Life Company That Allows Rebating in California

[Thatguy]

In the great state of California, rebating of part of your insurance commission is perfectly legal with full disclosure. That being said, most companies don't let you do it, even if it is legal. The companies have the right to make their policies more restrictive than the state law. So that being said, does anyone know of Life Companies that allow legalized rebating in the state of CA?

 

[Death Cab For Tootie]

I'm pretty naive about this, but what kind of senario (outside large groups) would you need to/want to rebate commissions?

 

[jacobtn]

I'm pretty naive about this, but what kind of senario (outside large groups) would you need to/want to rebate commissions?

Uh, to offer a better rate than the other guy.
I wish we had that option here in TN. Hey, if it's legal, I would like to have that in my back pocket too. Why not?

 

[DHK]

You're an ***.

Does the premium change in the 2nd year on the policies you're selling?

You're setting yourself up for a fall, and burning the bridge for that person to work with a REAL insurance professional in the future.

Be smart. Don't start.

Just because you "can" doesn't mean you should.

 

[jacobtn]

You're an ***.

Does the premium change in the 2nd year on the policies you're selling?

You're setting yourself up for a fall, and burning the bridge for that person to work with a REAL insurance professional in the future.

Be smart. Don't start.

Just because you "can" doesn't mean you should.

Uh, YOU'RE the ***. On most term life, there is no renewal, or minimal at best. "A bird in the hand is worth two in the bush". In this case, the two in the bush is not even worth worrying about.

As long as the client understands the renewal premium, and its LEGAL in CA, than to lose the sale when he could have rebated off the top is ludicrous.

 

[DHK]

What kind of term are you peddling?

My YRT is non-commissionable, so I don't sell it. Otherwise I have 10 & 20 year term.

Tell me, what is the premium on a 10 year term for the 2nd year? It's the SAME as in the 1st year!

You are also sewing the seeds of a bad career and a career that is not very profitable either.

I wouldn't do it if I were you.

You obviously don't think very highly of the work you do.

Do doctors share their income with you?
Do attorneys split their fees with you?
Do investment advisors share their commissions with you?
How about real estate agents?

Why are you treating this profession any differently???
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Uh, YOU'RE the ***. On most term life, there is no renewal, or minimal at best. "A bird in the hand is worth two in the bush". In this case, the two in the bush is not even worth worrying about.

As long as the client understands the renewal premium, and its LEGAL in CA, than to lose the sale when he could have rebated off the top is ludicrous.

I wasn't talking about your renewal commissions. I was talking about the annual premiums.
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One of the most important aspects of insurance sales is TRAINING the client to pay the premiums on an ongoing basis.

If I share my commission (for whatever reason) what does that say about what I think about the client paying their own way for their own plan?

 

[Thatguy]

You obviously don't think very highly of the work you do.

Do doctors share their income with you?
- A doctorate degree takes 4 years of med school + residency and hundreds of thousands of bills. I'd be a little high on myself to compare myself to a medical doctor.
Do attorneys split their fees with you?
- One of the largest attorney network in the United States: Pre Paid Legal. Whether or not you use their service, they are one of the largest network of attorney in the U.S, and they DO share their money with you.
Do investment advisors share their commissions with you?
- Yes, as the matter fact some do.
How about real estate agents?
- Unlike insurance agents, RE agents have had full right to rebate their commission for years! The LARGEST ranked e-based RE company in the US is Zip Realty, Homes for Sale, MLS Listings Search, Real Estate Agents -- Zip Realty and they do EXACTLY that - they rebate part of the agent's commission to the client.

Why are you treating this profession any differently???
I'm not, I'm doing exactly what the other professions do.

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Now let me clarify as to WHY I rebate.

My client's face value are usually 5Million to 50Million. The ALP on a 5M policy annualized is usually about 330K to 370K on a Guarantee UL policy. I rebate my clients the cost of the TPF, ILIT, and Trustee setup (usually about 6-8K). I think that's a great added benefit, and fair trade to give to my clients. If they are paying 350K for a policy, the least I can do is pay for the services they used to get the policy.

Now back to my original question; does anyone know of any other companies that allow rebating other than those previously stated?

 

[bluemarlin08]

I would never go down that path, why don't you call the carriers you use the most and ask them rather than ask a internet forum?

 

[Franz Kafka]

In the great state of California, rebating of part of your insurance commission is perfectly legal with full disclosure. That being said, most companies don't let you do it, even if it is legal. The companies have the right to make their policies more restrictive than the state law. So that being said, does anyone know of Life Companies that allow legalized rebating in the state of CA? I already know Protective, Nationwide, and AIG does. Anyone else?

I think the only unwritten rule is NOT to advertise. Carriers don't really care - it's the agents in other states that balk so the carriers have to make some gestures. I believe the commissioner does not allow carriers to terminate agents based on rebating practice. If you're just offering legal fees out of your own pocket and keep it between yourself and the client, I don't see any problem coming from any carrier. I'm also in CA and believe that it goes on among larger cases. If I were you, I wouldn't call the carriers and ask "you guys allow rebate on this 300k premium case?" I'd just keep it qu-i-et.

 

[Marpol]

Florida requires that you tell the carrier that you are rebating and that it must be consistent within a group of clients...ie. everyone you sell a Prudential UL to.

In CA. Prop.103 repealed CA rebating law. It is my understanding that rebating in CA has nothing to do with the carrier. The agent gets paid by the carrier and if they agent want to rebate some or all of the comp to the client they can. In CA you do not have to tell the carrier you are rebating like in Florida.