Capped Commissions

[VolAgent]

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.

I understood it to be a single case cap with Foresters? I know a few companies do aggregates, but I wasn't aware Foresters was one of them. For an aggregate, that is very low. If you were going to use them as a primary company, you could hit that in two weeks or even just a week depending on what makes sense for your clients and how productive you are.

 

[TwiLight]

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.

That is not actually the case with us. I have agent's with 15k+ balances that were appointed in the past year, in aggregate and I never had to sign off on higher amounts.

Only a specific Per Case Sign off is needed on original contract submission, which the IMO can choose in $500 increments from $1500 - $3500 and a Percent in 5% increments to a max of 75%.

If this is actually occurring as you state, it is an individual individual IMO choosing to do this or their NMO. Our NMO is under no such restriction.

 

[jdeasy]

I understood it to be a single case cap with Foresters? I know a few companies do aggregates, but I wasn't aware Foresters was one of them. For an aggregate, that is very low. If you were going to use them as a primary company, you could hit that in two weeks or even just a week depending on what makes sense for your clients and how productive you are.

Right. It was ahuge issue when they first did it. But when the IMO was able to make exception it kept the high producers satisfied.

It came from P&A. I've always been as earned with Foresters so it never affected me but some of the high producers that got advances were throwing a fit about it.

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That is not actually the case with us. I have agent's with 15k+ balances that were appointed in the past year, in aggregate and I never had to sign off on higher amounts.

Only a specific Per Case Sign off is needed on original contract submission, which the IMO can choose in $500 increments from $1500 - $3500 and a Percent in 5% increments to a max of 75%.

If this is actually occurring as you state, it is an individual individual IMO choosing to do this or their NMO. Our NMO is under no such restriction.

They cod have changed it in the last 3 years. EFES said it was forced on them because of P and A. I would think that as much production as EFES was doing with Foresters at that time that they could have had the best deal.