Hi. I recently got life licensed and hooked up with an IMO that is contracted with North American for IUL/annuities. I have a temporary agent number with North American and once I bring them a deal (within the first six months) they will finalize a contract with me. I have a feeling that the IMO offered IUL commissions are pretty low. Their commission schedule for IUL's is 40% to 45% depending on the specific product. Is anyone else doing business with North American that would be willing to share their commission schedule with me, or give me an idea of what it should be? I want to bring my business where I will be fairly compensated and not find out after the fact that I've been screwed. Thank you in advance... Also, this particular IMO's training is pretty bad other than they are willing to hop on the phone and help close deals as needed (for no commission reduction) to help us learn.
North American IUL Commissions
- Thread starter jaguars25
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- commission split iul
North American doesn't even have a schedule that low that I can see. Is this a commission schedule from the carrier or did the IMO make up their own?
What's the code on the commission schedule? The lowest I see is WA50. WA90 is the highest writing agent commission schedule (there are higher GA and distributor schedules) but that would be 90% on option A for Builder IUL products.
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It's from NA and it's WA40.... so I guess that means we're getting a custom screw job. What should I do from here?
I'm just looking at my grid from 2022 so maybe they added levels below 50?
I don't know what you should do but I wouldn't write North American for IUL lol.
What is your annuity schedule code (if you only contracted with them for annuities, they may have set you up with both and just put you at the lowest level for life).?
If you feel like you're being screwed, have a discussion with your IMO. Maybe it was a mistake.
If not, you can terminate your JIT contracting w/ NA. If you want to set up with another IMO, your current one may restrict you from contracting with someone else for up to 6 months (so you should terminate asap to start the clock). Another IMO can't always give you a higher schedule even if they release during that time (with many carriers) so you may want to avoid writing them at all.
There are a ton of carriers. Not having access to one (or even 5-10) shouldn't stop you from writing business.
NA is a great carrier but there are a lot of great carriers. Unless it's a mistake by your IMO or can be explained easily, just chalk it up as learning, move on, and find other companies to write.
I would still give them the benefit of the doubt that it was an error but if not (or if you feel they were trying to pull a fast one), bail.
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You've been very helpful @Tahoe Ray ! The annuity schedule code is "Producer 50 schedule", which I am assuming is extra low also. The low commissions for IUL were not a mistake unfortunately. They recently RAISED them to this new WA40 level from even lower and made a big deal out of it! How do I go about terminating my contract with NA? Do I contact the carrier or the IMO? Thank you!
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- #6
I guess I should add that maybe the commissions are this low because they initially were just having us refer business and they would handle everything else, from presentations to running illustrations, writing apps, etc. Now that they "raised the commissions" to 40-45%, they still want to handle creating the illustrations, and want us to handle the presentations if we are able, but are willing to let us schedule with them to allow them to do it too. So, it's probably like a 50/50 commission split because they are/were doing most of the work. I'm fine to work like that initially if I know what I can work up to "full commission" once I am trained and on my own.
Yeah, you should have mentioned that part.
It's easier if you get put at full comp and then they go on the app for 60-80% (50/50 is a great deal if you're just sending a referral - IULs are complex and require constant follow-up far beyond the initial year) but different shops do things different ways.
newbie2001
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