Are chargebacks for earned commissions common?

[marindependent]

I don't see how I could guarantee that they stay insured for 12 months. Is there a way around this?

You Can't.

There are so many reasons for people to leave you its crazy, sell their house, move out of state, get married/divorced, someone dies, insurer nonrenewals, etc. I would say on average the vast majority of defections I see are something that is totally out of my control. For captive agencies a big part of the problem is the pricing and the inability to shop it around, some clients will just get sick of it and find an independent.

I too believe that this Allstate person is being... too hard on it. I would consider looking around. I think charging you for commissons not earned that is fine, but for earned commissions, hum...

 

[gdoumit917]

I was fortunate to work for a good life carrier. I understand why they chargeback but it should be pro-rated.
Considering Final expense is a great idea at the moment as well as other coverages like hospital indemnity, long term, critical illness. The key is to find a niche market and a company you think provides the best coverage for your market. And it will sell itself.

 

[fed up]

I have worked for several Allstate Agents since 2014. Their commission is prorated on the chargeback so if the customer leaves after 4 months, the agent is charged back for 2 months of premium. It is stated right on the policy narrative when a chargeback occurs and how much Allstate takes back. any person who accepts a position working for an Allstate Agent on a commission only basis is a fool. That is why agents churn through so many LSP's. they take the business of the LSP's family and friends and spit them to the curb when the productivity wanes

 

[ehall2]

I got my life and health insurance in 1972. I now have a P & C license also and own an independent multi line agency. After all these years I think I have seen it all and I can tell you I wouldn't touch anything with Allstate's name on it with a ten foot pole. They are ruthless dealing with their agents. I have met many former Allstate agents over the years and I haven't talked to one yet that didn't hate Allstate and are glad they left.

 

[Allen Trent]

I think many of you are misinterpreting this. Most PC policies are a 6 month or 12 month policy when issued no matter if client pays monthly, semi annual or whatever. Plus, there are numerous transactions that add or take away premium through out the policy period. Inn commercial policies that are audited, there are even adjustments well after the policy period that add or take away premium.

Sooooo, every single month there are accounting transactions adding & subtracting premiums which in turn adjust up or down the commission.

Lastly, most PC policies completely refund clients any & all unused days of coverage when they cancel, remove cars, remove coverage or buy a new home.

So, to the OP of this, this is perfectly normal & not a reason to be alarmed. There are plenty of other reasons to not want to be connected to Allstate, but this is a non issue in my mind

 

[Allen Trent]

Like even if they paid for 8 months and then cancelled, I'd have to pay back the entire 12 months of

commission.

Ask for this point to be clarified. Did he maybe give you an example where he said someone cancels a 12 month policy after 8 months so 4 months of premium is backed out because 12 months was originally credited by Allstate when the policy issued?