What happens to an agent’s renewals when he dies ?

[noah]

I know Moo has a place listed on their contract where you can fill out beneficiary.
What do other companies do ? How do they handle it ?
I have called the contracting department of other companies and asked this question,explained in detail what I was looking for and they could not answer me. Even after being placed on hold for a long time I was told that was a form that could be downloaded on the agent website under policy holder services. Lol !
What’s the best way to get this taken care of ?

 

[rousemark]

I know Moo has a place listed on their contract where you can fill out beneficiary.
What do other companies do ? How do they handle it ?
I have called the contracting department of other companies and asked this question,explained in detail what I was looking for and they could not answer me. Even after being placed on hold for a long time I was told that was a form that could be downloaded on the agent website under policy holder services. Lol !
What’s the best way to get this taken care of ?

Get your contracts out and read the vesting clauses.

 

[goillini52]

I know Moo has a place listed on their contract where you can fill out beneficiary.
What do other companies do ? How do they handle it ?
I have called the contracting department of other companies and asked this question,explained in detail what I was looking for and they could not answer me. Even after being placed on hold for a long time I was told that was a form that could be downloaded on the agent website under policy holder services. Lol !
What’s the best way to get this taken care of ?

I checked with several companies and they said that if you sign a paper saying you want your renewals to go to someone, then when you die, they contact the company and fill out the EFT form and the renewals will be deposited in their account.

 

[myinsurebiz]

Most Carriers will allow your spouse, sig other or estate to receive them provided they have an Insurance License.

My wife has her Insurance License.

 

[rousemark]

Most Carriers will allow your spouse, sig other or estate to receive them provided they have an Insurance License.

My wife has her Insurance License.

The beneficiary does not have to have a license to receive life and health renewal commissions in TN.

 

[Allen Trent]

Carriers may mention vesting of renewals, but not of service fees. So, it will depend on each contract & how long renewals last (if paid at all) & if they are vested.. then, will possibly depend on whether renewals can be legally paid to an unlicensed person or not

 

[HoosierLife]

Carriers may mention vesting of renewals, but not of service fees. So, it will depend on each contract & how long renewals last (if paid at all) & if they are vested.. then, will possibly depend on whether renewals can be legally paid to an unlicensed person or not

Is that based on the carrier, the state, or both?

 

[Allen Trent]

Is that based on the carrier, the state, or both?

I believe both. Some contracts I have seen show the visual chart of comp like a grid left to right 1st Year New comm, then years 2-8 renewals & 8+ years service fees. Agent might be vested in those 1st 8 years, but not after. Another carrier might call all years renewals & lastly on some products like term, all 1st year new commissions & no renewals or service fees with many. . Lastly, some say they will stop sending compensation when it falls below a certain amount in total. So, like @rousemark said, need to read each contract I you have

 

[noah]

Get your contracts out and read the vesting clauses.

Some have clear language designating the spouse,or the deceased agent’s estate as the payee of renewals some do not have any clear language,at least that I see.

Moo is the only company in my bag that actually has a designated section on the contract to list a person to get the renewals.

I do not see any language in any contract stating the the payee must be licensed to get the funds in any of my contracts.

Looks like the the right way to handle this is to have it spelled out clearly in a medical POA,a living will as well as final will and testament.

I wonder how many guys on here have this all taken care of ?

How many here have an FE policy on themselves ?

Lol !

 

[Tahoe Ray]

Some have clear language designating the spouse,or the deceased agent’s estate as the payee of renewals some do not have any clear language,at least that I see.

Moo is the only company in my bag that actually has a designated section on the contract to list a person to get the renewals.

I do not see any language in any contract stating the the payee must be licensed to get the funds in any of my contracts.

Looks like the the right way to handle this is to have it spelled out clearly in a medical POA,a living will as well as final will and testament.

I wonder how many guys on here have this all taken care of ?

How many here have an FE policy on themselves ?

Lol !

Assign all of your commissions to your agency and then transfer the LLC ownership on death. You need a sub-licensee for the entity so whoever inherits it would need a license but that's a lot cleaner than trying to deal with every carrier in your bag on death.