Going As-Earned?

[VaDwayne]

I want to do something that I have absolutely no experience with and I am not sure how much work it is or what the process is to do it. I would call the carriers next week, but I am snowed in and would like to get started on it today while I am doing nothing.

I would like to switch all of my contracts from an advanced to as-earned basis but I have never done it. I guess the questions I have are these:

1. Does it take a completely new contract or some type of addendum?

2. Do you immediately go as-earned, even with the companies that you have 1000's of dollars of advances with. It doesn't seem like that would even matter as I know the renewals are as-earned anyway.

Thanks in advance for your help.

 

[360]

Should be a simple phone call to most carriers.

 

[souldeux]

1. Just call the commission departments and tell them you want to switch to as-earned. Some will require an email or faxed letter (to have the request in writing).

2. It depends on the company. Some will require that your existing debit balance is cleared before they begin paying out as-earned comp. Generally, if your renewals don't go into a debit account, then this won't be an issue.

 

[HarryRenard]

If you change it now, it just means all NEW business is paid as earned, it should not have any bearing on old advances.
The advances will be paid down monthly by the premiums same as they are now.

I would just write a quick letter explaining what you want fax it to attention commissions, and follow up later that day with a phone call if you wish.

 

[VaDwayne]

Thanks a lot!!

 

[jdeasy]

I want to do something that I have absolutely no experience with and I am not sure how much work it is or what the process is to do it. I would call the carriers next week, but I am snowed in and would like to get started on it today while I am doing nothing.

I would like to switch all of my contracts from an advanced to as-earned basis but I have never done it. I guess the questions I have are these:

1. Does it take a completely new contract or some type of addendum?

2. Do you immediately go as-earned, even with the companies that you have 1000's of dollars of advances with. It doesn't seem like that would even matter as I know the renewals are as-earned anyway.

Thanks in advance for your help.

I've changed almost all of mine to as earned. All it it took was a phone call in most instances. I believe a couple of companies required a fax.

It's a lot more trouble to go back to getting advances if you change your mind, but, still doable.