Commission Split

[John Horning]

I'm a newbie so I hope this question makes sense. I just received my Life & Health license and haven't signed up with any insurers yet. I'm wondering if it's possible to refer any leads I get to another agent (particularly if I have a client that could be better served by an insurer that I don't have an agreement with yet) and then split the commission with him.

 

[Todd King]

I'm a newbie so I hope this question makes sense. I just received my Life & Health license and haven't signed up with any insurers yet. I'm wondering if it's possible to refer any leads I get to another agent (particularly if I have a client that could be better served by an insurer that I don't have an agreement with yet) and then split the commission with him.

If you are not appointed with that company you won't be able to "split" commissions in the traditional sense that your name goes on the app and the company pays you. The agent that you're referring to will have to pay you out of his/her pocket and then 1099 you.

Then there is the issue of that agent keeping up with renewals, unless you are foregoing the renewals.

 

[John Horning]

Thanks! That clears things up. Looks like I can't avoid getting appointed by the insurers.

 

[BADTROUT]

You certainly CAN avoid it, but its in your BEST interest to directly appoint with the carriers. You can have someone write it letting them know that you are getting appointed and will BOR it for renewals. Many options, but I definitely would get that appointment if its an option.