Commissions Paid in Full or Monthly?

Aug 30, 2015

  1. mdl
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    mdl New Member

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    Do carriers pay commissions immediately/up front when a insured pays his or premium or are they paid out on a monthly basis? for home, auto and life?

    Thanks!
     
    mdl, Aug 30, 2015
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  2. WinoBlues
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    WinoBlues Guru

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    Life - if the premiums are paid monthly you are paid monthly unless you are on an advance. Then you could get 6 to 9 month advance usually. There are some variations like monthly direct, Direct Express or credit card payments.
     
  3. indienoise
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    indienoise Guru

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    Nonstandard auto tends to be as earned, some larger ones pay in full. Standard auto and home pay in full as written. I actually prefer as earned so I'm not messed up by chargebacks, and makes my monthly income more predictable. Hate having a huge month followed by a stinker and just barely covering expenses, ya know?
     
  4. LGilmore
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    LGilmore Guru

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    I prefer as earned and do that even if annual is offered. Why? Chargebacks are a bad word, and like many agents, if I kill an elephant one month I tend to feed off that elephant for the months following rather than continue hunting. As earned keeps me hunting every month.

    If you're wondering if I lack self control about annualized commissions the answer is yes. So I purposely do as earned. Know yourself and your habits. This is also why I bottle my beer rather than keg it. A keg would be like having your own slurpie machine in your house.
     
    LGilmore, Aug 30, 2015
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  5. cgreene
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    cgreene Guru

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    A lot of life companies have switched to advance. I prefer this because I have only had a few charge backs in six years. On auto and home I have never dealt with a company that didn't pay in advance. This is where most cancellations come from.
     
    cgreene, Aug 30, 2015
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  6. Gooner
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    Gooner Guru

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    You don't sell enough life insurance them ;)

    That's a joke people, I'm just funnin the guy
     
    Gooner, Aug 30, 2015
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  7. cgreene
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    cgreene Guru

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    No I sell the right kind to the right people that's the difference about 40k in premium a year.
     
    cgreene, Aug 30, 2015
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  8. Gooner
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    I was just joking with you. For a P&C guy $40k a year is good...now multiply that by 6...you get a lot more CB's that way.
     
    Gooner, Aug 30, 2015
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  9. cgreene
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    cgreene Guru

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    I have never gotten paid renewal on life so never been an issue.
     
    cgreene, Aug 30, 2015
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