Question About GI and Graded Policies

[SammyJ]

Todd several Imo's will cut checks on their own every 3 to 6 months even if a carrier has production requirements. Matt is correct. If you're a good safe agent making 10-15% is better than zero.Some Imo's do this on gerber as all writing agents can only make 60%.

 

[NSRH]

Actually it is, but go ahead and give me the name of the group that gets the agents over 80% with no proof of production. I'll get their ass busted! I believe in a level playing field. If I have rules to follow then everyone should have to follow the rules. No exceptions.

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You are just so wrong on all counts here. I know it's the new "cool" thing to say that the IMO's are the ones that came up with it, but companies had structure in place for many years before IMO's really even came into existence like they are now.

I wasnt calling you out specifically, but the industry in general. Your threat of "busting" someone proves that it is IMO driven. What difference does it make to you if another IMO pays more? Just because its "the rule" is not a good reason.

The carrier makes the same if an IMO pays their agents 10% or 110%.

Im not trying to be "cool". Simply stating facts.

The "street level" gimmick is totally IMO driven. Respectfully, you've proven that.

Do you also think the six month no release rule is the carriers idea too?

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Todd several Imo's will cut checks on their own every 3 to 6 months even if a carrier has production requirements. Matt is correct. If you're a good safe agent making 10-15% is better than zero.Some Imo's do this on gerber as all writing agents can only make 60%.

This is normal in the industry to circumvent the "street level" gimmick.

A carrier WILL terminate an IMO for advertising this, so its all under the table. The only reason carriers enforce this is because of the pressure put on by other distributions (IMOs). It doesnt affect their bottom line.

 

[VolAgent]

This is normal in the industry to circumvent the "street level" gimmick.

A carrier WILL terminate an IMO for advertising this, so its all under the table. The only reason carriers enforce this is because of the pressure put on by other distributions (IMOs). It doesnt affect their bottom line.

In this case, I suspect you are dead wrong. Please remember, Gerber is New York admitted, domiciled in fact I believe. They have to comply with New York comp rules.

Now, for the other companies, maybe, maybe not. For Gerber, it is actually them complying with New York rules. And New York being the great state it is, requires an admitted company to apply their comp rules to all states, not just New York.

 

[NSRH]

In this case, I suspect you are dead wrong. Please remember, Gerber is New York admitted, domiciled in fact I believe. They have to comply with New York comp rules.

Now, for the other companies, maybe, maybe not. For Gerber, it is actually them complying with New York rules. And New York being the great state it is, requires an admitted company to apply their comp rules to all states, not just New York.

You are correct about NY comp rule. In that case it would be against the law for a carrier to above a certain threshold. But that is the carrier, not the IMO.

 

[Todd King]

Todd several Imo's will cut checks on their own every 3 to 6 months even if a carrier has production requirements. Matt is correct. If you're a good safe agent making 10-15% is better than zero.Some Imo's do this on gerber as all writing agents can only make 60%.

Okay, but they are paying that out as a bonus. That's not what I was talking about. My point is that most of the insurance companies will only approve a certain level without proof of production.

Matt keeps indicating that there are certain IMO's who can get you higher levels from the company without having to show proof of production and without doing a bonus type deal.

Now, there are some exceptions to this rule and I get that, but I'm trying to get him to name a few IMO's that can give out higher than street on any contract that they have. He's the one that keeps saying it and I just want him to back up his words.

 

[senior-advisor-indiana]

Actually it is, but go ahead and give me the name of the group that gets the agents over 80% with no proof of production. I'll get their ass busted! I believe in a level playing field. If I have rules to follow then everyone should have to follow the rules. No exceptions.

This is a good reason not to advertise what IMO's give the best deals. There have always been IMO's with this attitude but I have always found some that will give well above what most will.

It is getting harder to find IMO's that will do this but they are out there. Looks like you threw your name in the hat as one not to call for higher contracts...

 

[BibH]

An example is prosperity the new fe company.I think street is 115%. Somebody offered me 130%. I'm assuming some Imo's are at 150% plus.

 

[NSRH]

An example is prosperity the new fe company.I think street is 115%. Somebody offered me 130%. I'm assuming some Imo's are at 150% plus.

Prosperity does pay very well. I believe they also do not cut commissions for their graded or modified (whatever it is). But the renewals are one of the lowest Ive seen.

 

[Todd King]

This is a good reason not to advertise what IMO's give the best deals. There have always been IMO's with this attitude but I have always found some that will give well above what most will.

It is getting harder to find IMO's that will do this but they are out there. Looks like you threw your name in the hat as one not to call for higher contracts...

Not necessarily. There are companies that allow us to give more than the set street level, but it's not all of them. Some are absolute sticklers on it. That's what I'm talking about. However, when Matt posts something about going through certain places to get higher than street, he says it like they will do it for every company when it's just not true. But every time a post comes up about what street level commissions are, he's like a broken record saying that the agent can get higher than street depending on who they go through. He never tells you who to go through and he never specifies that it may be paid out by the IMO in a form of a bonus though. If that's what he's referring to then he should say so.

 

[donamese]

It is a dangerous game for the IMO to hand out higher contracts as well...they are on the hook for debit balances. The more you give the agent the higher the debit potential and the less you make to cover it. All things being equal, if I give 120 and make a 20 overwrite, it is a 5:1 ratio to cover the debit on a policy, if I give 130 and keep 10 it is now 13:1.