Best Way and Company for Money Order Client.

[VolAgent]

No AML violation.. You aren't hiding the money.. Their name goes on then money order as the remitter.

I have a brilliant idea.. must have been hit in the head with a hammer.. .. Why not call the company and tell them you are collecting the first months premium in cash for a direct bill application and ask how they want you to remit the money?

I wasn't sure on that. But I am still pretty sure it isn't allowed or at least frowned upon in most states and by most companies. I do recall some companies expressly forbid it.

 

[rousemark]

I wasn't sure on that. But I am still pretty sure it isn't allowed or at least frowned upon in most states and by most companies. I do recall some companies expressly forbid it.

Yeah.. Every company has their own procedure.. That is the reason I suggest the OP call the company and ask them.

I have sent MOs to Settlers both for initial premiums and for renewal premiums with no problem but that was some time ago.

Columbian has you set up a checking account for premium collections on what they call their MDO business. You send them a report each month of what you collected and they draft the checking account for the amount due them and leave your commission in the account.

Of course, I date back to the good old days when you collected cash or checks payable to the company. You had an authorization from the company to endorse their checks and deposit them in your checking account. You then withheld your commission on the initial premium and send the company the net. On a 100% life contract you didn't send anything to the company except the app.. On a 60% Medicare Supplement contract you would send 40% of what you collected with the app to the company. The net companies didn't advance so we wrote about 80%+ of our business on an annual premium basis. Agents could still write a lot on annual premium instead of monthly if they would just ask for it.

 

[jdeasy]

A few months ago I sold a settlers single premium. $5800 and the guy gave me cash.

I went straight to the bank and got a cashier's check made out to Settlers. On the application I wrote that the applicant gave me cash and I bought the cashier's check with it.

The company never said a word about it. I'm sure if they had a problem with it they would have.

 

[Gooner]

A few months ago I sold a settlers single premium. $5800 and the guy gave me cash. I went straight to the bank and got a cashier's check made out to Settlers. On the application I wrote that the applicant gave me cash and I bought the cashier's check with it. The company never said a word about it. I'm sure if they had a problem with it they would have.

Funny thing...I texted him the same thing.

 

[lgreen]

I have only done 2 for Settlers but I accepted cash and just wrote a check for it out of my business account. They never said a word.

 

[HoosierLife]

Well I just had the guy sign it to be safe.

 

[Norwayguy]

No AML violation.. You aren't hiding the money.. Their name goes on then money order as the remitter.

I have a brilliant idea.. must have been hit in the head with a hammer.. .. Why not call the company and tell them you are collecting the first months premium in cash for a direct bill application and ask how they want you to remit the money?

Most of my companies prohibit collecting cash.

 

[rousemark]

Most of my companies prohibit collecting cash.

But those companies also do not do monthly direct bill. For a company that says you can submt monthly direct bill and then turn around and say you can't collect cash would be defeating the purpose of monthly direct bill.

 

[Norwayguy]

But those companies also do not do monthly direct bill. For a company that says you can submt monthly direct bill and then turn around and say you can't collect cash would be defeating the purpose of monthly direct bill.

Not really nothing is stopping the client from getting the money order.

 

[rousemark]

Not really nothing is stopping the client from getting the money order.

Yes there is.. themselves.. It is matter of getting them to do it for the initial premium.. Most will buy a money order and mail in renewal premiums but taking an app and then depending them to go get a money order and either mail it to you or you have make another trip back to pick it up is an exercise in futility. You will not have a very good closing percentage in those situations.