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SSA Handbook § 2136 says nothing about renewal inocme for insurance agents. So what's your point?
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This is a Great Business.
- Thread starter WinoBlues
- Start date
It is considered a "special payment".. The companies are not required to segregate the first year from the renewals.. You have to do the bookkeeping yourself. The earnings are still fully taxable but they don't count as earnings to reduce your SS benefit prior to your full retirement age.
Social Security Publications
Social Security Publications
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Funny thing is, the way the tax code is written, you are both probably right and both probably wrong... rule of law is great!!!
- 2,090
I've had a company get rid of my business to another agent number after I left. Well, it was most likely the manager giving it to one of his buddies, and switching the agent of record somehow, but it is done all the time.
- 657
HomeService,
Was this vested business? Was it a direct appointment with the company? Or, were the commissions assigned to your upline?
Was this vested business? Was it a direct appointment with the company? Or, were the commissions assigned to your upline?
Arthur Rudnick
Guru
- 1,652
What Bill is referring to is renewals for LTCi. Once a policy is sold, the renewals are 100% vested for life.
- 2,090
So was I. You don't think a company change the agent of record on long term care or life or health?? They can.
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It was a captive company, actually know of three companies that do this. Not sure if vested, { I think after 5 years they may be} but what they do is take your pending stuff when you leave and figure out how to not issue it, then give the lead to an agent who goes out re-writes it and he gets full commission. That's one way. Not a lot of business there. The next thing they do is make sure that if: you have LTC on the books, and they write a hospital indemnity or life case or med supp in that house, with another agent, they make sure that agent becomes agent of record and gets all renewals in the house. That's another way they do it.
There are a few more ways. One is: they sell that block of business. Had that happen before, with a health block, then I could not find where it went!! Nobody I called would admit to owning it!!
Another thing to do is raise the rates so high that everyone drops it, or if they do happen to lapse for whatever reason, they re-write it on an new agent number. Many ways of doing this. Not trying to scare you or say it going to "for sure" happen to you, but I'm just saying I've seen stuff happen before.
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When did they do that? Currently, anyone born 1960 or after gets full ss retirement benefits at age 67.
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You're right, sorry, I was off by 3 years. The politicians are pushing for 70 real hard, but 67 is as high as they have gotten so far. I stand corrected. I look for them to push it as much as possible between now and when it comes time to pay, because they know it's a broke system.
Arthur Rudnick
Guru
- 1,652
For LTCi, they cannot. I have not seen one example of it in my 17 years in the LTC business.
The only example I can give you was a few years ago there was a situation where a policyholder disliked her present agent. He gave her bad advice on a number of issues and she called the company to have a new agent assigned.
I was asked if I'd like to be her new agent? I said 'yes'. I became her new agent, but her original agent of record continued to receive renewals.
I only asked to be her new agent for the possibility of future referrals.
So, here's an agent that "lost" his policyholder, yet still continues to receive renewals.
Can you give me one example where a LTC agent had his policyholder "reassigned" for any reason and lost his/her renewals?
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