Question About an Offer I Received

[jlvaldesjr]

I was offered a position to work with an agency that will pay from my license and they also provide leads from people that sent in a request for information card regarding life insurance and mortgage protection.

They mentioned that I would receive 35% commission but non of the renewals. The commission would go up as I reached certain sales levels.

I have no cost for the office or E/O insurance.

In my opinion this seems like a good opportunity for someone new getting started like myself.

They did mention that have 6 to 8 months we could re-evaluate how I am doing and provide a better commission structure as needed.

Any thoughts? Thanks!

 

[Air Jer]

My agency gives me 90% of life insurance commissions the first year and keeps the renewal commission after that. I don't know if that is good or bad but I throw it out for thought. I spend all of my time on P &C so I haven't had the benefit of this split.

 

[Philly]

If you don't mind me asking what commission split do you get on business insurance? Mine is 35/65 with me getting 35% thinking this is low? thanks

 

[Josh]

My agency gives me 90% of life insurance commissions the first year and keeps the renewal commission after that. I don't know if that is good or bad but I throw it out for thought. I spend all of my time on P &C so I haven't had the benefit of this split.

P&C shops and life shops are completely different animals. True life shops (these days) don't bother with P&C and P&C shops that do life usually do it as an after thought. It takes an entirely different breed of agent to effectively generate life insurance business than it does to do P&C, so that may very well be why the split you're talking about is the way it is.
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I was offered a position to work with an agency that will pay from my license and they also provide leads from people that sent in a request for information card regarding life insurance and mortgage protection.

They mentioned that I would receive 35% commission but non of the renewals. The commission would go up as I reached certain sales levels.

I have no cost for the office or E/O insurance.

In my opinion this seems like a good opportunity for someone new getting started like myself.

They did mention that have 6 to 8 months we could re-evaluate how I am doing and provide a better commission structure as needed.

Any thoughts? Thanks!

What was the name of the operation and what lines do they offer? It's probably not a bad way to get licensed and learn about the industry, but most people won't last more than 6 months if that. Even with the cost of the license included, 35% does seem more than a little low unless they are offering a base along with it.

 

[jlvaldesjr]

They do not offer a base. They provide leads that are from direct response letters sent.

They also do not charge for the use of the office or any literature that is needed.

They do cover the E&O insurance as well. What is the normal commission for a life insurance agent?

Thanks,

 

[Frank Stastny]

It doesn't sound like you will be the Agent of Record. If not I would not sign that kind of contract. You may want to specifically ask that question.

 

[jlvaldesjr]

Forgive my ignorance, but what does it mean to be the Agent of Record?

 

[briko3]

It means that your the agent on file with the company. You'll be the one that gets the copies of letters that are sent to them, etc. and you're the agent listed on those letters. As far as the company is concerned, you're the person to contact regarding that person. It's the exact opposite if you're not the AOR.

 

[Frank Stastny]

Forgive my ignorance, but what does it mean to be the Agent of Record?

Insurance companies only pay the agent of record the commission and renewal monies earned. If you are not the agent of record, even though you wrote the application, the checks are not sent to you. You have to rely and trust on the agency to write you a check for the apps you have written.

Furthermore, when you leave the agency you will leave with zero income. They will not continue to pay you your renewals if you no longer work there.

As I said, I would never sign a contract like that.

 

[Josh]

Who is the company?