Commission Split with Non-appointed Agent

[Todd King]

I have an agent that agreed to do an annuity commission split with another agent.

Here's the breakdown: Agent #1...appointed with the company the business is being written with. Agent #2...not appointed with the company.

Agent #2 didn't want to get appointed with the company for whatever reason, so he referred the client to agent #1.

My question is this: Does anyone know of any reason that Agent #1 can't legally split this and 1099 Agent #2?

 

[STIBROKER]

no.......check would have to come from his account though.....

 

[Chazm]

Had a similar situation happen before with a co-worker. He was appointed with annuity company, the other agent wasn't. They split a $15k commission. Lady ended up having dementia and he got reported. Lost the commission and owed the whole $15k even though he only received $7.5k. Never got the money from the other guy

 

[STIBROKER]

that is a good point........could be a scam on the referring agent also....how well does he know the client......

Had a similar situation happen before with a co-worker. He was appointed with annuity company, the other agent wasn't. They split a $15k commission. Lady ended up having dementia and he got reported. Lost the commission and owed the whole $15k even though he only received $7.5k. Never got the money from the other guy

 

[baggins415]

I have an agent that agreed to do an annuity commission split with another agent.

Here's the breakdown: Agent #1...appointed with the company the business is being written with. Agent #2...not appointed with the company.

Agent #2 didn't want to get appointed with the company for whatever reason, so he referred the client to agent #1.

My question is this: Does anyone know of any reason that Agent #1 can't legally split this and 1099 Agent #2?

He's probably thinking that he's going to get away with the taxes (no 1099) or possibly was turned down by the insurance co earlier. I would find out exactly why he won't fill out the contracting paperwork....
Then I would politely tell him that if he wants to get paid that he better fill it out. It would be too easy to pull a scam this way (if you don't know the agent(s) well).

 

[Todd King]

that is a good point........could be a scam on the referring agent also....how well does he know the client......

LOL...the client is the father of Agent #2.

 

[Chazm]

^Lol SCAM!!

 

[STIBROKER]

hahahaha.....something stinks with this deal....I would step off......

LOL...the client is the father of Agent #2.

 

[Mark]

I don't understand why agent # 1, just dont get contracted and do it.

 

[GoCubsGo]

Agent #2 probably doesn't think they can get appointment approved. American Equity requires very good credit.