Commissions Paid in Full or Monthly?

[mdl]

Do carriers pay commissions immediately/up front when a insured pays his or premium or are they paid out on a monthly basis? for home, auto and life?

Thanks!

 

[WinoBlues]

Do carriers pay commissions immediately/up front when a insured pays his or premium or are they paid out on a monthly basis? for home, auto and life?

Thanks!

Life - if the premiums are paid monthly you are paid monthly unless you are on an advance. Then you could get 6 to 9 month advance usually. There are some variations like monthly direct, Direct Express or credit card payments.

 

[indienoise]

Nonstandard auto tends to be as earned, some larger ones pay in full. Standard auto and home pay in full as written. I actually prefer as earned so I'm not messed up by chargebacks, and makes my monthly income more predictable. Hate having a huge month followed by a stinker and just barely covering expenses, ya know?

 

[LGilmore]

I prefer as earned and do that even if annual is offered. Why? Chargebacks are a bad word, and like many agents, if I kill an elephant one month I tend to feed off that elephant for the months following rather than continue hunting. As earned keeps me hunting every month.

If you're wondering if I lack self control about annualized commissions the answer is yes. So I purposely do as earned. Know yourself and your habits. This is also why I bottle my beer rather than keg it. A keg would be like having your own slurpie machine in your house.

 

[cgreene]

A lot of life companies have switched to advance. I prefer this because I have only had a few charge backs in six years. On auto and home I have never dealt with a company that didn't pay in advance. This is where most cancellations come from.

 

[Gooner]

A lot of life companies have switched to advance. I prefer this because I have only had a few charge backs in six years. On auto and home I have never dealt with a company that didn't pay in advance. This is where most cancellations come from.

You don't sell enough life insurance them

That's a joke people, I'm just funnin the guy

 

[cgreene]

No I sell the right kind to the right people that's the difference about 40k in premium a year.

 

[Gooner]

No I sell the right kind to the right people that's the difference about 40k in premium a year.

I was just joking with you. For a P&C guy $40k a year is good...now multiply that by 6...you get a lot more CB's that way.

 

[cgreene]

I have never gotten paid renewal on life so never been an issue.