Duford Insurance Group vs. Digital BGA for Final Expense Telesales

[Newby]

Got it WinoBlues. Thanks.When the agent leaves though-why don't you just write into the contract that they forfeit the back of the year pay to make up for any chargebacks. So they keep the 9 months up front but don't get the other 3 months. Then everything balances out-no? Also..I am not smart enough to understand contract law but the way someone explained it to me-that isn't legally binding for the insurance carrier to make you the person who is the defacto debtor if the agent doesn't pony up because that is making someone a co-signer after the fact. They would have to cancel the first contract 1st.- as I have been told

Agents that have a solid book of business are not the ones leaving an agency. It's almost always unstable agents. Plus, all it is saying is if YOU the agent runs up debts (which is money you got paid and put in your pocket or spent) you have to pay it back promptly (not sit around waiting for 9-months like the recruiter from fantasyland told you) or the new Upline is agreeing to pay it out of his pocket and then HE has to sue you to try to get his money back not dump it on the IMO that was nice enough to release you 6-months early against the insurance company's preference and better judgement.
There are IMOs that screw over agents. But there are agents that screw over IMOs. Releasing agents is something us nice ones do to try to be fair and not hold people up if their plans change. But believe me, it's a thankless act that can screw us over hard. We have to protect ourselves as best as we can.
And I didn't understand the last part of your post. But if you don't think your Upline is your co-signer on all the money the insurance companies have paid you, then you don't understand how it all works yet.

 

[CLTX]

The last part of my post doesn't matter really since the insurance company says it's legal. Then it is for practical purposes. I get your perspective but..it's just strange because so much of this business is future earnings, If someone has a store and there is an employee who steals, the store owner would not then make all employees who leave to work elsewhere, get the next store they go to, to be responsible for his missing inventory. I would think that it is still possible to create a contract where the agent who leaves has to forfeit their last 3 months of pay on all of their business and then you would-maybe not always, but for the most part, be square. You ask agents to sign up to only receive 9 months commission up front and they get the last 3 months if and only if, they are still with you. That way they are cashing out with all the accounting reconciled before they leave and then they don't have to get the other agency involved. Am I not seeing something correctly?

 

[Newby]

The last part of my post doesn't matter really since the insurance company says it's legal. Then it is for practical purposes. I get your perspective but..it's just strange because so much of this business is future earnings, If someone has a store and there is an employee who steals, the store owner would not then make all employees who leave to work elsewhere, get the next store they go to, to be responsible for his missing inventory. I would think that it is still possible to create a contract where the agent who leaves has to forfeit their last 3 months of pay on all of their business and then you would-maybe not always, but for the most part, be square. You ask agents to sign up to only receive 9 months commission up front and they get the last 3 months if and only if, they are still with you. That way they are cashing out with all the accounting reconciled before they leave and then they don't have to get the other agency involved. Am I not seeing something correctly?

You have been painted a fairy-dust image of the last three months covering chargebacks. First, when there are chargebacks, there won't be any last three months. But when agents bounce around a high percentage of them are fail outs. They don't have enough good business ever cover the chargebacks from their bad business. And once they leave you, they get desperate and go out and flip the few good cases that they even had. If they're going to a shady IMO which they often are they'll actually encourage them to do that.

As a general rule, your good solid agents that are making good money are not the ones that want to get a release and try something else. There are exceptions. But they are the exceptions not the normal. And I have everyone sign the exact same paperwork on the way out. In fact, I would have my own mother sign the exact same thing. There's absolutely nothing wrong with it and it gives the nice guy doing the release just a little bit of extra protection.

 

[walthamny]

Cltx, also guaranteed issue products have a charge back of 2 years from the issue date. So you could have received all the commissions in year 1 and then in year 2 death occurs and the insurance company wants all the commissions back. THere is no perfect system to account for chargebacks, protect the insurance company and the IMO. As a new agent, you need cashflow. Advanced commissions on unearned business is the way the industry works. You get paid first before actually earning the commission.

 

[Newby]

Cltx, also guaranteed issue products have a charge back of 2 years from the issue date. So you could have received all the commissions in year 1 and then in year 2 death occurs and the insurance company wants all the commissions back. THere is no perfect system to account for chargebacks, protect the insurance company and the IMO. As a new agent, you need cashflow. Advanced commissions on unearned business is the way the industry works. You get paid first before actually earning the commission.

That's not just GI biz. ALL life insurance policies have a 2-year chargeback exposure if the policy is recinded which is not uncommon if there is a death in the 1st two years.

 

[WinoBlues]

a contract where the agent who leaves has to forfeit their last 3 months of pay

As an agent, for more than a minute, that would be a Hell No! That could easily equal thousands of dollars given up for something that probably won't happen or that equals hundreds.

Cltx, also guaranteed issue products have a charge back of 2 years from the issue date

Yup!, Just got my second Gerber claim in the last month. 1st one is several years old so other than having to chase Gerber it has zero cost to me. The second was just last week and Gerber has already sent me a notice that I will owe 100% of the comp back. The guy is not even in the ground yet.

 

[CLTX]

I understand. JRoot if you are still on here can you get my # from Nic and call me? I owe you an apology but something did happen-not with your company- that I can't go into on here and I wanted to put it into context please.

 

[rousemark]

I understand. JRoot if you are still on here can you get my # from Nic and call me? I owe you an apology but something did happen-not with your company- that I can't go into on here and I wanted to put it into context please.

You can send him a private message that no one else can see through the forum. Click on his user name and the click on "start conversation" in the pop up box.

 

[WinoBlues]

I understand. JRoot if you are still on here can you get my # from Nic and call me? I owe you an apology but something did happen-not with your company- that I can't go into on here and I wanted to put it into context please.

I believe he said he was meeting with / at NorthStar. Go up to him and talk.

 

[CLTX]

You can send him a private message that no one else can see through the forum. Click on his user name and the click on "start conversation" in the pop up box.

okay- thanks