I was offered a job as a producer - independent contractor so I'd be responsible for all costs. The worst part was when the guy told me about the great deal. A whopping 35% on new and renewals? I should have laughed but I was polite.
I have a commission only producer who in the last few months has had several policies cancel. In fact 3 people paid the down payments and then never paid a cent after that and they cancelled. I have explained to them charge backs as well as having to pay a $11-15 MVR/Clue report fees with some of our carriers when this happens. My producer's response was "oh that's a shame."
I don't want to keep losing money on this. However I have never done chargebacks with the producer, I always eat the loss.
When i was an independent contractor for someone else's agency, i got a set percentage of commission - including chargebacks. Go ahead and make that regular practice. If it hurts their income enough, they will either write better business or work harder to replace their losses.
