Assigning Commisions

[jmatos]

I have a heard a lot of mention about this on the forum, but I haven't really got a good definition of what everyone calls an assignment of commissions. BTW, I haven't had a contract where I have agreed to do such, except for one, and I don't intend to place much with them anyway. Even in that one contract the wording was hard to understand, in my opinion.

So do you sign those contracts or not? If you do or dont sign them I am interested in knowing why or why not.

 

[b61mack]

Sometimes you have to. But as you say don't write to much with that company.

 

[Todd King]

When you assign your commissions the insurance company doesn't send the money to you, it goes to your upline and then your upline is responsible for paying you and also paying you renewals. You have to be careful about the renwal part as sometimes you're actually agreeing to "no renewals".

For the most part...you NEVER want to assign commissions.

Your upline COULD decide not to pay you...and guess what? They can find reasons not to!

 

[The Rabbi]

I would never assign commissions. If you do, then it's like having a job and your clients belong to them. Always be paid direct by the company - why trust an agency to pay you. What if the agency sold their business and the new owners are part of the Evil Empire and decide not to pay you. Why be tied to an agency. In fact, the best idea is to get a release when you sign up through an agency if you want to keep them honest. You might find a better agency to help you as you get more experience.