Medicare Advantage Commissions to a Silent Partner

[123insure1900]

Okay, so here is the question:

If commissions are paid out to a partnership that has 2 partners and only one of the partners is taking part in the actual sale of the Medicare Advantage products while the second is a silent partner. Do both partners have to be licensed in the states in which business is written or does only the person who is completing the sale have to be licensed?

One the application is completed by the licensed partner, the commissions will be assigned to the partnership and then distributed to the two partners in equal shares.

Thanks for the help.

 

[bluediamond]

Tricky question with the partnership, but the person you share or split commissions I believe is both suppose to be licensed with that company and have passed the certification. But then again I know someone who does not hold an insurance license, owns a company with someone else being the GA, but also has different corps, don't know if money co mingle's but the non licensed owner certainly draws a salary from somewhere.

 

[123insure1900]

So how does one go about finding these things out for sure?

 

[pahealthquotes]

the silent partner has noting to do with the execution of the sale so why would they need to be licensed?

 

[bluediamond]

The carrier I represent requires that if I split a Med Adv commission it has to be with a licensed agent who also has been certified by the company that was written. I don't know if that's true with others.

 

[Josh]

The carrier I represent requires that if I split a Med Adv commission it has to be with a licensed agent who also has been certified by the company that was written. I don't know if that's true with others.

It's not just the carrier, that's an insurance department and CMS requirement as well. If you're doing a straight per sale commission split, everyone getting paid needs to be licensed and certified.

You're a little fuzzy on the "silent partner", if it's a buddy fronting you money and wanting a piece of the action, they should be licensed. If it's an actual agency and he owns the agency, the commissions can be to the agency which would need to be licensed and certified, but the owners themselves may not need to.