I have an agent who would like to get appointed with American Amicable however this agent would be a little "credit challenged". Here is what I am dealing with about $23,000.00 worth of bad debt. They have no vector hits nor do they do not owe any insurance companies money.
Getting an Agent Appointed with American Amicable
- Thread starter magagent
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It shouldn't be a problem if they are clear of Vector hits and don't owe any insurance companies money. They may ask for a written explanation of credit, but I doubt it...
I just ate a 18,000 debit from an agent with No vectors that had about 9,000 in debt.
If he cant pay back a loan,,he cant pay back a loan and an advance is a loan.
I guess the company and IMO just dont want to risk having to pay back the loan, if the agent always has show they dont take care of their bills.
If he cant pay back a loan,,he cant pay back a loan and an advance is a loan.
I guess the company and IMO just dont want to risk having to pay back the loan, if the agent always has show they dont take care of their bills.
- 8,707
Couldn't you get the carrier to take them as earned and down the road if they clear up the debt they can try to add the advance agreement...The question was about getting appointed not getting an advance (though I know for many agents no advance is a deal breaker)
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This agent has agreed to take a 3 month advance or an as earned contract.
- 25,037
He will be happer in the long run. In 3-6 months he will have a steadier income that he can count on, mostly.
I think most advanced guys should start dialing it down. Go from 9 months to 6 months then to 3 months. Maybe one contract at a time.
I think most advanced guys should start dialing it down. Go from 9 months to 6 months then to 3 months. Maybe one contract at a time.
Even as earn agents can create a debit balance... We all have to pay the price for the small amount of bad agents.
The bad agent can talk his buddies into doing an annual premium and then tell them to lapse it and keep the as earn check.
IMO's and Ins Companies are getting hit really hard right now. SO you will see tougher contracting now..
SOme companies like Americo require a certain credit score to get contracting.
I know we work with agents, that are willing to start off as earn, and work their way to advancing after writing some good business.
The bad agent can talk his buddies into doing an annual premium and then tell them to lapse it and keep the as earn check.
IMO's and Ins Companies are getting hit really hard right now. SO you will see tougher contracting now..
SOme companies like Americo require a certain credit score to get contracting.
I know we work with agents, that are willing to start off as earn, and work their way to advancing after writing some good business.
- 8,707
Oh I'm sure you can run into these types of agents being an IMO, I would never have thought of doing something like that to me it stinks of fraud...how the insurance co could prove it I'll never know.
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What do you mean Mark? If the buddy pays for the entire year up front, how can he lapse it and get a charge back? Tell me if I am lost here. Scratching my head trying to figure this one out. Maybe I'm having a blond moment.
Unless the have their buddies cancel the policy during the free look period and keep the as earned check. Is that what you meant?
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Someone can pay an annual premium, agent gets his annual commission, insured drops policy in second month and asks for return of unearned premium. I know a guy that did this to 5 or 6 GA's, I even warned 2 of them it would happen to them, oh well.
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