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- #11
- 379
It is not American Amicable. You can do a minimum face amount of 5,000 the premium can be low as a few hundred dollars.
Shooter
Does Your Commission Come from the Company, or IMO?
- Thread starter shooter
- Start date
It is not American Amicable. You can do a minimum face amount of 5,000 the premium can be low as a few hundred dollars.
Shooter
- 7,066
You know, just as I know that it definitely does. There is enough abuse
Never take the chance, just don't ever do it is my opinion.
A lot of us have been screwed over by assigning commissions in the past. Sometimes, it's part of the learning curve in this industry. We learn, quickly, not to let it happen again.
Fool me once, shame on you; fool me twice, shame on me.
- 7,066
Let me hear a big AMEN on that one.
Depending on the brokerage outfit and their respected payout levels, they have the ability to put you at the highest comp level a carrier will allow. You would get that amount direct from the company and the overide comes from the brokerage firm. For example, if street comp is 80 and they pay you 80, its not worth it IMO. However, most reputable brokerage firms will pay you the max amount a carrier will direct and then you give you the overide. So say the max amount is 90 a carrier can pay direct, and the brokerage firm is paying you 100, the 10 points would come direct to you from the brokerage firm. Also the level of comp also has tiers on the renewals. The higher the direct comp the higher the renewals. Also if you have the right brokerage firm they wont require a contract, you place business when you want to and there is no assignment of commissions.
- 7,066
That is not always true. There are FMO's that offer above street level contracts and the agent gets the increased commission directly from the company.
FE contracts can be offered to an agent at several different commission levels above the street level and the agent will receive all of their money directly from the carrier. Some FMO's can also do that with Med Supps.
If anyone tells you they can't do that I would do some research before signing anything. I don't want anyone receiving my money and the risk having a situation occur where I have to go "begging" to get all of the money I have earned.
If they are really going to "give" it to me anyway then why should it go to them and not directly to me?
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Frank,
That is what I'm saying there are generally as many as five levels above street comp, depending on the level of the brokerage firm. The 90 was an example...
That is what I'm saying there are generally as many as five levels above street comp, depending on the level of the brokerage firm. The 90 was an example...
- 7,066
Yes there are.
If an agent deserves a higher percent of commission I will give it to them and all of it comes directly from the insurance company. Anyone who tells you different is blowing smoke at least in the Med Supp market.
I tell the companies the percent of commission I want them to pay to the agent. They don't send the above street portion to me to pay the agent. I would never operate that way.
I want no part of the agent's commission. The agent earned it by busting his ass and it should all go directly to him/her.
- 18,988
Assigning commissions is lesson that most of us learn the hard way. Even when warned it doesn't sound that bad. It's just like a child having to get burned sometimes to learn to avoid the fire.
I learned my lesson with the worst of the worst, P and A. I will never, ever again assign commissions anywhere. If that's the only way to do business with someone, we won't be doing business at all.
I learned my lesson with the worst of the worst, P and A. I will never, ever again assign commissions anywhere. If that's the only way to do business with someone, we won't be doing business at all.
MrProducer
Super Genius
- 240
Frank is a friggin genius. It's like listening to Noah prophesy about the insurance business. No offense, Frank....You're not quite as old as Noah!
