Chargebacks Expected from a Producer??

[Josh]

Example: We sell an HO policy....we get paid Commish....3 wks later underwriting comes back and says.."Hey, we just noticed the porch is attached to that dblwide, we cant continue the policy"(something the agent didn't notice when taking pics)....Then the agent wants the commish she paid me, back.

That's normal. If you find it overly concerning you could ask to only be paid after it clears. There is nothing dishonest about our, but I can see how you'd think that.

 

[Tahoe Ray]

In a way he did. He earns money from me by reminding me of all the money I borrowed from him over the years. Boy does he have a good memory.

You might end up paying him back more than you think...

http://www.theindianalawyer.com/fil...s-about-duty-to-support-/PARAMS/article/29043

 

[best14rates]

Are agents are paid on commission only that is what they chose or they can get paid hourly but they have all chosen commission only they are not paid on the policy till the following month also if they had the policy reject example that you gave with the porch issue then the agent had not inspected it well enough or didn't understand the carriers guidelines on what is acceptable so they took the risk of writing it knowing that it might get rejected then they should expect a chargeback. Seems to me that they should understand charge back if that happens. I would think they would be making sure what they write is not going to be rejected before they asked to get paid. Our agents are happy and have not had any issues with charge backs that includes charge backs if the policy cancels mid term for non pay or any reason at all. Unless I am misunderstanding why would anyone expect to get paid on something that was not written or rejected.

 

[HoosierLife]

Are agents are paid on commission only that is what they chose or they can get paid hourly but they have all chosen commission only they are not paid on the policy till the following month also if they had the policy reject example that you gave with the porch issue then the agent had not inspected it well enough or didn't understand the carriers guidelines on what is acceptable so they took the risk of writing it knowing that it might get rejected then they should expect a chargeback. Seems to me that they should understand charge back if that happens. I would think they would be making sure what they write is not going to be rejected before they asked to get paid. Our agents are happy and have not had any issues with charge backs that includes charge backs if the policy cancels mid term for non pay or any reason at all. Unless I am misunderstanding why would anyone expect to get paid on something that was not written or rejected.

What?????????????????????????????

 

[donamese]

Wait until you get a rescission on a life policy. Two years of contestability...so you make $5,000 in commission in January 2011, client dies November of 2012 and policy is rescinded. You had no idea the client had lied on the app. Does the company eat the $5,000? No, they will charge it back 22 months after they paid it. Does it suck for the agent? Yep. Is it just a part of the business? Yep. This is why agents with advances especially need to budget and expect some fall out because it will occur. Carriers have to charge back for these, if not, agents may as well tell everyone to lie on the app because there is no recourse.