- 7,012
That's what they do. You will be charged back for all unearned advanced immediately.
If you try to flip your own business you will get a double chargeback.
Lincoln Heritage - what is their niche? Are they #1 as they say?
- Thread starter myinsurebiz
- Start date
That's what they do. You will be charged back for all unearned advanced immediately.
If you try to flip your own business you will get a double chargeback.
I am new to this business, what do you mean by "unearned" advance
and what do you mean by if you try to " flip your business"... you mean in the sense that if you go under contract with another carrier they will do a double chargeback to make sure you don't pouch clients.
How do they do it... they send you a bill and you have to pay it.
Or it is just on residual renewals.. which i kinda understand because if you are captive technically the clients are LH's not yours
- 7,012
When you write a policy, you normally receive a 9 month advance. You have now been advanced 9 months of unearned premium. As they make their payment each month, that premium has been earned.
If a client cancels after 2 months, you owe back 7 months of unearned premium. A charge back.
Ex-Lincoln agents are notorious for churning their business. But they shouldn't flip anything less than a year old.
If you had $50,000 in unearned advances, you would be billed for that amount when you are terminated, whether for cause or not.
So even though these clients are still on the books, making their monthly premiums, you will still be billed. Then if you flip that biz, you will get a chargeback and a vector
Thank You for the Explanation, I just got licensed, but haven't moved forward with a contract with anyone yet. In my previous, sales career not in the industry I jumped into signing up way to soon cause I saw the commission. Ended up being a mistake. YOU talk to any MGA's or IMO's they don't tell you anything they just ask for you to sign up. So this Forum has been a learning experience.
I have basically been told, It is a Business for everyone and people who don't look at it like that don't last... And to read every word of the carrier contracts I am signing.
I have basically been told, It is a Business for everyone and people who don't look at it like that don't last... And to read every word of the carrier contracts I am signing.
- 5,943
When you write a policy, you normally receive a 9 month advance. You have now been advanced 9 months of unearned premium. As they make their payment each month, that premium has been earned.
If a client cancels after 2 months, you owe back 7 months of unearned premium. A charge back.
Ex-Lincoln agents are notorious for churning their business. But they shouldn't flip anything less than a year old.
If you had $50,000 in unearned advances, you would be billed for that amount when you are terminated, whether for cause or not.
So even though these clients are still on the books, making their monthly premiums, you will still be billed. Then if you flip that biz, you will get a chargeback and a vector
Wow! Thanks for info on Lincoln... I will stay well enough away.
- 1,410
Well if you don't wanna be a part of the #1 FE company in the universe then that's your choice.
- 6,134
Call HoosierLife and he will shoot you straight.
- 5,943
Well if you don't wanna be a part of the #1 FE company in the universe then that's your choice.
Am I detecting sarcasm in your remark?
Thanks for the Advice.. Off Topic but ever heard of One Life America
- 6,134
Very familiar with One Life America. Do a search on this forum for Parker and Associates and you will learn all you need to know. (They are the same people)
Low comp, generic leads that are old and previously worked, no training, etc.
Much better options can be found on here...
Low comp, generic leads that are old and previously worked, no training, etc.
Much better options can be found on here...
