Rollups and Overrides

[DonP]

As I correctly pointed out what Bill said . All overrides cease . And that’s very good . The fmo and agent both have “skin “ in the game . And that skin is integrity at the highest level for many agents .

 

[Newby]

So you are working for free on that situation.

Life insurance and Medigap require a license, but MAPD requires a license and certification. I wonder if MAPD rolls up to the FMO or, as some agents have alleged, comissions and overrides cease and are charged back?

Not free. I continue as the upline manager same as always. I get paid. You would not believe how many people call in through the years from orphan accounts wanting to add coverage or with referrals. It really drives the point that agents should work their own book more than most do.

 

[WinoBlues]

You would not believe how many people call in through the years from orphan accounts wanting to add coverage or with referrals. It really drives the point that agents should work their own book more than most do.

 

[somarco]

There are two scenarios in how this works for MA/PDP:

• 90% of Carriers - Examples would be UnitedHealthcare, Aetna, Humana - when the agent's license lapses, or does not complete annual certification, commissions cease to be paid to all levels of the hierarchy. Agent doesn't receive commissions, nor do any levels of hierarchy (GA, MGA, etc) that exist between the Agent and the FMO. No one gets paid, and you cannot "reassign" the policy to another Agent.
• 10% of Carriers - Example would be smaller local carrier like state specific BCBS plans - The carrier reaches out to us and ask to whom we want the business reassigned in terms of Agent of Record (AOR). If the Agent was direct to N&F, we will assign the business to our Agency and service the policyholder. If the Agent was contracted through a downline Agency, we will reassign it to them and they will have to service the policyholder. This only happens after repeated attempts to get the Agent to complete certification or get their license reinstated. There are many times we make these outreaches and the Agent asks us to stop calling them, even though we explain they will lose their renewal commissions on the business in force.

That is why our team at N&F - and I would assume at other FMO offices - work so hard at offering resources, reminders, etc to Agents about completing annual recertification for Medicare Advantage.

Thanks for the detailed explanation.

It has been my experience for U65 health insurance that when a contract was terminated by the upline (due to lack of production), the policyholders became a house account and the agency stopped paying renewal commissions.

Apparently MA is different.

 

[maalox]

Are you an FMO?

Yes or IMO, NMO,BGA, or any number of 3 letter initials you care to make up, but yes I hold the highest level contract with every carrier we represent.