Best way to setup contract through different med supp and advantage carriers

Apr 16, 2018

  1. 123insure1900
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    123insure1900 Expert

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    I own an agency and am trying to determine whether it makes sense to be paid directly or to be paid through my agency.

    I am licensed in quite a few states and if I get my agency licensed in those states, I will obviously have to pay the license fee as well as the fee for certificate of authority in certain instances.

    My understanding is that some supplement and advantage plans pay lifetime renewals. I would assume I would need to have my agency licensed and a licensed principal to take over if anything happened to me?

    Really trying to understand the best route.
     
  2. GreenSky
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    GreenSky Guru

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    Both you and the agency will need to be licensed in every state. It doubles the cost.

    Most if not all advantage plans pay lifetime which is generally moot as people can move annually. Some (and only a few) supps pay lifetime.

    Rick
     
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  3. 123insure1900
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    123insure1900 Expert

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    How about if I want to have a downline?
     
  4. 123insure1900
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    123insure1900 Expert

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    and how about for legacy planning? Like, if I wanted the business to continue if something happened to me?
     
  5. GreenSky
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    If you are going to represent MA carriers in general and UHC in particular, you need to be licensed in all states where you have a downline.

    The guy who could give you a bunch of information is Todd King. Give him a call.

    Rick
     
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  6. Todd King
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    Todd King IMO Owner

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    Yes, most of the companies will continue to pay, but only if they have someone to pay to. Some will pay a beneficiary of your choice and others won't pay unless they are paying to someone (or entity) that is licensed.

    So, if you have an entity, there should be another person listed as one of the principles, but they should also have their license whether they actually sell or not. Someone like your spouse, for instance.

    If you don't form an entity, most places would pay out to your spouse, provided your spouse is licensed.

    So, you can go either way you want. The safest bet is to form an entity to begin with and then you won't have to worry about it.
     
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  7. Hopes
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    Does your successor need to certify/recertify for each MA carrier as well?
     
  8. Todd King
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    Since the rules for Medicare Advantage say that you must be certified to receive any commissions for those products, yes, they would have to certify each year as long as renewals for MA products are coming in.
     
  9. Hopes
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    Thank you. My book is small but we were pleasantly surprised when all was said and done after AEP. Thankfully, no one cancelled, I made a nice little chunk (maybe tiny to some agents), and I'm getting a few referrals. I think next year hubby may need to get started studying lol.
     
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