Assignment of commissions

[myinsurebiz]

In Georgia - the Beni, whether a person or an entity, has to have an active license in order to receive commissions / over-writes.

Georgia has a Temporary License that a survivor can start with if they aren't currently licensed. They have a total of 180 days to complete the test and acquire the license.

 

[rousemark]

In Georgia - the Beni, whether a person or an entity, has to have an active license in order to receive commissions / over-writes.

Georgia has a Temporary License that a survivor can start with if they aren't currently licensed. They have a total of 180 days to complete the test and acquire the license.

That is if they want to continue to service the business and receive service fees, They can receive vested renewals without being licensed.

 

[somarco]

That is if they want to continue to service the business and receive service fees, They can receive vested renewals without being licensed.

Do "vested" renewals continue in perpetuity? The carrier will pay to a designated beneficiary, trust, business entity or the estate?

 

[mudhound]

I detest assignments
when someone other than you controls your money they control you.
You will do x or i will not pay you! nope nope nope!!!

 

[rousemark]

Do "vested" renewals continue in perpetuity? The carrier will pay to a designated beneficiary, trust, business entity or the estate?

Yes, until the amount payable falls below a preset threshold... Most companies seem to state it is around $600 the previous year.. Some are more, some less.

 

[somarco]

Yes, until the amount payable falls below a preset threshold... Most companies seem to state it is around $600 the previous year.. Some are more, some less.

Must be different in TN.

One year I was a few weeks late in renewing my license. Some, but not all, carriers stopped paying until the GA DOI showed my license was active again. Anthem & UHC are on top of things and quick to stop paying. Might be other carriers but when this happened (temporary lapse) those carriers were paying me several thousand $$ each month.

I got caught up with the state, paid the late fee, and went back to business as usual . . . but only after calling the carriers to let them know the license was reinstated. They made "catch up" payments so I only had a cash flow crunch but did not lose commissions.

 

[Tahoe Ray]

I detest assignments
when someone other than you controls your money they control you.
You will do x or i will not pay you! nope nope nope!!!

OP wants to assign commissions of his personal production to his/her agency, which is not uncommon if you also own the agency.

If someone else (likely a spouse) is a co-owner and unlicensed and OP drops dead, will the renewals continue to be paid if the other owner isn't licensed?

I believe the answer to be "no," since someone in the ownership group of the agency needs to be licensed (as a sub-licensee) to keep the entity licenses active.

This is a great question for his/her carriers since as it's been pointed out, different products and states may have different rules.

 

[rousemark]

This is the vesting in the Aetna contract (just the one I happen to have saved on my computer) Notice there is no requirement for being licensed in the vesting provisions.
7. Compensation due and payable to GA will be fully vested and payable to GA after termination of this Contract subject to the following provisions:

al If such termination is for any cause other than GA's death or GA's violation of any of the terms or provisions of this contract, GA will receive first year commission, first year override commission, renewal commission, and renewal override commission as provided in Paragraphs 8 and 9 hereof.

(bl If such termination is due to the death of the GA, the first year commission, first year override commission, renewal commission and renewal override commission as provided in Paragraphs 8 and 9 hereof, unless assigned, will be paid to the surviving spouse. Otherwise the commission will be paid to the executors, administrators or assigns of GA.
I had friends in GA who have passed away and their kids are still receiving renewals through the estate and no one is licensed. Also know some whose spouse is receiving the renewals without being licensed.

 

[rousemark]

This is the vesting in the Aetna contract (just the one I happen to have saved on my computer) Notice there is no requirement for being licensed in the vesting provisions.
7. Compensation due and payable to GA will be fully vested and payable to GA after termination of this Contract subject to the following provisions:

al If such termination is for any cause other than GA's death or GA's violation of any of the terms or provisions of this contract, GA will receive first year commission, first year override commission, renewal commission, and renewal override commission as provided in Paragraphs 8 and 9 hereof.

(bl If such termination is due to the death of the GA, the first year commission, first year override commission, renewal commission and renewal override commission as provided in Paragraphs 8 and 9 hereof, unless assigned, will be paid to the surviving spouse. Otherwise the commission will be paid to the executors, administrators or assigns of GA.
I had friends in GA who have passed away and their kids are still receiving renewals through the estate and no one is licensed. Also know some whose spouse is receiving the renewals without being licensed.

Payment is made until the amount drops below $300 in a year.

 

[Todd King]

You should read a few other contracts. You just happened to have picked one with such language.