Commissions after Death

[Alston]

I'm putting together some instructions for my wife.

I'm fine. No health issues. But I suppose the best time to do this is when I'm fine. My brain is mostly on line and I'm not being driven by emotion.

I started in the business in the year 22 BI (Before iPhones).

At some point in 22 or 21 BI, I was told an agent's estate could get a short term insurance license. The license would allow his or her family to receive commissions for a year.

I don't know if this is true because I only heard it once. But it seems logical at least for FYC.

It makes sense that the agent's estate would be owed at least any first year commission he or she hadn't received while alive. It makes less sense that posthumous renewal commissions are owed the agent's family.

Is this true?

Was it ever true?

(If it's true, I suppose I'd have to pass AHIP on my deathbed in order for my wife to get the full 12 months.)

 

[Mike Siegal]

Why not sell or gift her your bob?

 

[rousemark]

I'm putting together some instructions for my wife.

I'm fine. No health issues. But I suppose the best time to do this is when I'm fine. My brain is mostly on line and I'm not being driven by emotion.

I started in the business in the year 22 BI (Before iPhones).

At some point in 22 or 21 BI, I was told an agent's estate could get a short term insurance license. The license would allow his or her family to receive commissions for a year.

I don't know if this is true because I only heard it once. But it seems logical at least for FYC.

It makes sense that the agent's estate would be owed at least any first year commission he or she hadn't received while alive. It makes less sense that posthumous renewal commissions are owed the agent's family.

Is this true?

Was it ever true?

(If it's true, I suppose I'd have to pass AHIP on my deathbed in order for my wife to get the full 12 months.)

It depends on the line of business., company and jurisdiction. In most cases life and ancillary health health commission is vested to the estate until it falls below the company minimum payment. No need for a temp license. That is the reason I now concentrate on those lines with a minimum of companies.

 

[goillini52]

(If it's true, I suppose I'd have to pass AHIP on my deathbed in order for my wife to get the full 12 months.)

Another reason to not sell MA.

 

[somarco]

AHIP issues aside, and it may vary by carrier/state . . . but I know my carriers will (and have) stopped paying commissions once my license expires (even though I haven't). A few times I got busy and didn't do my CE until the last minute . . . then I paid for my renewal.

At least one carrier stopped paying until I inquired. They said my license expired so they stopped paying. Once I sent a copy of my license they paid the missing $$$ and continued going forward.

Another carrier not only stopped paying but they assigned submitted apps with future effective dates to house accounts. Yeah, I had a lot of fun getting those back. Took a couple of months and many phone calls/emails to get back the apps that were snaked by the carrier.

Alston, I hope you stick around for a very long time and continue to enjoy good health.

 

[goillini52]

AHIP issues aside, and it may vary by carrier/state . . . but I know my carriers will (and have) stopped paying commissions once my license expires (even though I haven't). A few times I got busy and didn't do my CE until the last minute . . . then I paid for my renewal.

At least one carrier stopped paying until I inquired. They said my license expired so they stopped paying. Once I sent a copy of my license they paid the missing $$$ and continued going forward.

Another carrier not only stopped paying but they assigned submitted apps with future effective dates to house accounts. Yeah, I had a lot of fun getting those back. Took a couple of months and many phone calls/emails to get back the apps that were snaked by the carrier.

Alston, I hope you stick around for a very long time and continue to enjoy good health.

On Med Supps, they're supposed to be vested for the life of the policy...unless your renewals dip below an annual amount(some are $600).

I have had them hold a new commission up a couple of times until they updated my license(their error).

 

[Alston]

Alston, I hope you stick around for a very long time and continue to enjoy good health.

Back at cha.

 

[somarco]

On Med Supps, they're supposed to be vested for the life of the policy...unless your renewals dip below an annual amount(some are $600).

I have had them hold a new commission up a couple of times until they updated my license(their error).

I may be wrong, but just because you are vested doesn't mean they will pay you if your license isn't current. Once you die how you gonna do the CE and renew your license?

Asking for a friend . . .

Dead guys don't cash checks.

 

[rousemark]

I may be wrong, but just because you are vested doesn't mean they will pay you if your license isn't current. Once you die how you gonna do the CE and renew your license?

Asking for a friend . . .

Dead guys don't cash checks.

The vested is for life of the policies.. Renewal commission is paid even after your license is terminated.. I have friends that are still drawing some pretty nice checks every month even though they lat their license expire 5+years ago.

 

[Alston]

Why not sell or gift her your bob?

She's not licensed.