benefits from AXA. One day – customer(s) lodged complaint on mis-selling. AXA proceed to clawback from your agent(s). Your agent refused to pay and run away. AXA will then clawback RM10,000 from you as a Guarantor. Standing as Guarantor with unlimited amount - can potentially bankrupt you as AXA Agency Manager.

Competitor

AIA, Great Eastern, Prudential or Allianz does not have this so-called Guarantor Clause in their agency Agreement. These better managed insurers are more intelligent and uses other method to protect their agencies. Axa’s management is “Bangang” and is unable to protect its agencies. Now we know the reason – Axa is rotting at the bottom of a cesspool when AIA, Great Eastern, Prudential and Allianz is successful and growing rapidly.