When the Premium Rises on a Med Supp Policy

[Chicken Coop]

in the first 6 years, does the producer's level commission percentage include the premium increase, or is the level commission always based on the original premium?

 

[joe92275]

Issued premium is considered commissionable premium for life of policy

 

[ecotainer]

Unless you're in the state of Washington. There, commissions will include rate increases. Otherwise, I agree, commissions are based on the issued premium only.

 

[Glen Shelton]

Unless you're in the state of Washington. There, commissions will include rate increases. Otherwise, I agree, commissions are based on the issued premium only.

I spoke with an agent licensed in WA not too long ago and he was completely oblivious to the terrible comp on Med Supps he was receiving by only selling in WA.

[Public Service Announcement]

Commission % in the state of WA is 2 - 3 times LESS than you can receive when selling in other states.

 

[goillini52]

I remember United American started paying renewals on the increases on Med Supp premiums on newly issued business. They must've realized how much that was going to cost them and they stopped that program after about a year. That was in the early 90's.

 

[GreenSky]

Several carriers in CA pay on the increased premium. Years 2 to forever are 50% of 1st year however.

Rick

 

[Tkruger]

Several carriers in CA pay on the increased premium. Years 2 to forever are 50% of 1st year however.

Rick

Love the riddles...and I only LOVE my wife, Kids, pets, and parents. Not necessarily in that order

 

[GreenSky]

Love the riddles...and I only LOVE my wife, Kids, pets, and parents. Not necessarily in that order

I could spell out the carriers but why would it matter. If you sell in CA you already know the 2 companies that pay commissions similar to what health commissions used to be.

Are you that interested?

Rick

 

[cedwards]

I spoke with an agent licensed in WA not too long ago and he was completely oblivious to the terrible comp on Med Supps he was receiving by only selling in WA.

[Public Service Announcement]

Commission % in the state of WA is 2 - 3 times LESS than you can receive when selling in other states.

But the premiums are 2-3 times more in WA than in most states also. Not to mention a client can change their Medsup any day of the week without going through underwriting and the agent gets paid "full comp".

 

[jacobtn]

But the premiums are 2-3 times more in WA than in most states also. Not to mention a client can change their Medsup any day of the week without going through underwriting and the agent gets paid "full comp".

Good to know Chad.