Question About Comission Payment After I Leave an Agency

[The new kid]

Hello, I'm fairly new around here. I've browsed for a while, but never really posted.

My situation is this...I recently left a small agency to relocate to another, much larger agency. I was a producer working on a salary, plus a 70/30 commission split.

Commissions always ran about a month behind from when the agency got paid by the carrier.

So I got my statement on 8/3 for the month of July. My last day was in the middle of August.

I expected that my commission check would be mailed at the end of August, but here it is now Sept. 9th and still no payment to me.


All this business was paid and hit the agency books, while I was employed, so I should be paid this money right? Not to mention, there was also business I wrote in August that I should be paid on since my last day wasn't until August 14th.

Anybody have any advice on how to handle this? I've reached out to the agency owner and haven't heard back yet. I'm guessing they are just hoping I forgot about it or will just go away.

The sad part on my end is that I never got a copy of the salary & 70/30 split agreement we had, but I do have a copy of my producer report that shows the commissions due to me, that they gave to me on 8/3/15.

Is this unreasonable to expect to be paid for the business I brought in during the time I was employed there?

 

[insurance1822]

Yes - of course you should be paid on that business you wrote while you were still employed. I'm not sure if it will go anywhere though unless you take them to small claims court (which doesn't cost much at all.)

What happens for business you placed while working, but the agency wasn't paid until the next month when you were no longer there? Well...I would pay the producer BUT again...not sure how that's going to play out.

Again - small claims court.

Try to talk w/ the agency owner.

 

[Dweezil]

If you have an employment agreement take a look at that. I know in my current position if I leave before a commision is earned I forfeit it. This is in construction sales it can take some time between when an order is placed and when the commission is earned.

 

[The new kid]

I do not have a copy of my employment agreement, just my production reports.

I would think that once the agency has been paid, it's only fair to pay me as well.

I should mention too that this is a family friend who I worked for. I would hate to think that he's interested in screwing me out of commission's that I rightfully earned.

I thought that maybe he was holding on to them to cover any charge backs that might occur from me leaving and taking business with me.

Regardless, I think I am owed an explanation.

 

[stex]

One possibility is the commission for the policies you wrote are not fully earned. What if the insured cancel the policy mid-term? The agency will have to return the commission, but will they be able to get it back from you?

 

[bobson]

One possibility is the commission for the policies you wrote are not fully earned. What if the insured cancel the policy mid-term? The agency will have to return the commission, but will they be able to get it back from you?

No such thing as fully earned commission in the P&C world unless the premium is fully earned (which is rare).

 

[stex]

You're right. That's why the agency might not want to pay an former producer commission on policies just written right away.

 

[The new kid]

Still no answer on this from the agency owner.

2 emails and a phone call haven't been enough to get an answer, looks like I need to start being a bit more persistent.

 

[insurancemansam]

If you terminated agency agreement, I would not expect to get paid.

 

[agentinsouth]

Hello, I'm fairly new around here. I've browsed for a while, but never really posted. My situation is this...I recently left a small agency to relocate to another, much larger agency. I was a producer working on a salary, plus a 70/30 commission split. Commissions always ran about a month behind from when the agency got paid by the carrier. So I got my statement on 8/3 for the month of July. My last day was in the middle of August. I expected that my commission check would be mailed at the end of August, but here it is now Sept. 9th and still no payment to me. All this business was paid and hit the agency books, while I was employed, so I should be paid this money right? Not to mention, there was also business I wrote in August that I should be paid on since my last day wasn't until August 14th. Anybody have any advice on how to handle this? I've reached out to the agency owner and haven't heard back yet. I'm guessing they are just hoping I forgot about it or will just go away. The sad part on my end is that I never got a copy of the salary & 70/30 split agreement we had, but I do have a copy of my producer report that shows the commissions due to me, that they gave to me on 8/3/15. Is this unreasonable to expect to be paid for the business I brought in during the time I was employed there?

It is very common for an agency to wait for charge backs, cancelations, and unearned advance commissions.