Health Insurance Sales Commission Question

[Frank Stastny]

I don't understand how anyone can say that if an agent assigns their commissions that it "doesn't always mean you give up the ownership of your book of business".

When an agent assigns their commissions that means that the agent is not the AOR (Agent of Record). The person/agency they assigned their commissions to is the AOR. Insurance companies only pay commission and renewal checks to the AOR. In other words, the business is owed by the the AOR, not the writing agent.

If an agent leaves that person/agency they are no longer going to receive payment for the business they have written because insurance companies only send commission and renewal checks to the AOR.

In my experience anytime an agent assigns their commissions they receive a much lower percent of commission and renewals. The agent always loses in those deals regardless of what promises may be made to entice the agent to sign the contract.

I would never, under any circumstances, assign my commissions and I would caution agents to never do it either. If an agent isn't going to be the AOR they should run the other way at a rapid rate of speed.

 

[0b1kanobee]

If an agent isn't going to be the AOR they should run the other way at a rapid rate of speed.

Frank, I don' think anyone out there offering health contracts makes you the agent of record (that I know of) unless you go direct with the carrier but I could be mistaken.

You are the only entity I know of that offers contracts where you are not the agent of record and the agent is both the writing agent and the AOR (that I know of).

 

[YouGotMyMoney]

Frank, I don' think anyone out there offering health contracts makes you the agent of record (that I know of) unless you go direct with the carrier but I could be mistaken.

You are the only entity I know of that offers contracts where you are not the agent of record and the agent is both the writing agent and the AOR (that I know of).

Medicare products are a bit different than than individual health insurance, Frank's advice is solid because in most situations you would be sol, if you just assigned your commish over to any jerk off.

Truth is with individual health, if you want advances you need to assign commissions over to the agency, the carrier won't just advance you direct.

 

[Frank Stastny]

Medicare products are a bit different than than individual health insurance, Frank's advice is solid because in most situations you would be sol, if you just assigned your commish over to any jerk off.

Thanks. My bad, I should have specified Med Supps.