Commissions in Selling

Jan 11, 2016

  1. mhhorizon
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    mhhorizon New Member

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    I have a very small book of business I am thinking of selling (only $26k wp). I am thinking of "giving" the book to an insurance friend of mine since it is so small actually.

    My question is when you sell your book are you essentially changing the agent of record on all your policies? So that if a policy is in mid-term I would get a charge back on the policy?

    Any help or place you could point me would be much appreciated. Thanks.
     
  2. HCCIA
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    HCCIA Expert

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    So you are talking less than $4,000 in commission. Yes AOR changes, but generally not until renewal. Yes if they change mid-term, you get charge back. I would write it up as part of the deal that he compensate you for any charges.
     
    HCCIA, Jan 11, 2016
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  3. mhhorizon
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    mhhorizon New Member

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    Sweet! Thanks for the reply. So he would just submit the AOR change on each policy's renewal date to prevent a chargeback?
     
  4. HCCIA
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    HCCIA Expert

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    that's how I would do it. Protect yourself! Get it all in writing!!
     
    HCCIA, Jan 26, 2016
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