Commission split

[Whammer1249]

Hi all,

I have recently gone independent as a one-man shop doing life/annuities after being a captive agent. I have a friend who is an independent P&C producer. He has his life/annuity license, but doesn't like (and doesn't do) any life business. He wants to refer his P&C clients to me to write life/annuities. I will do all the work, be the signature on the policy, and the commission split would be dealt with at the carrier level. What would a fair split for this business arrangement be?

 

[DHK]

http://www.vfos.com/webdocs/161-splittingcaseswithrainmakers-2006c.pdf

Probably either 80/20 or 70/30, depending on his level of involvement in getting his clients to meet with you.

 

[Sconnieagent]

Hi Whammer1249,

Sounds like a great opportunity/partnership. Having business referred is easiest way to get it. However, I wouldn't get too caught up on doing splits without having some minimums in place. Think about how much your time is worth? Are you going to continue to pay the split after the first year? Are you referring P&C biz to him from your L&H book?

If you need a straight answer, I would suggest 70/30 or 60/40. Your time is valuable and so is his/hers and but you want it to be beneficial for both sides.

Good Luck

 

[Whammer1249]

Yes, there's a few things to think about. I want this to be a productive arrangement for both sides, with the numbers fully disclosed and understood up front so there are no issues down the line. Still need to determine my involvement with referring business his way, and if that may change the split %. It's hard to pass up an opportunity for someone to direct business my way!

 

[pfg1]

Hi Whammer1249,

Sounds like a great opportunity/partnership. Having business referred is easiest way to get it. However, I wouldn't get too caught up on doing splits without having some minimums in place. Think about how much your time is worth? Are you going to continue to pay the split after the first year? Are you referring P&C biz to him from your L&H book?

If you need a straight answer, I would suggest 70/30 or 60/40. Your time is valuable and so is his/hers and but you want it to be beneficial for both sides.

Good Luck

This ^^^

 

[Kiwi2020]

Suggestions on where to find the commission split/revenue share rules for the CA Department of Insurance.
Specifically rules regarding PC licensed agents splitting with non-PC licensed agent/agencies.

 

[goillini52]

Suggestions on where to find the commission split/revenue share rules for the CA Department of Insurance.
Specifically rules regarding PC licensed agents splitting with non-PC licensed agent/agencies.

Google?

 

[DHK]

Suggestions on where to find the commission split/revenue share rules for the CA Department of Insurance.
Specifically rules regarding PC licensed agents splitting with non-PC licensed agent/agencies.

You can't.

 

[goillini52]

You can't.

Can't what?

 

[DHK]

You can't split commissions with non-licensed people in California.