Chargebacks Expected from a Producer??

[Swordfish215]

Hi guys....I'm a producer for a S.F Agent..(Heaviest Hitter she has)...I've only been w/ her for 4 months....If we take commission on Life sales before underwriting gives an ok, and the cust. is declined, we get a chargeback from the agent, and I think this is fine....In essence we're gambling....but my ? is, on P&C, (HO's and autos), she's trying to do the same thing....is this status quo...seems pretty crooked to me.

 

[Chazm]

Hi guys....I'm a producer for a S.F Agent..(Heaviest Hitter she has)...I've only been w/ her for 4 months....If we take commission on Life sales before underwriting gives an ok, and the cust. is declined, we get a chargeback from the agent, and I think this is fine....In essence we're gambling....but my ? is, on P&C, (HO's and autos), she's trying to do the same thing....is this status quo...seems pretty crooked to me.

Maybe I'm not understanding correctly. But if she doesn't get paid on a client, why should you if it wasn't approved ?

 

[Swordfish215]

Example: We sell an HO policy....we get paid Commish....3 wks later underwriting comes back and says.."Hey, we just noticed the porch is attached to that dblwide, we cant continue the policy"(something the agent didn't notice when taking pics)....Then the agent wants the commish she paid me, back.

 

[bill3173]

Maybe I'm not understanding correctly. But if she doesn't get paid on a client, why should you if it wasn't approved ?

....Is it clearer now?

 

[senior-advisor-indiana]

Example: We sell an HO policy....we get paid Commish....3 wks later underwriting comes back and says.."Hey, we just noticed the porch is attached to that dblwide, we cant continue the policy"(something the agent didn't notice when taking pics)....Then the agent wants the commish she paid me, back.

I know the feeling. I went to Cash Advance one time to get some cash, and then like 2 weeks later, the idiots start blowing up my phone wanting me to repay them. I'm going to take them to Judge Judy...

 

[Norwayguy]

Example: We sell an HO policy....we get paid Commish....3 wks later underwriting comes back and says.."Hey, we just noticed the porch is attached to that dblwide, we cant continue the policy"(something the agent didn't notice when taking pics)....Then the agent wants the commish she paid me, back.

So once again the policy is not going to pay the agent the commission and you believe you still deserve the money. Easy solution tell state farm that even though the policy did not meet requirements since its there decision to cancel you believe they should still pay your agent.

 

[senior-advisor-indiana]

So once again the policy is not going to pay the agent the commission and you believe you still deserve the money. Easy solution tell state farm that even though the policy did not meet requirements since its there decision to cancel you believe they should still pay your agent.

What about all the time he spent getting that new client? Are you telling me he doesn't get paid for that? How do you guys make it in this business?

 

[Swordfish215]

All I can say is, when you come back to a producer weeks later, for a return on commission you paid them, and ultimately it wasn't their fault, but possibly yours(the agent), then how do you expect him or her to be a good producer, when they're constantly in fear to sell anything.

 

[senior-advisor-indiana]

All I can say is, when you come back to a producer weeks later, for a return on commission you paid them, and ultimately it wasn't their fault, but possibly yours(the agent), then how do you expect him or her to be a good producer, when they're constantly in fear to sell anything.

You could try and get on disability. Your fears seem legitimate.....

 

[Swordfish215]

You could try and get on disability. Your fears seem legitimate.....

I guess this forum was a dead end....I've been a business owner for many yrs. Absorbing costs is a big part of that....and even if that means being in the red, I do it to keep my people employed. Wish those same ethics we're prevalent in this industry...Ah, who am I kiddin', most agents are too broke to be honorable I guess.