Flat Extra Commissions

[WinoBlues]

There we go with that if word again.

And if my aunt had balls she'd be my uncle.

Perhaps you are the most upstanding guy in the room, but questions like that lead people to be suspicious.

Here's what I know about underwriting a case when it comes to flat extras--there's a huge amount of variance from one company to the next. When a case goes down this road, you aren't comparing things as trivial as commission rates anymore, you are having serious conversations with underwriting departments trying to get the best/least wallet frightening decision.

True.
Just placed a case I started in July. Guy I have written for close to 20 years. 1 million $s on a male age 60. by mail. Cool! Pre qualed and Quoted with Pru at Pre'rd ooops! Std tbl2. 100+ % markup. No problem, I will convert the ONL term. and dial down the UL, Oh Crap! I did not do the "plus"

6 months later, Principal National at Std and almost 30 points less. And thankful for that.

BTW...""And if my aunt had balls she'd be my uncle."" Fn funny.....

 

[wibroker]

Not company pays on "temporary flat extras" - for example $5/$1000 for 2 years. However, if you have a "permanent" flat extra (such as a rating for a hazardous hobby,etc.) you should get paid on the entire premium. It's pretty rare that you encounter that. If its for a medical reason you're most likely not gonna get paid.

 

[bill3173]

Here's what I know about underwriting a case when it comes to flat extras--there's a huge amount of variance from one company to the next. When a case goes down this road, you aren't comparing things as trivial as commission rates anymore, you are having serious conversations with underwriting departments trying to get the best/least wallet frightening decision.

Spoken like someone who's done it. It becomes the largest folder on your desk rather quickly. I had a guy that started with a $12.5K flat xtra($12.5/$1K on $1M) 6 yrs, we moved to another carrier that gave him $10K flat xtra for 5 yrs. At year 3 we got the flat xtra removed by re-submitting through uw.

They removed the flat xtra and rated the case. I didn't advise him to take it, if he could wait out the flat xtra, but he significantly reduced the face amount and took it rated, but nobody was happy in the end.

I have other stories of mammoth flat xtra's but I'll save them for another time. They always end up with the rich man paying way more than he expected and the agent getting enough money to buy nabs and a soft drink.

 

[WinoBlues]

.... It becomes the largest folder on your desk rather quickly. ......... They always end up with the rich man paying way more than he expected and the agent getting enough money to buy nabs and a soft drink.

True That!