Possible Outcomes for Charge Back Debt and Vector L

[Chazm]

Wait. You already know you have 2-3k of chargebacks coming?
I'm so confused. What are you writing these people that they don't want it after you sold it? Did you put a gun to their head.

I might have 1 chargeback in a few months that I get paid on immediately and they change their mind.

Maybe your end game is you plan on re-writing these clients that you most likely put on an over priced Bankers Med supp. If so, you're doing them a favor but yeah the company may go after you.

 

[WCMason]

Wait. You already know you have 2-3k of chargebacks coming? I'm so confused. What are you writing these people that they don't want it after you sold it? Did you put a gun to their head. I might have 1 chargeback in a few months that I get paid on immediately and they change their mind. Maybe your end game is you plan on re-writing these clients that you most likely put on an over priced Bankers Med supp. If so, you're doing them a favor but yeah the company may go after you.

The OP is confusing.related to how cancellations factor in, as raised in previous replies and yours. It sounds to me like the chargebacks are not related to cancellations but unearned advances, which a captive agency can collect from a departing agent. Because he left before he earned them they are not his to keep, but loans to be repaid.

 

[rousemark]

Wow You guys are really helpful THanks!!! (sarcasm)

disrespecting me because of insinuations.

I jsut wanted to know what that process looks like. Do they go after my car? etc etc. I literalyl have no cash on hand and am living rent to rent.

Not disrespecting you.. just answering your question. They will collect it by any legal means they have at their disposal. As far as insinuations, you are the one making it sound as if you are pulling a scam on the company by sending in apps getting an advance and then having people cancel the policy so you can rewrite them somewhere else. Most of the agents responding have been around a while and have seen this ruse used many times in the past by other agents.

 

[Chazm]

The OP is confusing.related to how cancellations factor in, as raised in previous replies and yours. It sounds to me like the chargebacks are not related to cancellations but unearned advances, which a captive agency can collect from a departing agent. Because he left before he earned them they are not his to keep, but loans to be repaid.

Oh ok. I was captive with GASB and they didn't do that, thankfully. Wasn't like I made much $ with them anyways.

 

[FLM2]

Agh, my bad...
So here's an example of why i need to cancel a policy

1.) prospect's effective date is 4 months down the road. (turning 65)
2.) I get an advance the week I wrote it.
3.) Prospect asks me to cancel policy, they went with someone else or they changed their mind. etc.
4.) I hold off on canceling the policy until near the effective date (more cash on hand)
5.) My boss thinks I'm scamming

My main concern then, is what are possible outcomes of hot water if I cannot pay in time of 2-3k debt. What could happen - worst case scenario?

I hope you have learned a very valuable lesson-if you work for companies (like Bankers Life) who rely on misrepresentations to sell their products you fall down to their level very quickly.

As others have said, not cancelling a policy after the client has said to cancel is just plain wrong.

If you want to be successful in this business, take the hit, pay back the advances to Bankers over time (they will no doubt give you a payment schedule because they know if they don't they will get nothing), deal with the Vector (they will no doubt report it, that's what they do) with future appointments, and do things right from now on.

 

[Winter_123]

I just want to get my mind right. I hope someone with a lot of first hand experiencce and hindsight into this matter can give me truth to the reality of how these situation are handled ...

Thank ye kindly!

One of the reasons why carriers are concerned about financial and credit issues is that agents sometimes begin to act recklessly when they are in a tough spot and put their needs ahead of their ethical responsibilities. You have already started down that road. This is not an assumption or judgement on my part. I am simply reading the words that you wrote.

You are trying to accomplish two things: 1) How to work out a plan for paying off a debt and 2) How to make sure it does not impact your future work as an agent.

My suggestion would be that you find a job in another field and then use your more predictable income from that field to work out a payment plan. I am not supportive of your attempts to continue on in this field. I do not see that as being in the best interest of either the clients or the carriers that you would be representing.

This may sound harsh but it is not. You can probably leave the field and just tell a future employer that insurance was not for you and move on. If however, at some present or future time, you leave and there are (choosing my words carefully here) "honesty" issues attached to your departure then that is life-limiting- not just insurance career limiting.

Press the reset button- call yourself to a higher order in life- and move on to another field.

In regard to the payment due issue, I imagine (but don't know) that they will not take you to court but will just sell your debt to some collection agency scumbag who will threaten to take you to court day and night. If you have a regular job somewhere and can make a regular payment on it, even if it is a small amount- then that is the only thing that will keep them at bay.

As an aside, you might consider filing for an extension to file your taxes to give you a little more breathing room while you are trying to figure this out.

Best of luck.

 

[dirtydiggler]

Wow You guys are really helpful THanks!!! (sarcasm)

disrespecting me because of insinuations.

I jsut wanted to know what that process looks like. Do they go after my car? etc etc. I literalyl have no cash on hand and am living rent to rent.

You should move to mexico, that's the only way you'll be safe...

 

[b61mack]

most likely they will give you a pay back schedule. if you don't adhere to it..

 

[finalexpenseguru]

Wow You guys are really helpful THanks!!! (sarcasm)

disrespecting me because of insinuations.

I jsut wanted to know what that process looks like. Do they go after my car? etc etc. I literalyl have no cash on hand and am living rent to rent.

They will go after your car. Bankers life has a tow truck with BL&C on the sides of it in all their major marketing areas (Louisville, Evansville, Charlotte).