Below is the Great Western return of commission guidelines. My question is the way it reads, says if the policy ever lapses, the agent must pay back 100% of the commission. Can anyone who is contracted with Great Western tell me if this is correct? I am just reading it word for word. And the way it is written, the agent must pay back all commission if the policy every lapses? Even if the policy has been in force for years?This is what it says but it does not make sense. Any guidance would be appreciated as I am considering getting contracted with them for the GI product only.
"RETURN OF PREMIUMS AND COMMISSIONS Agent shall be obligated to return to GWIC 100% of the commission paid to it by GWIC (regardless, in the case of an Agent that has paid a Subagent, of the Agent's ability to recover commission payments from the Subagents) for a policy if: the insured dies within the first nine (9) months following issuance; the insured dies by suicide at any time during the suicide exclusion time period; the policy lapses, is canceled or surrendered by the insured during the first three months of coverage; the policy is rescinded at any time; GWIC is required to refund premiums by reason of fraud, malfeasance, or omission of any kind by the Agent or its subagents at any time. If there is a reduction in policy coverage during the first year, GWIC will pay commission on the reduced coverage as if originally issued for that reduced amount."
"RETURN OF PREMIUMS AND COMMISSIONS Agent shall be obligated to return to GWIC 100% of the commission paid to it by GWIC (regardless, in the case of an Agent that has paid a Subagent, of the Agent's ability to recover commission payments from the Subagents) for a policy if: the insured dies within the first nine (9) months following issuance; the insured dies by suicide at any time during the suicide exclusion time period; the policy lapses, is canceled or surrendered by the insured during the first three months of coverage; the policy is rescinded at any time; GWIC is required to refund premiums by reason of fraud, malfeasance, or omission of any kind by the Agent or its subagents at any time. If there is a reduction in policy coverage during the first year, GWIC will pay commission on the reduced coverage as if originally issued for that reduced amount."
