Agency is Not Paying MAPD Renewals Due to Low BOB Count

[wehotex]

about 6 years back, I switched agencies because one was offering more commission than the other.
One was Barry Fisher in woodland Hills, calif and the other in Orange Calif (don't remember the name). Barry fisher was paying me something like $90/yr for 3 Secure Horizons members. Very piddling amount. Then, a few years back, they sent a letter saying that they were no longer going to pay out even that amount if the book of business was below a certain amount. If they are still receiving renewals from United, aren't they obligated to pay out anything to the agent? Unfortunately, I think that this is another example of taking the lumps from being a solicitor rather than the agent of record.

 

[Todd King]

Ah, the pains of assigning your commissions to someone else. I know you've now learned that lesson and will share it with every agent you ever come across!

No, they aren't obligated to do that. After all, it isn't your money, it's theirs!

 

[Frank Stastny]

Ah, the pains of assigning your commissions to someone else. I know you've now learned that lesson and will share it with every agent you ever come across!

No, they aren't obligated to do that. After all, it isn't your money, it's theirs!

Life's tuition can be very expensive.

 

[tins]

This is how most of us learned this lesson.
Think of it as a learning experience, as Frank said, it's tuition in this biz.
But be happy, you will never make the mistake of assigning your commissions ever again.

 

[Norwayguy]

This does sound liek the woes of Assigning Commission and probably is....However please be aware that it is not limited to just assigned commissions. Many carriers have included in thier contracts a clause that if you end your appointment with them even though you are vested in commissions they will cease paying those commissions once they drop below a certain dollar amount...A common amount is $300....But I think agents on here have seen some really strange numbers....Read your contracts.

You might want to pull out the old contract and see if this is mentioned in the contract otherwise they might be obligated to pay, however your not going to take them to court over $90 per year because it isn't worth the time and hassle.

 

[G.Gordon]

... why post a thread at all over a $90/yr issue? I burned $90 worth of time just reading it.

Send me your address so you can be invoiced.

 

[wehotex]

This does sound liek the woes of Assigning Commission and probably is....However please be aware that it is not limited to just assigned commissions. Many carriers have included in thier contracts a clause that if you end your appointment with them even though you are vested in commissions they will cease paying those commissions once they drop below a certain dollar amount...A common amount is $300....But I think agents on here have seen some really strange numbers....Read your contracts.

You might want to pull out the old contract and see if this is mentioned in the contract otherwise they might be obligated to pay, however your not going to take them to court over $90 per year because it isn't worth the time and hassle.

I don't think that it's supposed to be $90/year. Nowadays, SH renewals are about $21.00 or so a month ($252) x 3 = $756. that's the amount that I'm getting at. It's been at least 3 years since they stopped paying, so $756 x 3 years...
That's what I'm getting at. Greedy FMOs and insurance cos get richer and devise ways to not pay the agents. Sickening.

 

[GreenSky]

I don't think that it's supposed to be $90/year. Nowadays, SH renewals are about $21.00 or so a month ($252) x 3 = $756. that's the amount that I'm getting at. It's been at least 3 years since they stopped paying, so $756 x 3 years...
That's what I'm getting at. Greedy FMOs and insurance cos get richer and devise ways to not pay the agents. Sickening.

Until we got screwed (thanks Humana), renewal commissions were not standard. Could be only $90/yr if written over 3 years ago.

I don't believe carriers generally upped the commission rate.

Although I don't agree, if your annual commission for all business is under $300 it may not be unusual for them not to paid by marketers.

BTW, although Fisher did have a contract with Secure Horizons, I remember that this was a very minor part of their business. Although I knew both Barry and other in their office, I chose not to work with them.

Rick