Life Insurance Commission Split Question?

Sep 19, 2016

  1. AOKING
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    AOKING Super Genius

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    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 recommendation 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. aclaro
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    aclaro Super Genius

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    Yes. You just cut them a check and then 1099 them at the end of the year. I get them to fill out a w9 and get a copy of a valid life license.

    Since I'm curious, why not just get appointed with the company the agent is writing?
     
    aclaro, Sep 19, 2016
    #2
  3. marindependent
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    marindependent Guru

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    I am not a lawyer but I would go with Yes as long as the following are met:
    Both Agents are licensed
    Both Agents hold E and O
    Both Agents actually assisted the client
    Both Agents agreed to some sort of split
    It is Legal in the jurisdiction in which you do it
    And there is no contractual clause that forbids this
     
  4. paytoplay
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    paytoplay New Member

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    Be careful. If something goes wrong (bank draft doesn't go through, credit card payment disputed, client surrenders after 3 months) and commissions are reversed, you will be left holding the bag.
     
  5. Tahoe Ray
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    Tahoe Ray Guru

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    Agree with this...as earned only on these deals.
     
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