Commission Give-Back From Insurance Company

[chatra3]

I need some experienced people to help me out here.

In the life insurance industry, I understand part of the the pay structure with some companies.

My main focus here is in Florida.

So lets say you sell a life insurance policy in Florida and you get 60 percent commission of the monthly payments for the first year.

Now after a year and a half the policy holder drops their policy.

I understand that you (The Insurance Agent) are required to pay back the commission, but do the insurance companies have the right or legal grounds to go into your - private checking account - and remove the amount of money owed from the commission?

I mainly talking about the State of Florida.

Does the Florida Insurance Commission make you sign some type of agreement giving rights to the insurance company to legally go into your personal checking account to obtain this money back?

Or is it the insurance companies themselves that make you sign an agreement giving them rights to access your private checking account, incase a policy holder drops thier policy after the first year?

I'm asking because someone close - who is asking to borrow money - said the insurance company he sold for went into his personal checking account and recouped their commission. I didn't think they would have a right to do this (go into personal checking), however I understand the insurance company has a right to get paid back.

Any advice?

 

[Newby]

I need some experienced people to help me out here. In the life insurance industry, I understand part of the the pay structure with some companies. My main focus here is in Florida. So lets say you sell a life insurance policy in Florida and you get 60 percent commission of the monthly payments for the first year. Now after a year and a half the policy holder drops their policy. I understand that you (The Insurance Agent) are required to pay back the commission, but do the insurance companies have the right or legal grounds to go into your - private checking account - and remove the amount of money owed from the commission? I mainly talking about the State of Florida. Does the Florida Insurance Commission make you sign some type of agreement giving rights to the insurance company to legally go into your personal checking account to obtain this money back? Or is it the insurance companies themselves that make you sign an agreement giving them rights to access your private checking account, incase a policy holder drops thier policy after the first year? I'm asking because someone close - who is asking to borrow money - said the insurance company he sold for went into his personal checking account and recouped their commission. I didn't think they would have a right to do this (go into personal checking), however I understand the insurance company has a right to get paid back. Any advice?

With most companies you get to keep the commission. If he had a policy recinded he would have to pay it back. They shouldn't be able to take the money from his account but if he owed it he likely wrote them a check for it.

 

[WinoBlues]

It is your/his upline not the company or the state.