Monumental Comm Question

[TDFnCali]

My Manager is on Vaca so Im asking the pros here...I just got renewal income from Monu as part of my remaining 25% commish. But its only been a few months since the policies began....the rep at Monu said (which I didnt really understand) that I get renewals every month once the policies start. He also said the only reason I didnt get it sooner is because it wasnt over $100.

Im confused, I thought the remaining balance was paid in months 10-12, not right away. Is this standard or just a Monu thing? Can someone explain this to me pls?

Thanks in advance!

 

[rousemark]

My Manager is on Vaca so Im asking the pros here...I just got renewal income from Monu as part of my remaining 25% commish. But its only been a few months since the policies began....the rep at Monu said (which I didnt really understand) that I get renewals every month once the policies start. He also said the only reason I didnt get it sooner is because it wasnt over $100.

Im confused, I thought the remaining balance was paid in months 10-12, not right away. Is this standard or just a Monu thing? Can someone explain this to me pls?

Thanks in advance!

Perhaps Monumental pays as Settlers does. They pay the balance of the "as earned" commission as premiums are paid. For example, if you are on 50% advance, 100% commission you would receive $600.00 advance on a $100.00 monthly premium. Then, each month they would pay you the 50% of the premium that was not advanced Therefore you would get $50.00 each month the premium is paid. The only drawback is it takes a full year to clear the advance. If the policy lapses after paying 7 months you would be charged back the $250.00 unearned advance.

 

[WinoBlues]

Or maybe you are getting an override.

 

[Rearden]

Monumental works like Rouse says -- they pay the back quarter off monthly going forward.

 

[TDFnCali]

Monumental works like Rouse says -- they pay the back quarter off monthly going forward.

Thanks guys, I didnt know that.....any others do that??


And Wino, umm, no I would not be getting an override from anyone, lol!!

 

[TwiLight]

Monumental in its Advance commission addendum for all distribution outlets has an "at it's discretion" clause.

Sometimes, depending on lapse rate, they will take the 'as earned' commissions and apply it to the Advance total balance. They will not calculate based on individual policy activity but rather each advance as a loan. The total of the loans are then reduce by 'as earned' monies and will also include renewals.

This is usually done when leaving one IMO for another and will sometimes apply when an agent has moved around many times.

This is also done as a policy decision by the IMO or distribution channel levels or for excessive lapse ratios.

Problem I have with this policy is that it promotes keeping the agent on Advances instead of weaning them off Advances with As Earned income.

 

[jdeasy]

My Manager is on Vaca so Im asking the pros here...I just got renewal income from Monu as part of my remaining 25% commish. But its only been a few months since the policies began....the rep at Monu said (which I didnt really understand) that I get renewals every month once the policies start. He also said the only reason I didnt get it sooner is because it wasnt over $100.

Im confused, I thought the remaining balance was paid in months 10-12, not right away. Is this standard or just a Monu thing? Can someone explain this to me pls?

Thanks in advance!

It's not renewals it's just set up that way with EFES agents. Maybe with other IMO's as well?

I am as earned with them but always shows two different amounts. In my case I'm at 100% with them. On every case it shows 90% and 10%. It always totals the right commission so I don't care how they account for it.

I asked them at Monumental once why it was like that and they gave a story about it. I don't remember what the story was, but they had a reason. It is definately paying off the back end of my advance because I do not get advanced.

Just another quirk of Monumental. As long as the total is right don't worry about it.
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Monumental in its Advance commission addendum for all distribution outlets has an "at it's discretion" clause.

Sometimes, depending on lapse rate, they will take the 'as earned' commissions and apply it to the Advance total balance. They will not calculate based on individual policy activity but rather each advance as a loan. The total of the loans are then reduce by 'as earned' monies and will also include renewals.

This is usually done when leaving one IMO for another and will sometimes apply when an agent has moved around many times.

This is also done as a policy decision by the IMO or distribution channel levels or for excessive lapse ratios.

Problem I have with this policy is that it promotes keeping the agent on Advances instead of weaning them off Advances with As Earned income.

I don't think Monumental wants agents to be as earned. They make it difficult for agents that are as earned. If you are as earned with them they only pay once a month and only after the client pays. For example, I just got paid today my first month as earned on business I wrote in May.

I don't really care since I chose to be as earned, but they certainly don't give an agent incentive to go as earned. AmAm is the same way. They pay oncea month. I also got paid today on business I wrote in May.

Other that pay daily on advances, like Americo, pays the as earned daily also. AmCon pays twice a week on all business, as earned or advanced.

 

[lsalmans]

It's not renewals it's just set up that way with EFES agents. Maybe with other IMO's as well?

I am as earned with them but always shows two different amounts. In my case I'm at 100% with them. On every case it shows 90% and 10%. It always totals the right commission so I don't care how they account for it.

I asked them at Monumental once why it was like that and they gave a story about it. I don't remember what the story was, but they had a reason. It is definately paying off the back end of my advance because I do not get advanced.

