The GA commission on the GI is an odd amount.. 67.45% on bank draft with 15% years 2-4, then drops to 9%...I would think 60/15 is a fair amount for a down-line. Most IMOs and GAs keep a larger override than than that.
The commission is a little higher if an agent writing the GI on the MDO mode (71.25% first year and 20.50%) renewal for the life of the policy because the modal premium is higher to cover the higher commission. I have never written an MDO even though I have an account set up for it simply because I don't want to collect premiums.
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Going back to what JD was saying about the check not being received by the company. Columbian has a system on faxed applications I have never seen with another company.. If you collect a check at the time of application (they will draft first premium if requested) the client signs a form authorizing a faxed check. Then when you fax the application, you simply fax the check and the company does an EFT for it. Perhpas the agent did not fax the check in for some reason? I don't know how he would gain by that but then I am not smart enough to be a criminal.. If a GA has an MDO account, he can deposit checks made payable to the company into the account but that wouldn't be the case with JD's scenario since they said the policy was issued on bank draft.
Of the business I have written with them, I have only written one FE plan (becasue of underwriting reasons). The others have been their ordinary series. I have a great Regional Manager and I have found the company very easy to deal with.
As for the "crooks" you find them in every company and they seem to flock together within certain agencies. The ones I used to have problems with several years ago were a couple of agents with Royal Neighbors.. You would not believe how far they stretched the "guaranteed" fraternal benefits. Some were telling people that if their children did not use the scholarship grants for school, it would be paid to them in cash.
