BS of CA IFP Commission Schedule

[Franz Kafka]

My BS of CA Producer Agreement wants to know whether I want schedule A (the usual) or B (a little extra) commission. I call and ask a rep how I can qualify for B and he/she tells me I just need to request it (?) The common sense tells me this guy doesn't know what he/she's talking about. Is anyone familiar with commission schedules for BS IFP?

 

[TXINSURANCE]

Well if they are offering you "a little more" it must be in your best interest! HAHAHA

I believe one is base on original premium and one is based on actual premium over time.

Someone correct me if I am wrong.

 

[Dave020]

Take Schedule A, 20%/10% schedule. B is a rip, it pays 21% then 11% which is a little higher, BUT, it does not pay on the premium increases, while A does. So over the years, say the PPO 2000 goes from $200 a month to $300 a month, on B you get 11% of the original $200, on A you get 10% of the increased $300 premium.

B is intended for those who plan to move clients from carrier to carrier a lot and want the slightly enhanced 1st year commission.

 

[Franz Kafka]

Thanks guys. Knew there had to be a catch.

Dave, I've noticed BS offers a really good ER coverage that others with similar premium don't. Did you notice this?

 

[Dave020]

Yes, I did notice that. On the other side of the coin the subcontract all mental health benefits to a third party company (as does Health Net, Aetna, and most of the others). This is not a great deal since you lose network access through the carrier and have to default to third party company's contracted list (which is never impressive). Also, I think BS has a cap on DME benefits at like $5,000 per year.