Just another quirk of Monumental. As long as the total is right don't worry about it.
- - - - - - - - - - - - - - - - - -


I don't think Monumental wants agents to be as earned. They make it difficult for agents that are as earned. If you are as earned with them they only pay once a month and only after the client pays. For example, I just got paid today my first month as earned on business I wrote in May.

I don't really care since I chose to be as earned, but they certainly don't give an agent incentive to go as earned. AmAm is the same way. They pay oncea month. I also got paid today on business I wrote in May.

Other that pay daily on advances, like Americo, pays the as earned daily also. AmCon pays twice a week on all business, as earned or advanced.

Im not as earned with Monumental but I could maybe enlighten you on how they pay and it maybe pertains to your situation. They do pay their "25 percenters" right away starting in month 2. So they take the remaining 25% (assuming 75% advance) of your annual premium submitted that was not advanced, and divide by 12 months, then X your commission level. They pay every 2nd of the month. Its a separate cycle from their daily pay.

The 25 percenters are paid on the 2nd of the month for the previous months business. They will not pay you if this amount does not exceed $100, the balance will then roll to next month.

If I had to guess maybe since you wrote it in May maybe it issued in June? or maybe the $100 rule applied to you and they rolled the balance to July.

I actually like the way Monumental pays. I like that it runs on a separate cycle and all at once. I would rather get a check for $1000 at the beginning of the month versus $250 weekly. Its good for the ego.

 

[jdeasy]

Im not as earned with Monumental but I could maybe enlighten you on how they pay and it maybe pertains to your situation. They do pay their "25 percenters" right away starting in month 2. So they take the remaining 25% (assuming 75% advance) of your annual premium submitted that was not advanced, and divide by 12 months, then X your commission level. They pay every 2nd of the month. Its a separate cycle from their daily pay.

The 25 percenters are paid on the 2nd of the month for the previous months business. They will not pay you if this amount does not exceed $100, the balance will then roll to next month.

If I had to guess maybe since you wrote it in May maybe it issued in June? or maybe the $100 rule applied to you and they rolled the balance to July.

I actually like the way Monumental pays. I like that it runs on a separate cycle and all at once. I would rather get a check for $1000 at the beginning of the month versus $250 weekly. Its good for the ego.

There is no 25% when you are as earned. You get paid on the business as it's earned. As for the business I wrote in May, no it was not issued in June but the first payment was in June. Since they only pay as earned once a month I was not paid until July.

The $100 rule has nothing to do with it as they pay all my earned policies at the same time, once a month.

There wasa short period of time when I was on a 25% advance with them. They did not pay the other 75% in monthly installments. They paid it as earned once a month once the initial 3 month advance was recovered.

Monumental's commissions statements are a bear to understand. But, that's not unusual. Most companies seem to try and make them as hard to dicipher as possible.

With EFES if you get advances from Monumental they pay you as soon as the policy is issued not when they receive payment from the client. RNA, Americo and AmAm also do that. Foresters might as well but I'm as earned with them too, so I don't know for sure.

In fact, I'm as earned with every company I have for life and med sups save for RNA. They are the only company I get advanced on and that's only a 6 month advance. I've intending to change that one to as earned as well. Just haven't gottne around to it. I did try to change it to a 3 month advance to wean off advancing but they don't do a 25% advance.

 

[jacobtn]

back when I was writing a lot of Forethought a couple yrs ago, they advanced 12 months (100%). they had a $1,000 cap per policy, but would readvance once the commissions paid back the $1000, as many times as necessary until the full 100% was advanced.

I have always taken advances, don't need them any more, but I know I wouldn't feel the same way about writing a $100 FE app when I'm getting $120-135 vs. $1200-1300 advance. I see the reasoning behind not taking them, but esp. with Monumental I don't like waiting months to get paid.

Foresters does advance without requiring the first draft depending on the IMO. I am with LPR. I would think EFES would have the same arrangement since you stated they do on the other carriers.

There is no 25% when you are as earned. You get paid on the business as it's earned. As for the business I wrote in May, no it was not issued in June but the first payment was in June. Since they only pay as earned once a month I was not paid until July.

The $100 rule has nothing to do with it as they pay all my earned policies at the same time, once a month.

There wasa short period of time when I was on a 25% advance with them. They did not pay the other 75% in monthly installments. They paid it as earned once a month once the initial 3 month advance was recovered.

Monumental's commissions statements are a bear to understand. But, that's not unusual. Most companies seem to try and make them as hard to dicipher as possible.

With EFES if you get advances from Monumental they pay you as soon as the policy is issued not when they receive payment from the client. RNA, Americo and AmAm also do that. Foresters might as well but I'm as earned with them too, so I don't know for sure.

In fact, I'm as earned with every company I have for life and med sups save for RNA. They are the only company I get advanced on and that's only a 6 month advance. I've intending to change that one to as earned as well. Just haven't gottne around to it. I did try to change it to a 3 month advance to wean off advancing but they don't do a 25% advance.