New Agent Needs Advice

[ShaunS]

I'm newly licensed in Florida and looking at working as an Independent Health agent/broker. I've heard Health Choice One has good support. Would I need to "assign" my commissions to them, and if not wouldn't that make me captive?
Also, has anyone worked for Healthy America.biz? Their contract states 25% commissions paid to the agent (sub-broker they call it), and require you to assign your commissions to them. They claim that they can pay me more in commissions than I would get going directly through Golden Rule. Their renewals are at 5% (2nd yr), 3%(3rd yr). What is typical to expect as a renewal %?
Can anyone explain the pro and cons of being a "sub-broker", and is this a company's way of cheating us out of our commissions and renewals?
I'm so glad I found this website..thanks all!

 

[Guest]

You shouldn't have to assign your commission to anyone unless you so choose to, like say the agency is advancing you, not the carrier, they (the agency) assumes the risk, not the insurance company.

 

[ShaunS]

So if i choose to work that way with one agency, as a Sub Broker to get the advances, I can also contract independently with another agency for another product or carrier line, is that correct?

 

[jody108]

It's up to the agency.

You have to find out if they are expecting you to stay captive.

Truth is, you can sign on with anyone you want but a captive company or agency will terminate you if they find out.

And they will find out....

So you have to see if they will allow it or not?

 

[ScottHCO]

Shaun,

You will not need to assign commissions with Health Choice One. All 80 of our contracts are "Direct" to the carrier. However, there are a few carriers like Aetna and Golden Rule that do not advance commissions direct to agents. With those carriers, you have a choice of either "Direct, As Earned Commissions" or "Assigned, Advanced Commissions". Call me or Jack to discuss.

:o)

 

[GreenSky]

HCO is a very good choice. Be careful about advances though. Aetna advances cost you 2% and you wind up with a net of 5 months. You can also become so dependent on advances that you almost never can get "caught up."

That being said, Scott will always steer you right and make sure you understand all the commission options.

Rick