I am a newly licensed life and health agent in Tn. I am looking to sell primarily life insurance while building a book with Medicare supplements. I have formed an LLC to do business with but have some questions about contracting. First does my llc need to be contracted as an agency with the carriers and then myself separately? What are the Tn state fees for contracting as an agency? (I could only find info on agents) I already have a source for the contracts so I’m not looking to sign up with an fmo or imo. Any info would be greatly appreciated!
New agency getting carrier contracts
- Thread starter Jonathon
- Start date
- 16,881
This is the very basic stuff that your “source for the contracts” is supposed to be helping you with. But yes you license your agency and you under the agency.
If you want all commissions on your own sales to be paid to the agency you license yourself as an LOA (license only agent). If you want your sales to be paid directly to you (attached to your social security number) and only the over ride paid to your agency (attached to your (business tax ID) you license both with commission schedules.
The fees for any state for against and agencies are found at NIPR.com
Newby....I read a lot of your posts, really helpful, thanks, follow up Qs, pls....I'm a new Indiv licensee and also have an Agency license for my new LLC (I'm the DLP for the LLC, which has an EIN). If I have a Carrier pay the LLC (an not me as the Producer, I'll be LOA), will that typically have an agency override as a sep payment to the Agency. Or do I forgo that override if I essentially assign my Indiv commissions to my Agency?
One more pls, if I choose to/can contract directly with UHC, for example, do overrides exist in my scenario or are they reserved for FMO/NMO/etc? I'm fine with FMO, etc, just trying to discern if direct is equal/better/worse on this on attribute. I apprec any / all comments. Thanks, Jeff (in VA, initially)
One more pls, if I choose to/can contract directly with UHC, for example, do overrides exist in my scenario or are they reserved for FMO/NMO/etc? I'm fine with FMO, etc, just trying to discern if direct is equal/better/worse on this on attribute. I apprec any / all comments. Thanks, Jeff (in VA, initially)
- 16,881
If you don’t have production history your agency will be at the same contract levels as any beginning agent. You have to generally go through an FMO and leverage your production over the past year or to to earn higher contracts than a new agent would normally get. Going direct to carriers will usually result in lower commission levels than an FMO with give you.
That being said there are quite a few agency’s/FMOs that will try to contract you at lower than normal commission levels. You can call me anytime if you want to discuss specific questions. But it sounds like you are just getting started from your questions. You want to make sure you are getting high agent levels at that point. With Final Expense that’s easy to pinpoint at 120% for most companies. Med Sups will vary but usually in the ballpark of 21% to 22%. Med Advantage has its own structure.
My contact info is on the FexContracting website. You can always call and I can point you in the right direction and help you understand the industry.
Similar threads
