Received this a couple of days ago. What do you think?
Debit Balances
Dear Forethought Final Expense Agent:
In order to provide you with the money necessary to buy leads, pay expenses, and conduct your everyday business, Forethought Life Insurance Company ("Forethought") provides up to a 12 month commission advance on new business. Forethought advances commission to you based upon the belief that each new policyholder will make regular payments of monthly premiums for the policy sold to them. On the occasion that a policy becomes inactive, the selling agent is charged back for the 12 month commission advance on new business and a debit balance is created. A debit balance occurs when there is an insufficient amount of new business or advance commissions to satisfy the debt caused by a charge back. A debit balance also occurs when premium paying customers do not have adequate funds to start their policies (NSF), or choose, during the first year, to cancel their policies. Under our guidelines, agents are charged back 100% of the advanced commission during the first 12 months. Forethought deducts current charge backs against newly placed advanced commissions to provide you with your debit balance. As a result, debit balances can have an adverse effect on your ability to recognize a full commission advance on future new business. Please log in at www.forethought.com to review your current debit balance and commission statement.
While we have a conservation department assisting in keeping your policyholders active, we have noticed an unfavorable increase in the amount of NSF's on new business. To combat this trend, Forethought will soon be introducing the Commission Protection System (CPS) that will ensure new policyholders have the money to be drafted before advancing commissions to you. The CPS is able to verify whether the funds are available before the agent receives an advance. Our research shows that 90% of all not-takens, or lapses, during the first 30 days are due to the NSF of the initial premium draft. By verifying the availability of funds, agents will see fewer debit balances and better persistency. The CPS is the best way to protect the integrity of our commission advancing system!
Debit Balance Process
For those agents with a debit balance, you will soon be receiving a letter asking for repayment. Our current collection process allows agents 60 days for agents to repay their debit balances. At that time, agents will receive a letter stating they have 10 days to repay the debit balances or Forethought will have no choice but to pursue available collection options, Vector reporting, and all other remedies as Forethought deems necessary. While it is our hope that no agent is engaged in this process, it is important for you to know that Forethought will not tolerate debit balances. It is our hope to have the top final expense company in the industry. We can only accomplish this by having the best final expense agents writing for Forethought...agents like you. Thanks for your understanding and cooperation.
Sincerely,
Forethought Final Expense Team
Debit Balances
Dear Forethought Final Expense Agent:
In order to provide you with the money necessary to buy leads, pay expenses, and conduct your everyday business, Forethought Life Insurance Company ("Forethought") provides up to a 12 month commission advance on new business. Forethought advances commission to you based upon the belief that each new policyholder will make regular payments of monthly premiums for the policy sold to them. On the occasion that a policy becomes inactive, the selling agent is charged back for the 12 month commission advance on new business and a debit balance is created. A debit balance occurs when there is an insufficient amount of new business or advance commissions to satisfy the debt caused by a charge back. A debit balance also occurs when premium paying customers do not have adequate funds to start their policies (NSF), or choose, during the first year, to cancel their policies. Under our guidelines, agents are charged back 100% of the advanced commission during the first 12 months. Forethought deducts current charge backs against newly placed advanced commissions to provide you with your debit balance. As a result, debit balances can have an adverse effect on your ability to recognize a full commission advance on future new business. Please log in at www.forethought.com to review your current debit balance and commission statement.
While we have a conservation department assisting in keeping your policyholders active, we have noticed an unfavorable increase in the amount of NSF's on new business. To combat this trend, Forethought will soon be introducing the Commission Protection System (CPS) that will ensure new policyholders have the money to be drafted before advancing commissions to you. The CPS is able to verify whether the funds are available before the agent receives an advance. Our research shows that 90% of all not-takens, or lapses, during the first 30 days are due to the NSF of the initial premium draft. By verifying the availability of funds, agents will see fewer debit balances and better persistency. The CPS is the best way to protect the integrity of our commission advancing system!
Debit Balance Process
For those agents with a debit balance, you will soon be receiving a letter asking for repayment. Our current collection process allows agents 60 days for agents to repay their debit balances. At that time, agents will receive a letter stating they have 10 days to repay the debit balances or Forethought will have no choice but to pursue available collection options, Vector reporting, and all other remedies as Forethought deems necessary. While it is our hope that no agent is engaged in this process, it is important for you to know that Forethought will not tolerate debit balances. It is our hope to have the top final expense company in the industry. We can only accomplish this by having the best final expense agents writing for Forethought...agents like you. Thanks for your understanding and cooperation.
Sincerely,
Forethought Final Expense Team