GR 2011 Commission Going Live Today

[bill3173]

Kind of surprised that nobody posted this, but I was told told today that the commission schedule for 2011: 1-49 apps 10/4, 49-99 12/4, 100+ 14/4.

I haven't seen it in writing yet, anybody hear anything different? You gonna stay in the biz?

 

[Crabcake Johnny]

Waiting to see it in writing - but 12/4 for 49-99 keeps independent agents in business. Pay cut? Sure. In business? Yes.

My last full year of indie sales was 720K. That would translate to 86K. That's obviously with no marketing.

If it cost $80 to gain a client and average premium was 3K that's 240 cases which is 20K in marketing costs. So my net would have been 66K.

Would I have worked for 66K at home, no boss? Better bet your a**. With some modest cross selling you can kick that up another 15K.

 

[somarco]

On the phone now with my rep. Not real impressed with what he is telling me about comp.

 

[Crabcake Johnny]

And he's telling you.....

 

[somarco]

Same as above.

Graduated commission based on production. 1 - 49 apps pay 10% FYC, 4% (of FYP) yrs 2 - 3, 2% (of FYP) thereafter.

He has no specifics, but says with bonuses for production you can boost it to 41% FYC and bonus.

I will believe that when I see it.

Nothing in stone yet. Got to wait on legal.

New plans, rates for GA coming 1/1/11. No details on them either.

They are so far out of the market now they would have to cut rates by 20% just to get in the hunt and in some cases 30%. I don't see that happening.

Coming to town end of the month.

 

[HealthGuy]

Yawn....the only agents that sell this much GR are usually the ones who care nothing about underwriting. Because, virtually everywhere GR riders everything...So writing a lot of GR usually means (honestly) you are probably a B.S. agent.
Who the hell writes a lot of Golden Rule anyway?

 

[somarco]

I still write GR from time to time because they rider. Often it is the only way to find coverage, or at least affordable coverage for a client.

 

[HealthGuy]

Somarco: I do as well, but the superstar GR agents - most of them - are scumbags...They could give a s#@$t about all the riders, and their victims are even lucky if they tell them the policies are issued with a rider. I know personally agents that tear off GR rider pages before they mail them to clients. Because GR issues policies the way they do, the rider pages can be pulled off and the public buying the GR policy may never know about the riders...IT HAPPENS ALL THE TIME. Its hard for me to write even 3 GR deals per month because of their retarded underwriting...Anybody doing mass volume, I tell you - 8 times out of 10 isn't mentioning the underwriting process or riders, they are just taking applications...Take this truth to the bank. So most of the agents going forward selling massive amounts of GR are going to be the same - bad health agents.

 

[dgoldenz]

Looks like I'll be selling a lot more life insurance and a lot less health insurance next year. 10% with hard to place cases and riders? Get real...at least if Anthem paid me 10% they make my life easy on underwriting and pre-ex. They're still at 15% too, no reduction announced.

 

[Crabcake Johnny]

Question is, if it's 14% for 100+ which is the qualifier to get a key broker contract, I wonder what they'll be paying their key brokers.

I also think it's safe to say that if GR going with 10% through 14%, that's what you can expect to see industry wide with few exceptions.