I Finally Went As Earned with a Carrier

[WinoBlues]

So they help the agent manage his own money's

Sounds like some politicians view of the world we should live in. Not that -they- should live in, just us.

 

[Grindallday]

They don't charge interest on the as earned. They do charge appointment fees. As earned or advanced.

Trans only pays the as earned once a month. That kinda sucks but that's how it is.

I'm as earned with them. I just wrote a couple last week. They will make their first payment on April 3. I wouldn't be paid on them until the the first Tuesday in May.

You would think companies would reward their as earned agents. But they don't see it that way.

Settlers and SNL also only pay the as earned agents once a month.

thanks for clearing that up for me. how much interest do they charge on advances anyway? being that portions of that advance start getting paid back immediately as premiums come in is there anyway to calculate how much the interest actually is? like is it a flat interest fee for each advance or is it % interest on all advances each month like how a credit card would be kind of. has anyone ever figured out for every 100grand in commission annually how much interest would be paid in that year with a 75% advance?

 

[jdeasy]

thanks for clearing that up for me. how much interest do they charge on advances anyway? being that portions of that advance start getting paid back immediately as premiums come in is there anyway to calculate how much the interest actually is? like is it a flat interest fee for each advance or is it % interest on all advances each month like how a credit card would be kind of. has anyone ever figured out for every 100grand in commission annually how much interest would be paid in that year with a 75% advance?

I'm not sure what they charge for an interest rate. Most companies that charge interest charge 1% per month.

They would charge interest on the balance of the advance each month.

 

[Grindallday]

I'm not sure what they charge for an interest rate. Most companies that charge interest charge 1% per month.

They would charge interest on the balance of the advance each month.

man this is gonna kill my ocd not knowing the exact answer to this and im simply too lasy to figure out the math right now. but basically when you have set up on advance. if the rate is 1% a month on the advance. its like taking a 5% cut on your fyc. thats not huge but huge enough to do something about it.
now twighlight was illuding to transamerica not being as big of a deal when going as earned im assuming compared to other companies. is there a reason for that? is trans one of the lowest interest rates charged.
besides the chargeback burn i can see the benefit now of at least working toward a 3 month advance.

 

[jdeasy]

man this is gonna kill my ocd not knowing the exact answer to this and im simply too lasy to figure out the math right now. but basically when you have set up on advance. if the rate is 1% a month on the advance. its like taking a 5% cut on your fyc. thats not huge but huge enough to do something about it.
now twighlight was illuding to transamerica not being as big of a deal when going as earned im assuming compared to other companies. is there a reason for that? is trans one of the lowest interest rates charged.
besides the chargeback burn i can see the benefit now of at least working toward a 3 month advance.

Even with a 3 month advance they would charge interest. Then the way they pay the balance also puts you in kind of the same spot with them. If you get advanced 3 months with them then they divide the other 9 months by 12 and pay that to you each month. I don't know if they charge interest on that part or not.

They hide the interest charges by putting it under "service fees" or something like that.

If you go as earned with them they only pay once a month. Like I said earlier. I wrote a couple of Trans 2 weeks ago. I'm delivering those policies tomorrow. They are in force but their first draft won't be until April 3.

That means I won't see a dime of commission on those 2 until the first Tues in May.

Doesn't bother me as I'm as earned with almost everyone. But you need to be aware of that if considering going as earned.

I know AmCon charges interest on advances. Those are the only two FE companies I know of that charge interest on advances. There could be more?

 

[onefastpony]

Would it be advisable for an agent when they want to go as earned to just do it with one carrier at a time and even then just back off their advance with that carrier until all carriers are as earned? Kind of like weaning off of the advances?

If I were to go as earned now it would kill me when I get a chargeback since the as earned would go to the chargeback.

 

[jdeasy]

Would it be advisable for an agent when they want to go as earned to just do it with one carrier at a time and even then just back off their advance with that carrier until all carriers are as earned? Kind of like weaning off of the advances?

If I were to go as earned now it would kill me when I get a chargeback since the as earned would go to the chargeback.

That's what I did. Moved to 6 month advances and then 3 month. I've still got one company on a 3 month and I think I'll leave it there just for the mental aspect of it.

I would get as earned as soon as possible on the ones that charge interest.

 

[liorselamb]

Even with a 3 month advance they would charge interest. Then the way they pay the balance also puts you in kind of the same spot with them. If you get advanced 3 months with them then they divide the other 9 months by 12 and pay that to you each month. I don't know if they charge interest on that part or not. They hide the interest charges by putting it under "service fees" or something like that. If you go as earned with them they only pay once a month. Like I said earlier. I wrote a couple of Trans 2 weeks ago. I'm delivering those policies tomorrow. They are in force but their first draft won't be until April 3. That means I won't see a dime of commission on those 2 until the first Tues in May. Doesn't bother me as I'm as earned with almost everyone. But you need to be aware of that if considering going as earned. I know AmCon charges interest on advances. Those are the only two FE companies I know of that charge interest on advances. There could be more?

Equitable charges interest on advanced commission as well (Med Supp & FE)