Setting LTC Commission Rates as Independent


New Member
In 2001 I was a captive agent for (then) GE-Financial with them supplying qualified leads for free. I did pretty good as a newbie but then came the 9/11 tragedy and all leads starting in 2002 went to their top producers.

I was forced to cut my losses and do something that gave me an income stream.

Now, in 2008, I have been approached by a Financial Planner (FP) I know who is wanting to expand his customer offerings to include Genworth LTC. His parent Financial Planning organization would sponsor me to get my license. I would work with the local FP as an Independent Agent--splitting the commissions (he provides the leads and an office room; I do the actual applications).

I have been reviewing many of the forum threads but still have some basic questions as I begin negotiations with the FP.

1. As an independent agent (broker), what commissions can I be looking at for writing LTC applications? I remember that as a captive GE agent I was given 25% and then 4% for renewals. That was in 2001.

2. In the LTC world, are commisions based on the actual amount of the 1st premium submitted per application--whether monthly, quarterly or annual?

3. Will Genworth dictate what the commissions will be to me as a broker?

4. Do I contract directly with Genworth or would my sponsoring org. be doing that?

Thanks, in advance, for answers and thoughts on the above. And, yes, I do realize I have a huge re-learning curve to surmount as I have been out of the ins. business for about 6 years.
The state is South Carolina, but my questions are more general than specific. I am trying to get a handle on the 'process' of being a broker rather than specific commission rates, at this point.

That is to say, once I understand the relationships among me, the broker, the role of the sponsoring org., the role of the insurance product provider (Genworth in this case) I can then get specific on rates.

Hope this helps in answering my quetions.

If you are going to be splitting the commissions with the FP I would think he or the sponsoring organization could answer some if not all of these questions. I have looked at Genworth in the past as a captive opportunity but don't know what they pay independent agents.
Thanks, getting info from the sponsoring org. seems to be the logical approach. My original questions were intended to give me some background/leverage (?) info before I went to the sponsoring org. with these questions.

BTW, does anyone know what Genworth commission rates (in SC) are for writing an LTC application as an independent agent, not a captive agent?