CO-AGENT Comp?

Discussion in 'General Insurance Agent Discussions' started by MIBizInsurance, Sep 25, 2006.

  1. MIBizInsurance
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    MIBizInsurance Guru

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    What is standard commission split for referred health biz?


    I sell commercial insurance (captive) and company does not write its own health. We do have an agency to go through but its a bloody nightmare.

    Have interviewed local agents and found a person very comfortable to give health leads to.

    He would like to go 50/50 and half ownership. This of course will be in writing.

    Sounds fair enuff as he is doing the brunt of the work. Figure its a start as not ready to go full indy health, doing well on the commercial side.
     
  2. dvd493
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    dvd493 Super Genius

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    In my experience a 50/50 seems pretty standard on a split.
     
  3. MIBizInsurance
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    MIBizInsurance Guru

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    Thanks. Seems fair, but figured I better ask.
     
  4. Crabcake Johnny
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    Crabcake Johnny Guru

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    How are you gonna handle chargebacks?
     
  5. MIBizInsurance
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    We didn't discuss that but I'd be fine/prefer being paid as earned.

    Would avoid the charge back issue all together.

    Being captive I can not be appointed with other companies so this seems like best route for now.
     
  6. somarco
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    somarco That Medicare Guy

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    I don't know which carrier you represent, but a few years back I talked with some local State Farm agents about a split arrangement. The few that were interested wanted to make me more of a captive in order to meet their life quota. The only health carrier I could use was Time (then known as Fortis).

    He would not consider a commission split, but rather would pay me a salary with a bonus based on life & health commissions. The salary was decent and I was looking to test the water since I was still undecided about re-entering the insurance business after a 5 year break. I decided to ask about the life commissions. He proudly told me he earned 40% on life sales.

    I almost laughed out loud.

    I do know other agents who have partnered with P&C agents successfully on a 50/50 split but these are all independent agents, not captive. It can work well but can also be a challenge.

    You definitely want to have all outside arrangements set up on as as earned basis, which may limit your ability to find a life & health agent. Too many are married to the commission advance.

    Good luck.
     
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