Over-Rides

[MOHEALTH]

This may seem like an elemnentary question but here goes...

Can anyone explain to me what overrides are? How they are calculated? Who is eligible to receive them? And bascially any information you might have. Thanks.

Oh..and if the only thing you have to provide is a smart a** response...SAVE IT!!!

 

[Crabcake Johnny]

Very simple - you're a general agent and placed at a higher commission level -say 25% for health. If you hire an agent and give them 15% you made 10% - if you give 20% you make 5%.

There are production requirements that go along with being a general agent and if your agent is charged back commission your override is also charged back.

Some carriers allow general agent contracts - some don't. The most popular GAs deals are through:

Assurant: Write $100K and you're at 25% - can hire agents

Golden Rule: Key Broker contact requires 50 deals written through any carrier during the past year - then a commitment for 100 apps per year.

World: Depends on the IMO but typically you get a 25% or 30% contract by writing between $100,000 to $250,000. GA status really does depend on the IMO.

Aetna: They will allow general agents however production requirements are extremely high - $100,000 per month in promised business however that was the last time I checked well over a year ago. Maybe someone can update that.

 

[Guest]

Good answer John.

To add on from a different angle, one other aspect of an over ride is a percentage given to a sales manager as incentive.

As in, the sales manager might have a salary and an over ride based on sales of all agents under their supervision.

Still another possibility is that if an agent brings other agents into the mix at an agency. That recruiting agent might get an over ride on the agents business.

As in: I tell three of my agent friends they should work at ABC agency with me, they all take the job and I then get a 2% over ride of whatever they sell.

I've seen both examples in action and they both have to be structured properly to work well.