agency chargebacks

[mcmmcm]

How are agency chargebacks handled if the agent is not LOA? I didn't realize the agency gets a chargeback if you change someone during aep. I am currently LOA so they will take it out of my commission

 

[DonP]

How are agency chargebacks handled if the agent is not LOA? I didn't realize the agency gets a chargeback if you change someone during aep. I am currently LOA so they will take it out of my commission

What do mean if you change someone during aep ? Who changed what ?

 

[axeman462]

How are agency chargebacks handled if the agent is not LOA? I didn't realize the agency gets a chargeback if you change someone during aep. I am currently LOA so they will take it out of my commission

If not LOA, the chargeback appears as debt on your commission statement and will be paid back with future commissions.

In some cases, usually if you have low production or take too long to work off the debt, the carrier may want you to pay back sooner. In which case you will write a check to the insurance company.

Or you could opt for the deadbeat route, not pay it back, and get vector listed.

The first year or two Indy can be rough.

 

[mcmmcm]

What do mean if you change someone during aep ? Who changed what

A client picked a plan during aep and then got on a new T4 drug so we switched to a plan with a lower Rx deductible. The agent who owns the agency I'm in(she is new to having an agency) told me she received an agency chargeback for me switching the client during aep.

 

[mcmmcm]

If not LOA, the chargeback appears as debt on your commission statement and will be paid back with future commissions.

In some cases, usually if you have low production or take too long to work off the debt, the carrier may want you to pay back sooner. In which case you will write a check to the insurance company.

Or you could opt for the deadbeat route, not pay it back, and get vector listed.

The first year or two Indy can be rough.

Oooh! So when I'm completely independent chargebacks no longer affect the agency because I'm not in the agency? I hope this makes sense. below I explained the situation more

 

[mcmmcm]

Oooh! So when I'm completely independent chargebacks no longer affect the agency because I'm not in the agency? I hope this makes sense. below I explained the situation more

A client picked a plan during aep and then got on a new T4 drug so we switched to a plan with a lower Rx deductible. The agent who owns the agency I'm in(she is new to having an agency) told me she received an agency chargeback for me switching the client during aep.- this is what I wrote

 

[DonP]

A client picked a plan during aep and then got on a new T4 drug so we switched to a plan with a lower Rx deductible. The agent who owns the agency I'm in(she is new to having an agency) told me she received an agency chargeback for me switching the client during aep.- this is what I wrote

Yes the agency gets paid overrides all during aep . The business you write gets paid out at the agent level in Jan . Since your a Loa your commissions are assigned to the agency .So she got overrides paid 2 times and had to pay 1 of the overrides back . Did she pay you 2 times as a loa agent . Some loa's have no chargebacks as the commission is so low and the accounting a nightmare . I'm assuming they pay you all through aep . What's your contract say about charge backs ?

 

[mcmmcm]

She initially said I was responsible of course for my own chargebacks (which I haven't gotten a producer chargeback yet/before) but she did not say anything about if it'd this style of chargeback. It was like $30 I want to say she said.

 

[DonP]

She initially said I was responsible of course for my own chargebacks (which I haven't gotten a producer chargeback yet/before) but she did not say anything about if it'd this style of chargeback. It was like $30 I want to say she said.

You've said nothing on how your paid ? Are you on per hr pay plus you get commission per application you write ?Do you get weekly salary plus a set $ per app you write ? Most importantly did you get paid a commission 2 times on that 1 person ? If so then you owe 1 commission back

 

[axeman462]

Oooh! So when I'm completely independent chargebacks no longer affect the agency because I'm not in the agency? I hope this makes sense. below I explained the situation more

If you go the deadbeat route, the chargeback will roll up to your upline. So yes, they will still affect the agency/FMO you contract through.
I think they also get a chargeback on the overrides