Life Insurance Commission Split Question?

Sep 19, 2016

  1. AOKING
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    AOKING Super Genius

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    Alabama
    Here is the potential scenario:

    An agent refers another agent to a prospect who wants to fund a whole life contract. The referring agent has discovered that the best fit for what the customer is looking for is a "certain company". The referring agent is not appointed with this "certain company". After looking at the referring agents opinion, the agent he referred the customer to agrees with the reccomendation for this "certain company". The question is.......can the agent who is writing the business comp the licensed agent that referred the business to him/her?

    Thanks,

    AO
     
    AOKING, Sep 19, 2016
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  2. Mox Nox in Rem
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    Mox Nox in Rem New Member

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    Yes you can but you shouldn't.

    The reason is because I've seen this before. Fake clients buying fake policies, paying premiums just to cancel the policy and get back their premiums. You may have gotten paid but if you are going to 1099-MISC your referral and they disappear, you would have to give up your part of the commission due to the charge back and pay out of your pocket for your missing referral's commission as well.

    Best way, make sure that you either really, REALLY trust them OR the referring agent should get appointed. If they get rejected by the carrier, that is something to take note of.

    I hope this helps AO.
     
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