? on commission payments

May 6, 2019

  1. lcodilla
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    lcodilla New Member

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    Can someone please define the following when asked about "Advance Term" with regards to commission payments:

    For example:
    3 months on settle
    Or
    3 months on issue

    Does it mean when it says "settle" that the carrier will pay the agent an advance of 3 months of commission upon submitting a policy?

    Likewise, the same goes for "issue" but only when the policy gets issued?

    I was given an option of 3, 6, or 9 months but not sure about whether to pick "settle" or "issue".

    Please help. Thanks in advance!
     
  2. Baseball7
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    Did you ask your upline?
     
  3. Life Hawk
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    Hmm... "Settle" that's a new one for me? Does that refer to "approved"?
     
  4. lcodilla
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    lcodilla New Member

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    I haven't heard back from my upline yet zo I figured and was hoping someone online cN quickly answer.

    That's a good guess, Hawk. Maybe "approved" but not sure.
     
  5. UKTX
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    It means upon their payment being "settled" between the carrier and the issuing bank.

    i.e. When they have paid their premium and the insurance carrier has received it.
     
    UKTX, May 6, 2019
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  6. lcodilla
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    lcodilla New Member

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    Awesome, thank you for your help UK!
     
  7. WinoBlues
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    Pure guess here. Settle may be Approved, issued, premium paid and maybe delivered.

    Issued = Approved, reviewed, printed and ready to mail.
     
  8. WinoBlues
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    Company A may have a different definition than companies B & C
     
  9. lcodilla
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    lcodilla New Member

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    Which is faster pay? (settle or issue) I would assume issue because some customers may change their draft date to a later day in the month after a policy was approved/issued.
     
  10. UKTX
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    Faster would be issue.

    More chargebacks would be issue.
     
    UKTX, May 6, 2019
    #10
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