Commissions for NY Agents

JayG · 07-27-2009, 04:10 PM

Hi:

I am a soon to be licensed agent in NY (already passed test and applied for license).

I understand from speaking to people that NY agents are not allowed to earn more than a 50% commission on first year premiums and that NY is probably the lowest. Other states, I understand, allow for commissions as high as 90% or even higher.

Did I hear correctly? Is there anyway to get around this?

Thanks for any information you can provide as I am trying to become as informed as possible before venturing out.

Thanks.

SydRogers · 07-27-2009, 06:24 PM

You should seek out a NY brokerage general agent and ask for an 80% first year commission contract in exchange for a serious committment to do $25,000 or more of premium.

Good luck!

YouGotMyMoney · 07-27-2009, 06:37 PM

Damn I knew Health commish was the lowest in NY, but Life too?

insuranceexec · 07-27-2009, 07:49 PM

NY has low compensation because of the reserve requirements that the state of NY has in place.

What lines are you going to be selling?

Some companies have little incentives on the back end that in some cases pay monthly, thereby taking the comp over 99%.

They get around this by calling it a "Renewal Bonus", and is not subject to the FYC (First Year Commission) restrictions.

If you are an agent that is going to be needing a great deal of "handholding" in the beginning than go with a local GA that can show you the ropes.

If not, and you are looking for some good contracts in the 80% range; give me a call!

I hope this helps..........

JayG · 07-28-2009, 09:34 AM

Thanks for your reply.

I am a newcomer to the field of insurance (coming from an accoutning background) so I am thinking I should go work with a local office for about a year or so until I am comfortable before venturing out on my own.

I hope to be speaking with Principal Financial so I will find out what incentives and benefits they might have in addition to FYC.

Ruck4Life · 07-28-2009, 10:37 AM

Originally Posted by SydRogers

You should seek out a NY brokerage general agent and ask for an 80% first year commission contract in exchange for a serious committment to do $25,000 or more of premium.

Good luck!

Is this $25,000 a month or a year? No GA is going to offer a contract for 80% on just $25k a year in premium.

Also, there are limits to FYC in New York but most companies tack on production and persistency bonus as well.
If your starting off new in this, your primary focus should be going to an agency that can accelerate your learning curve the first year. The more knowledge you have, the more you'll stand out. Plus, find a mentor that can teach you the industry.

Hopefully this helps

insuranceexec · 07-28-2009, 11:37 AM

Originally Posted by Ruck4Life

Is this $25,000 a month or a year? No GA is going to offer a contract for 80% on just $25k a year in premium.

Also, there are limits to FYC in New York but most companies tack on production and persistency bonus as well.
If your starting off new in this, your primary focus should be going to an agency that can accelerate your learning curve the first year. The more knowledge you have, the more you'll stand out. Plus, find a mentor that can teach you the industry.

Hopefully this helps

There are several companies that exceed 99% FYC in NY, and 80% should not be that hard to find.

I do agree with you on the fact that being a new agent he should be mentored or at least monitored; which is one in the same.........LOL

SydRogers · 07-28-2009, 03:32 PM

$25,000 premium per year. Sorry I didn't make that clear.