Charge Back for Death or Lapse

[Todd King]

That's on "earned" commissions Todd.

What you been smokin'?

Nothing yet! Look at the attachment. I'll let it talk for me. Says nothing about "earned" or "unearned". Looks pretty plain and simple to me.

 

[myinsurebiz]

Every company will do that Tom.

What you been smokin'?

Todd says AIG doesn't . . .

 

[myinsurebiz]

the 25% is in addition to any unearned advances is what I was just told by AIG. So - if the client pays $30 a month for 4 months and quits - the Agent is charged 25% of that $120 -or- $30 + the Agent has to pay back the 2 months unearned.

 

[goillini52]

Nothing yet! Look at the attachment. I'll let it talk for me. Says nothing about "earned" or "unearned". Looks pretty plain and simple to me.

Well I have been smokin', and I still know that no Insurance company is going to advance you 6 months premium and not charge you back the unearned advance regardless of why the policy didn't stay in force.

I have that same commission sheet in my filing cabinet. You could always give AIG a call.

I think LD's finally getting to you. Time for a doobie Todd.

 

[rousemark]

I really don't know of any company that doesn't charge back when they rescind a policy. Lapses are a different story. AIG doesn't charge back for lapses after 3 months.

I wasn't talking about rescission. I expect them to charge back in that case. I am talking about natural death claim paid fr the rop plus interest DB.

 

[myinsurebiz]

Well I have been smokin', and I still know that no Insurance company is going to advance you 6 months premium and not charge you back the unearned advance regardless of why the policy didn't stay in force.

I have that same commission sheet in my filing cabinet. You could always give AIG a call.

I think LD's finally getting to you. Time for a doobie Todd.

I called AIG - what I posted is what they told me . . .

 

[Newby]

Well I have been smokin', and I still know that no Insurance company is going to advance you 6 months premium and not charge you back the unearned advance regardless of why the policy didn't stay in force.

I have that same commission sheet in my filing cabinet. You could always give AIG a call.

I think LD's finally getting to you. Time for a doobie Todd.

Never say never. PreNeed companies don't charge back the advance if there is a death and it is not rescinded. And those are rarely rescinded because they have complete GI with great terms and the same premium and commission as preferred.

In my most extreme case (bad for the insurance carrier) I wrote a husband and wife two funerals and they made the first monthly premium. They both died in an auto accident a week later. The insurance company paid out $22,000 in funeral expenses and over $3,000 to me. I think the premiums they collected were around $150 X 2 so $300.

I had a really hard time closing that one. The husband was totally against it and they were getting into a fight. I 30-day free looked it to get out of there.

 

[goillini52]

Never say never. PreNeed companies don't charge back the advance if there is a death and it is not rescinded. And those are rarely rescinded because they have complete GI with great terms and the same premium and commission as preferred.

In my most extreme case (bad for the insurance carrier) I wrote a husband and wife two funerals and they made the first monthly premium. They both died in an auto accident a week later. The insurance company paid out $22,000 in funeral expenses and over $3,000 to me. I think the premiums they collected were around $150 X 2 so $300.

I had a really hard time closing that one. The husband was totally against it and they were getting into a fight. I 30-day free looked it to get out of there.

So PreNeed's the exception. I've never done it, there're a lot of things that are different about it.

I'm sure that couple were glad that you were persistent.

 

[Newby]

So PreNeed's the exception. I've never done it, there're a lot of things that are different about it.

I'm sure that couple were glad that you were persistent.

Yeah. The wife did all the heavy lifting on that sale. I pretty much just was ready t leave. Sale or no sale. Sometimes things just fall into place.

 

[Todd King]

the 25% is in addition to any unearned advances is what I was just told by AIG. So - if the client pays $30 a month for 4 months and quits - the Agent is charged 25% of that $120 -or- $30 + the Agent has to pay back the 2 months unearned.

That's exactly right. They just don't write on there that it is earned commissions that are charged back at 25% and unearned is 100%, just like the monkey said to begin with.