100+ Post Club
What is standard commission split for referred health biz?

I sell commercial insurance (captive) and company does not write its own health. We do have an agency to go through but its a bloody nightmare.

Have interviewed local agents and found a person very comfortable to give health leads to.

He would like to go 50/50 and half ownership. This of course will be in writing.

Sounds fair enuff as he is doing the brunt of the work. Figure its a start as not ready to go full indy health, doing well on the commercial side.
We didn't discuss that but I'd be fine/prefer being paid as earned.

Would avoid the charge back issue all together.

Being captive I can not be appointed with other companies so this seems like best route for now.
I don't know which carrier you represent, but a few years back I talked with some local State Farm agents about a split arrangement. The few that were interested wanted to make me more of a captive in order to meet their life quota. The only health carrier I could use was Time (then known as Fortis).

He would not consider a commission split, but rather would pay me a salary with a bonus based on life & health commissions. The salary was decent and I was looking to test the water since I was still undecided about re-entering the insurance business after a 5 year break. I decided to ask about the life commissions. He proudly told me he earned 40% on life sales.

I almost laughed out loud.

I do know other agents who have partnered with P&C agents successfully on a 50/50 split but these are all independent agents, not captive. It can work well but can also be a challenge.

You definitely want to have all outside arrangements set up on as as earned basis, which may limit your ability to find a life & health agent. Too many are married to the commission advance.

Good luck.