Insurance Agent Forum

[Frank Stastny]

United of Omaha has increased commissions on Plans M & N. I had heard that this was coming but this if the first time I have seen it in black and white.

It appears that the increases are between 1.5% and as high as 4.5% depending on the state.

In some states Plans M & N are the same percent of increase, in other states Plan N is taking a higher percent of increase in commissions than Plan M is.

[G.Gordon]

I was wondering because the commission schedule they sent out last week didn't have the commission rates for UM30 or UM31... M and N.

[moonlightandmargaritas]

Originally Posted by Frank Stastny

It appears that the increases are between 1.5% and as high as 4.5% depending on the state.

Is this to partially compensate for the lower premiums?

[Frank Stastny]

Originally Posted by moonlightandmargaritas

Is this to partially compensate for the lower premiums?

That is exactly why they have increased the commissions.

When I first heard that may happen I was very skeptical, I have never known an insurance company to increase an agents commissions. I have seen decreases though.

Can you tell that I'm ing.

[sman]

Just got my commission schedule and it shows 1.5% increase for M and 3.0% increase for N here in Georgia and a few other states.
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In some instances this may actually mean more commissions. Take MO for example. The rates that Frank posted show about $135 for Plan F and $110 for Plan N (approximate - just trying to remember off the top of my head). Since Plan F has a reduction in commissionable premium due to the Part B deductible, the commission for Plan N would actually be higher (assuming of course there won't be any reduction in commissionable premium).

Originally Posted by moonlightandmargaritas

Is this to partially compensate for the lower premiums?

[G.Gordon]

Originally Posted by Frank Stastny

That is exactly why they have increased the commissions.

When I first heard that may happen I was very skeptical, I have never known an insurance company to increase an agents commissions. I have seen decreases though.

Can you tell that I'm ing.

Back in the day (mid 1990's) when MSA's first came out (the grandfather to the current HSA) companies couldn't figure out why agents weren't selling more of them. I was selling five MSA's to every one co-pay plan even though I was getting the same commish for half the premium. I was called by the VP of American Republic in a conference all with Ed Swaringim out of Springfield. He was my direct upline. They wanted to know what training I had etc. and why I sold them at the rate of 300-400% more than any other agent with American Republic. For me it made sense for the client and I made it clear that making half the money was not a good thing, but I like to do what is right for the client so I had no idea how they could make other agents sell the MSA plans over the co-pay plans and make half the money so I suggested they raise the commissions to make up the difference.

Guess what happened the next month in the newsletter. Commissions on the MSA plans went from 20% to 32% with bonuses for selling certain amounts of MSA plans in a month, quarter, and year. MSA sales went through the roof. It was an easy sale when the co-pay plan was $300-400/mo, but the MSA plan was $130-150/mo. Raising the commissions didn't make up all the lost income, but it sure made it easier for the agent to take the extra time to educate the client and save them money.

I still make a killing on all those policies I sold when I lived in Arkansas... I've been gone for going on 5.5 years. Gotta love this business.

[Yoda]

Originally Posted by Frank Stastny

That is exactly why they have increased the commissions.

Ive been with Mutual Of Omaha long enough to know for a fact they dont care the slightest bit about the agents making less on new plans they put out. They are obviously encouraging the agents to sell those "N" plans for some reason I just have not figured out what it is yet.

[G.Gordon]

Originally Posted by Yoda

Ive been with Mutual Of Omaha long enough to know for a fact they dont care the slightest bit about the agents making less on new plans they put out. They are obviously encouraging the agents to sell those "N" plans for some reason I just have not figured out what it is yet.

We wouldn't expect you to.

Poor fella... musta got abused something terrible in the back of that short bus.

[Yoda]

Originally Posted by G.Gordon

Poor fella... musta got abused something terrible in the back of that short bus.

Us guys who with a little metal never rode the bus son......we walked or rode our bikes and we liked it that way.

[MedSuppPro]

Originally Posted by Yoda

... and we liked it that way.

Wish I could say I liked it. I had to fight to get into school and fight to get home. No, I did not like that...

[maleman2045]

Originally Posted by Yoda

Us guys who with a little metal never rode the bus son......we walked or rode our bikes and we liked it that way.

A little metal plate in your head????
Explains quite a bit...

[G.Gordon]

Originally Posted by maleman2045

A little metal plate in your head????
Explains quite a bit...

Thanks for saving me the time.