Farmers Life Insurance (New World Life)

WinoBlues · 11-03-2009, 05:26 PM

Anyone know what % Farmers pays a senior agent on Life Insurance? A guy that has his own office. Term, UL and Wl

kingkrazy · 11-04-2009, 07:03 AM

Not sure if this helps, but I don't remember reading anything in the contract stating a commision diffrence between a new or senior agent. Commision was 40% on term and 50% on all else. Now they do have quarterly life bonusses where you can achieve a greater commision on those policies written in that quarter, anything from an additional 10% all the way up to the other 50%.

WinoBlues · 11-04-2009, 10:39 AM

Cool, That helps a lot. Are these guys allowed to get outside life contracting? He has sent me a lot of his declines and hard to place stuff. It would be easier to just do an app split with him.

Thanks

Originally Posted by kingkrazy

Not sure if this helps, but I don't remember reading anything in the contract stating a commision diffrence between a new or senior agent. Commision was 40% on term and 50% on all else. Now they do have quarterly life bonusses where you can achieve a greater commision on those policies written in that quarter, anything from an additional 10% all the way up to the other 50%.

babloumar · 11-04-2009, 02:54 PM

Farmers pay approximately 38% - 43% of the commission that they would have paid the senior agent who produced the business. FIG has been sued by several agents for this, and in most cases FIG has lost.

dgoldenz · 11-04-2009, 03:45 PM

Originally Posted by WinoBlues

Cool, That helps a lot. Are these guys allowed to get outside life contracting? He has sent me a lot of his declines and hard to place stuff. It would be easier to just do an app split with him.

Thanks

You should be able to just write him a check and send him a 1099 at the end of the year as long as he's a licensed life agent.

Full Throttle · 11-04-2009, 04:57 PM

You should be able to just write him a check and send him a 1099 at the end of the year as long as he's a licensed life agent.

Unless Farmers is like State Farm where an agent can lose their contract by doing this sort of thing, even tough it is legal. If it doesn't work, is a spouse licensed or could she get licensed?

dgoldenz · 11-04-2009, 05:07 PM

Originally Posted by Full Throttle

Unless Farmers is like State Farm where an agent can lose their contract by doing this sort of thing, even tough it is legal. If it doesn't work, is a spouse licensed or could she get licensed?

Yes, that could be a problem if that is the case...

djs · 11-04-2009, 06:42 PM

The older contracts with Farmers are first right of refusal. If they are declines with Farmers, the agent could write them with another carrier with no problem.

As I understand it, the newer contracts are different.

Dan