CA IFP Commission Holdup

[Dave020]

http://www.cahba.com/advice/2013/07/carriers_submitted_their_propo.html

Why Don't Carriers Release Commission Schedules?
By Phil Daigle on July 16, 2013 1:19 PM
Posted: 17 Jul 2013 03:49 PM PDT

**Question**: The carriers know exactly what the commissions are for 2014. Why haven't they released them?

**Answer**: The carriers submitted their proposed commission plans for approval by the state governing bodies - DOI and DMHC - about 2 months ago. They probably thought that they would be rubber stamped in short order and that's why they told us that we would see commission schedules in June. But approval was delayed, and at least one of the primary California carriers was told by the DMHC that their commission plan was unacceptable. That took place just 2 weeks ago. So for at least one Covered California insurer the agent commission is yet to be determined. I expect all carriers will release their commission rates together to prevent unfair competition while changes can still be made.

 

[AllenChicago]

If the "approving bodies" pressure the insurers to reduce commissions too much, I hope the agents fight back by not selling any exchange-based policies. Get Certified to sell, but don't do it. Make the DOI & DMHC see the error of their ways REAL quick!

 

[houcoogster]

Or could it be they know what the commissions are and aren't releasing them in order to prevent a huge agent force backlash in the media and elsewhere before launch date?

 

[Dave020]

If the "approving bodies" pressure the insurers to reduce commissions too much, I hope the agents fight back by not selling any exchange-based policies. Get Certified to sell, but don't do it. Make the DOI & DMHC see the error of their ways REAL quick!

Commissions are required to be the same inside and outside of the exchange. If they low ball them, agents will balk the entire IFP market.