Question about advances

[agent4sail]

I recently read a thread or post that explained why certain contracts with various carriers had different pay outs. I have searched and can't locate the previous source, so I'd like to know:

If I contract with a GA, I can get street advances of 20% with payouts ranging from $500 to $1500 on issued
business....

But if I direct contract with the carrier the contract has a maximum advance payout of $500?

Is there a way to get the higher advances from the carrier?

How is the GA able to offer more advance than the carrier?

I like being direct but that route seems to leave a lot of $$$'s on the table.

 

[myinsurebiz]

Standard is 6 to 12 months advance and 50% to 125% on 1st year commissions.

Any different - give me a buzz . . .

Tom

 

[GreenSky]

I recently read a thread or post that explained why certain contracts with various carriers had different pay outs. I have searched and can't locate the previous source, so I'd like to know:

If I contract with a GA, I can get street advances of 20% with payouts ranging from $500 to $1500 on issued
business....

But if I direct contract with the carrier the contract has a maximum advance payout of $500?

Is there a way to get the higher advances from the carrier?

How is the GA able to offer more advance than the carrier?

I like being direct but that route seems to leave a lot of $$$'s on the table.

Before anyone (even that genius Tom) can answer the question, we need to know what product you're talking about.

Rick

 

[HomeService]

It is possible for some people to get in trouble with advances, sometimes, not always, but it is possible to get in too deep and owe money. It is possible to do that in a lot of other places as well, not just in insurance.

 

[agent4sail]

Rick, I should have added that the products I have been selling have been captive life and health. I am now seeking a secure path to becoming independent. I can survive without advances, although it would be easier with advances.

I would like to know how an independent agent can get a contract with the maximum advance payout from the carrier.
I have talked to several GA's that offer street level contracts 20% and advances on issue of $1500.
The carrier, ( Assurant ) standard contract advances $500.

Can this be raised by the carrier to the same as offered by the GA? How would I get the advance raised to the same payout as that being offered by a GA? Is this payout based on AV production? If so, do you know the required AV for increases in advances?

 

[Crabcake Johnny]

Whoever you contract through with Assurant - be it the RSD, GA or MGA determines your cap on advances. They can cap you at $500, $1,000, $1,500 or $2,000 and it's solely up to them.

You can simply keep shopping for a GA if a particular GA wants to cap you at $500 - simply say "no thank you."

 

[joshril]

Just ask your RSD with Assurant to raise your cap to $2,000... Mine did it without question, and I don't write that much Assurant business.

 

[flauto-insurance]

The GA is fronting you the money as an extra benefit. MAybe he is also providing other benefits... so think 2x befor you decide to screw him...

 

[agent4sail]

Thanks to all who responded. I have talked with a couple of GA's and been told the same thing as what was said here. One GA offered $1500, offered me training on the products, nothing else. The other offered $500 and training on the products, nothing else. I called Assurant and talked with the local RSD. He explained that each company direct contract is a GA contract and the advance was $500 on issued plans. No training other than what is available on the company website. I would like to know if I'm being mislead. My question is: How can one GA offer $500 and another $1500, neither with any perks... and the Carrier RSD tells me the cap is $500. I am confused and looking for answers from a current Assurant GA. It makes no sense to go direct and leave considerable $$$'s on the table, Is there?

 

[joshril]

Thanks to all who responded. I have talked with a couple of GA's and been told the same thing as what was said here. One GA offered $1500, offered me training on the products, nothing else. The other offered $500 and training on the products, nothing else. I called Assurant and talked with the local RSD. He explained that each company direct contract is a GA contract and the advance was $500 on issued plans. No training other than what is available on the company website. I would like to know if I'm being mislead. My question is: How can one GA offer $500 and another $1500, neither with any perks... and the Carrier RSD tells me the cap is $500. I am confused and looking for answers from a current Assurant GA. It makes no sense to go direct and leave considerable $$$'s on the table, Is there?

It's at the discretion of the GA/RSD...