Capped Commissions

[kohelet]

I recently joined this forum and posting for the first time. I just got appointed with foresters and they cap commissions on their 9 month advance at$3500. Does anyone know of carriers with higher caps and higher commissions in general for whole life, term and fe. I'm in ny but in process of getting non resident license in nj as well
Thanks

 

[jdeasy]

I recently joined this forum and posting for the first time. I just got appointed with foresters and they cap commissions on their 9 month advance at$3500. Does anyone know of carriers with higher caps and higher commissions in general for whole life, term and fe. I'm in ny but in process of getting non resident license in nj as well
Thanks

They don't cap commissions. They say your advance balacne can't be over $3500. That number will constantly change as people pay their premiums.

The IMO can also get an increase in that advance balance for their agents.

That advance cap was put on a few years as a direct result of one IMO that sells mostly by phone and they were running up huge debits and then leaving the IMO.

That IMO is based in Meridian, Mississippi. Instead of just making a rule for the for the offending IMO, Foresters decided to punish all agents.

 

[Tahoe Ray]

I recently joined this forum and posting for the first time. I just got appointed with foresters and they cap commissions on their 9 month advance at$3500. Does anyone know of carriers with higher caps and higher commissions in general for whole life, term and fe. I'm in ny but in process of getting non resident license in nj as well
Thanks

To my knowledge, you're not going to find any "higher commission in general" in NY than Foresters...maybe Pete Cormie knows of a company or two but most of the major carriers are going to have much lower comp than what you can get from Foresters.

 

[TwiLight]

The Advance Cap of $3500 is on a per Certificate basis and is the Max allowed by Foresters with a 75% max of Premiums only on Monthly PAC.

Most IMO's use $2500 as a per certificate cap that I have Seen and is solely at the discretion of the IMO.

----------

To my knowledge, you're not going to find any "higher commission in general" in NY than Foresters...maybe Pete Cormie knows of a company or two but most of the major carriers are going to have much lower comp than what you can get from Foresters.

DITTO on NY. Have not found a carrier that pays more than Foresters either.

 

[kohelet]

Thanks for the replies.. what about nj do carrier's cap commissions on advances as well until you establish a track record of paying premiums or can you start with a higher cap? Also, Which carriers are best for term, fe and whole life with regards to commissions?

 

[TwiLight]

Thanks for the replies.. what about nj do carrier's cap commissions on advances as well until you establish a track record of paying premiums or can you start with a higher cap? Also, Which carriers are best for term, fe and whole life with regards to commissions?

Commission caps are for Producers needing help and to protect the company against greedy scam artists.

Large Premium Cases should be paid as earned any way.

For those looking for higher caps per case and wanting to be annualized is a big red flag for me and would likely put me as an IMO on the defense of any producer wanting a higher cap per case.

 

[VolAgent]

Thanks for the replies.. what about nj do carrier's cap commissions on advances as well until you establish a track record of paying premiums or can you start with a higher cap? Also, Which carriers are best for term, fe and whole life with regards to commissions?

These caps only apply to single cases, not as an aggregate. Although I do think there are a few companies out there that will cap the aggregate for newer agents. The caps are all pretty reasonable. $2500 on a single case in the FE world is a big pay day. They are protecting both you and them against an even bigger chargeback in case of a lapse. They will still pay out the entire commission, they just are limiting how much they will advance on a single case.

 

[kohelet]

Makes sense.. thanks for the replies ..Cheers

 

[TwiLight]

These caps only apply to single cases, not as an aggregate. Although I do think there are a few companies out there that will cap the aggregate for newer agents. The caps are all pretty reasonable. $2500 on a single case in the FE world is a big pay day. They are protecting both you and them against an even bigger chargeback in case of a lapse. They will still pay out the entire commission, they just are limiting how much they will advance on a single case.

What He said......Only more PC than me.

 

[jdeasy]

These caps only apply to single cases, not as an aggregate. Although I do think there are a few companies out there that will cap the aggregate for newer agents. The caps are all pretty reasonable. $2500 on a single case in the FE world is a big pay day. They are protecting both you and them against an even bigger chargeback in case of a lapse. They will still pay out the entire commission, they just are limiting how much they will advance on a single case.

That's not the situation he is talking about with Foresters. You are talking about a commission advance cap per case and most do cap that at $2500. Some at $1500 and LH was $800 when I was with them.

The OP is talking about the aggregate advance cap that Foresters put on about 3 years ago. If you have more than $3500 in advance balance they pay as earned until that advance balance falls below $3500. It is fluid since the advance balance does go down each month as people pay.

The IMO can get that advance cap raised on an individual basis.