Assigned Commissions and Advances
- Thread starter jch1965
- Start date
I wouldn't assign commissions to anyone. When you do this, you are letting them receive your commissions and then they pay you. A recipe for disaster in my opinion.
The advances are a different issue. Some company's will advance you 6, 9, 12 months of commissions. This is ok if you write good business. A disaster if you write not so good business.
The advances are a different issue. Some company's will advance you 6, 9, 12 months of commissions. This is ok if you write good business. A disaster if you write not so good business.
- 1,118
If an insurance company doesn't offer direct advances, an IMO might offer them out of their own pocket. If that's the case, the IMO is paying you an advance out of their money and your commissions are going to the IMO to pay back the loan they've given you in the form of an advance.
This is the only time it's ever acceptable to assign commissions, and even then you should go as-earned if you can.
This is the only time it's ever acceptable to assign commissions, and even then you should go as-earned if you can.
Here is a fun fact to know when it comes to IMO/FMO situations. A friend who placed biz with Imerica (no comment) found out her upline FMO is calling her clients trying to get them to switch to another carrier.
For those who have been under a rock, Imerica is in receivership.
I had something similar happen a few years ago when CGI decided to leave the major med business and sold to World/AR. My upline FMO decided to call the few people I had left with them and try to roll them over to another carrier.
I have absolutely no use for FMO/IMO offers. Been burned too many times.
For those who have been under a rock, Imerica is in receivership.
I had something similar happen a few years ago when CGI decided to leave the major med business and sold to World/AR. My upline FMO decided to call the few people I had left with them and try to roll them over to another carrier.
I have absolutely no use for FMO/IMO offers. Been burned too many times.
- 9,744
Simple. It's because down the road they want to be able to screw you out of your comp.
- 198
"Seriously, one positive (of many) is that the right MGA can pay you based on statements received before they have the actual commissions from the carrier, it's called an assignment. This is so you, the agent can have money to pay bills, buy leads, etc sooner than later. And you don't give up your clients in the process, it's a great asset to have."
"Of course they have to have a substantial cash flow so not every MGA can do this."
"If you want the best, why do you settle for less?"
Rob Liano
Sales Mentor & Success Coach
1.888.379.8315
"Of course they have to have a substantial cash flow so not every MGA can do this."
"If you want the best, why do you settle for less?"
Rob Liano
Sales Mentor & Success Coach
1.888.379.8315
wealthcreator2010
New Member
- 8
Advances are good for cash flow to invest into your busness for narketing, better have a solid customers base and customers stay withyou, then advances are good. Right now with economy in the worst shape since the great depression and insurance companies having a higher payout in claims, everyone needs to sell alot more policies monthly. The big carriers will be annoucing their new commission rates for 2011 soon! Anyone heard anything about new reduced commissions. Cigna will annouce on the 3rd new comissions. Any big carriers giving advances/
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Bad news for some people selling health insurance. About 50% of everyone selling health insurance in the past are not around anymore or will be gone. Survivors will benefit from less competition, but always remember diversification of your product line is diversifying investment portfolio. You will be around longer!
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Bad news for some people selling health insurance. About 50% of everyone selling health insurance in the past are not around anymore or will be gone. Survivors will benefit from less competition, but always remember diversification of your product line is diversifying investment portfolio. You will be around longer!
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- 7,066
When it comes to Med Supps there is no logical reason to assign commissions. Every carrier I have ever represented with advance an agent the first twelve months of commissions.
Agents who assign their Med Supp commissions are going to get screwed. They will not be the agent of record, will not own the business and most likely get only a portion of the renewals due to them.
If they leave the agency they walk away with zero income for their efforts. There are no "promises" anyone could make that would cause me to consider assigning my commissions. This especially includes promises of "leads".
Agents who assign their Med Supp commissions are going to get screwed. They will not be the agent of record, will not own the business and most likely get only a portion of the renewals due to them.
If they leave the agency they walk away with zero income for their efforts. There are no "promises" anyone could make that would cause me to consider assigning my commissions. This especially includes promises of "leads".
Does an agent have to have an FMO or is it only for those agents that don't currently have enough volumn to get direct appointments? What role does an FMO play other than helping you get appointments with carriers?
- 7,066
Volume is only necessary to get the top contracts a company offers, not to simply get above street level commission contracts. Agents can get a point or two above street without having to meet production requirements from some FMO's, not very many though.
Going direct with a company will typically only get an agent a street level commission contract. Going through some FMO's can automatically get you an above street level contract. Also, if you go with an FMO that actually sells the products you are contracting for that FMO will be able to give an agent help in selling policies, not just simply product knowledge. Again, not very many FMO's are producing agents.
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