1st Week Results . . .

[FinalExpenseDojo.com]

Lot easier just to LOA the agents.. When I started an agency almost all sub agents were LOA... Th GA was responsible for paying them.. I came to hate dealing with it. One of my concerns became, "What if I kick the bucket, how are the agents going to get what they are entitled to receive'? After all, they had families to support and they depended on that money coming in. I would not sign an LOA contract today and I wouldn't ask anyone else to do what I won't do.

Correct me if I'm wrong, but wasn't the issue you had a contract issue not a LOA issue?

If a proper agent contract is put together, it would legally entitle you to what was agreed upon whether you're getting paid by the carriers or agency.

That's what makes the carriers pay us all renewals & paythroughs. A contract...

 

[myinsurebiz]

Correct me if I'm wrong, but wasn't the issue you had a contract issue not a LOA issue?

If a proper agent contract is put together, it would legally entitle you to what was agreed upon whether you're getting paid by the carriers or agency.

That's what makes the carriers pay us all renewals & paythroughs. A contract...

The agent could get paid 1099 by the carriers and also get paid W2 by us - but, what a pain in my mind. Jokers won't pay their taxes on the 1099 part and I get hit with a garnishment notice from the IRS - been there - done that . . .

With our bonus structure - an agent could earn up to 100% of the premiums paid months 4 - 12 . . . I'm just making sure that I never, ever, pay roll up debt on 110%+ contracts again on dozens of agents - never again . . .

3 month Advance + production and retention bonuses

 

[rousemark]

Correct me if I'm wrong, but wasn't the issue you had a contract issue not a LOA issue?

If a proper agent contract is put together, it would legally entitle you to what was agreed upon whether you're getting paid by the carriers or agency.

That's what makes the carriers pay us all renewals & paythroughs. A contract...

Not sure of the issue you are referring to unless it was the issue with Continental Life. In that case, it was a contract issue and I blame no one but myself for not reading the contract more closely. However, I did have one GA that failed to pay what he was supposed to on an LOA contract. I made up my mind at that time I would never again assign commissions.

 

[FinalExpenseDojo.com]

Not sure of the issue you are referring to unless it was the issue with Continental Life. In that case, it was a contract issue and I blame no one but myself for not reading the contract more closely. However, I did have one GA that failed to pay what he was supposed to on an LOA contract. I made up my mind at that time I would never again assign commissions.

I wasn't referring to any specific instance. But you answered my question with the second half of your post. Now that you went in detail, I completely understand why you would be against it once you got burned multiple times.

 

[NSRH]

Correct. I don't have a problem paying peeps what they are due. Once they leave - we'll hold all 1st year earned commissions until the 91st day passes that they last wrote business.

Really the only reason we aren't paying renewals is because it's not worth it to me to do all the accounting / direct deposit for what is probably 2% of a few $50 monthly polices . . .

I would hold that as earned commissions for 9 months to ensure I am not left with a debit balance. If no new business is being written, I would use the as earned as collateral for future debt. Just my thoughts.

 

[JimmyCrappedCorn]

The agent could get paid 1099 by the carriers and also get paid W2 by us - but, what a pain in my mind. Jokers won't pay their taxes on the 1099 part and I get hit with a garnishment notice from the IRS - been there - done that . . .

If the agent does not pay his taxes on his 1099 from the carrier its got nothing to do with you. There is no way the IRS can hold you liable. Secondly even if the IRS did hold you liable they would only threaten to garnish if you were jacking them around.

 

[rousemark]

If the agent does not pay his taxes on his 1099 from the carrier its got nothing to do with you. There is no way the IRS can hold you liable. Secondly even if the IRS did hold you liable they would only threaten to garnish if you were jacking them around.

I think he is referring to the fact he has to deal with garnishment that the IRS levies against the employee.

 

[chasejordan1]

We will still pay them Pass Thrus if they quit. Will just hold them for 91 days after they write their last policy.

We aren't going to pay Renewals to anyone but active Managers.

If they quit or get fired don't pay them chit except there last check for hours, you hold all "pass thru's" for charge backs.

 

[chasejordan1]

They are Employees not Independent Agents. They really shouldn't be entitled to the Pass Thrus - but, I'm a nice guy . . .

Don't be silly, business isn't about being nice, the only thing they earned was the hourly and the 3 month advance that is it.

 

[VolAgent]

I fail to see why this has taken pages and pages of posts.

If they are an employee they get paid by the company. To do otherwise creates a conflict of interest. They are my employee, not the carrier's. Any legal or regulatory or other reason becomes moot at that point.

Once you leave, you get paid your last week's check and any future commissions are mine. Offset against chargebacks and used to offset the cost of training your replacement.

Don't like it, don't work here.

Is it a great plan, I don't know and I don't care. That is the only sensible way to set it up as the employer. The employee can then decide to take it or leave it.