Need Some Advice from the Vets!

[NorTex]

I'm a new agent, just got my license and begin training soon. About 6 months ago I sold my business on a buy out agreement with me receivving monthly payments. Today I found out there is a strong probability the company is going to fold and declare BK and my monthly payments will stop. I have enough money to last me for 5-6 months before things get really tight. If I can't start generating a decent income before then I might be forced to file BK 7. So, my questions to the veteran's are;
1. After I get appointed with some carriers; how often do they your review credit history?
2. If I file for BK 7 will I lose my appointments I already got?
3. How will this effect my other appoitnments I want in the future?
4. Will this effect my commission structure on appointments I already got?

I appreciate all the wisdom from you Vets. I just don't want to get into this business, work my a$$ off, build a bob and decent income and then WHAM; my commissions are cut to a AE basis and I'm screwed with not enough income to pay my monthly bills. I have 2 young girls and a single dad and cant' afford to make a big mistake that could leave us in a bad situation. Thank you again!

 

[adjusterjack]

I'm a new agent, just got my license and begin training soon. About 6 months ago I sold my business on a buy out agreement with me receivving monthly payments. Today I found out there is a strong probability the company is going to fold and declare BK and my monthly payments will stop.

You need to talk to a business attorney who is familiar with business bankruptcy as you might be able to file an "adversary action" in your debtor's bankruptcy that might get his debt to you declared non-dischargeable. Long shot but if there is a lot of money at stake you can't afford not to consider it even if it costs you some money for an attorney.

1. After I get appointed with some carriers; how often do they your review credit history?
2. If I file for BK 7 will I lose my appointments I already got?
3. How will this effect my other appoitnments I want in the future?
4. Will this effect my commission structure on appointments I already got?

Though you might get anecdotal responses here you won't get the "reality" answers to those questions until you come face to face with any particular insurance company's practices and policies.

I just don't want to get into this business, work my a$$ off, build a bob and decent income and then WHAM; my commissions are cut to a AE basis and I'm screwed with not enough income to pay my monthly bills. I have 2 young girls and a single dad and cant' afford to make a big mistake that could leave us in a bad situation.

Then get yourself a full time salaried day job and sell insurance in your free time. My father did that for many decades and managed to support a stay-at-home wife and 4 children.

 

[Kimberly01]

I am a new Producer/Agent in Oregon. I am a bit concerned about the pay or compensation that I am currently receiving as a new producer trying to build the book. Right now I am receiving $10.25 an hour with a cap on that of 35 hours paid for the number hours I work but paid no more than 35 hours my commissions I have been told will be 75% of the 15% that is made and that is not on top of my outer hourly rate I am making my hourly rate is weekly and once I receive commissions that exceed that amount it is not an addition to but we'll replace it once the commission's exceed $1,500. My concern is or understanding was I would receive a base salary plus commissions. I haven't either grossly misunderstood how I would be paid or compensated or being fed a bit of smoke and mirrors. I guess my question is do most new agents or producers receive a base salary pay plus commission? Because right now there is no possible way the money I'm making is a livable wage for anyone to get by on. Any advice would be appreciated can someone tell me the most common way new producers begin to build a book of clients and yet maintain the bare minimum living lifestyle I just don't feel like what I am being told is up to standard or a fair wage by any means would love any feedback that I could receive. Thanks so much for your time.

 

[adjusterjack]

Kimberley, seems like you are getting a "draw" against commissions and the "draw" is based on the Oregon minimum wage which is $10.25.

That means you are on straight commission but are guaranteed your minimum wage for a 35 hour work week.

That's pretty standard. My commission contract years ago was just like that.

Do you have a written contract? If yes, you should read it.

If you don't have a written contract then, yes, I think you did misunderstand what you were told and all I can suggest is that you make a lot of sales if you want to make a decent living.

Bottom line, if you aren't happy with the terms of your employment you are free to seek employment elsewhere.