Reasonable Producer Compensation for Life

[TwiLight]

An Agent is capped at 55% FYC in NY with a 5% override or a max of 60% FYC.

What makes comp higher is if the GA agrees to split the Expense Reimbursement Allowance paid by the company to the GA..... Max of 39%. Depends on the company, but Total FYC with ERA cannot be more than 100% FY. Where the comp in NY is in the renewals which can be very high in years 2-5 to the GA.

That is what makes NY business a local thing...

Skipper

 

[Tothetop]

Companies pay anywhere between 45-55% FYC. The difference is the ERA. Two GA's for the same company can choose different amounts ERA they want to give you. Those who give less justify it with the "we're giving you back office support line." There are many GA's who give great support with top contracts. Top contract in NY (FYC + ERA) is 91% for all agents across the board. Get a comp. schedule if you can. Some GA's will give you a schedule like this : 0-$10,000 FYC = 20% ERA, $10,000-$30,000 FYC =30% ERA, etc.

 

[L5tc]

New York is so much different. It is what it is I 'm glad for all the information you guys sent me. Yeh I mean Am General had pulled out for awhile, Genworth doesn't sell life - no great loss. There's been some bad stuff in terms of the reserves cut backs outside of NY and I don't know if everyone is aware of how the insurance companies are setting up their own re insurance companies which I'm not happy about. So yeh we don't get all the new products but I'm glad NY is tough with the insurers. Rather on that side.

Businesses have to be in NY. We will
somehow make it without Rush Limbuger. Hehe.