- 4,028
Chargeback Dating
- Thread starter PhxSunsFan
- Start date
- 18,989
You can't be seriously asking the stupid shit you have been asking the last few days.
Most companies do not chargeback commissions on paid premiums for lapses. However if you received an advance, they will charge back the payments made on premiums not paid.
Last edited:
The Deplorable
Expert
- 30
Is that you Cyborg7 ? Need to dust off the Bunny Suit, Easter is just around the corner...
You get a six month advance and the case only pays three months your companies do not charge back the three months unearned? You must not have many companies.
- 18,989
You get a six month advance and the case only pays three months your companies do not charge back the three months unearned? You must not have many companies.
Not always the same. A couple come to mind immediately, Americo and Prosperity. If the client doesn't pay 4 months it's 100% chargeback. Doesn't matter if it's as earned or advanced. They charge back. I'm sure others have crazy rules too.
Back when I first started writing Foresters 15 years ago they had a 6 month rule. If the client didn't pay 7 months it was a 100% chargeback. Months 7-12 were 50% chargeback. They did later change that when they got into FE.
F&G had th same 3 month rule when they sold policies.
Grange had a 12 month 100% chargeback rule. Didn't matter the reason. If the client didn't pay 12 months it was 100% chargeback.
KSKJ has a rule for 1st year agents. 100% chargeback for any reason just like Grange. After 1 year of being contracted their rule goes away. But theirs is subjective. They will only enforce it if they feel the agent is sending bad business. They will chargeback and term the agent. I don't know if they have ever used it. I know I lost a could my first year with them and I was not charged back 100%. But the rule is there and in your contract.
Agents do need to know about these things. And certainly an agent that's recruiting and already has downline agents should know without having to ask on a forum.
I wrote about 12 grange in 2016 and then they pulled out of the independent Fe side . As I recall they only checked mib and not rx. I never had any chargebacks but I was very careful who I wrote . I still get a small renewal check . I only write prosperity for de and certain graded and modified . I believe prosperity is the only carrier that pays full the same comp on level , graded or modified .
I know about that type of contract. Manhattan has a charge back on their ViVa life series that charges back 100% of commission if the policy does not pay three months and then charges back 50% of commission paid if it lapses during the next 12 months. Have written plan with them since they added that to the contract even though I like the plan.
But Billy stated "I only work with companies who do not charge back for lapses, as earned or advanced." I don't know of any company that will not charge back unearned advanced commission. If there is one, they sure will taken for a ride if many of the crooked agents out there find out about them.
Have a small regional carrier that pays the same comp on immediate benefit plans and ROP plans. Same premium for smoker, non smoker, immediate benefit and ROP. Makes it nice when you submit one immediate benefit and it comes back ROP. With most companies you have to sell not only the ROP but also a premium increase, Not so with this one. Also does not charge back commission if death occurs in the first year like most companies.
