Question for Saleswolf...

[Crabcake Johnny]

Choose wisely. A lot of states have horrible underwriting requirements that result in a lot of cases that can't be written.

If you choose a state, choose a state Assurant's competitive in. They advance directly weekly. Choose states where Assurant:

*Can issue riders
*Can issue condition specific deductibles
*Can rate increase up to 100%
*Offer the healthy discount

Virginia comes to mind as a fantastic state. Also, you can get a cheap non-rez license there.

 

[Newby]

Almost no one can break into this biz with as-earned unless they have a working spouse and a lot of savings.

I have a question. Do you make more with as earned commissions than advanced commissions? Also, how do you personally track as earned commissions to make sure you are getting paid what you should?

I keep a spreadsheet and balance my commission checks against what I am due and even that gets confusing sometimes. I have caught numerous mistakes the insurance companies have made involving THOUSANDS of dollars (always in my favor so far.) I can't imagine keeping up with as earned commissions especially from multiple companies. But I do like the thought of as earned commissions to even out the income and if there is an increase in the amount over advanced commissions.

 

[Crabcake Johnny]

I have found as-earned to be in general, a tracking nightmare. I have four companies that pay me as-earned and all four have been caught be me numerous times not paying me the proper amount.

Aetna, for example, does not sent out broker lapse notices, nor does Carefirst Blue Cross in MD. So if one particular month I'm no longer getting paid on "Ms Smith" and "Mr Johnson" I now have to call them and ask if they dropped coverage. In many cases I hear "absolutely not." Then I have to call the company and ask why I didn't get paid on those cases and I get to hear "Oooops!."

In other cases I have to make sure my approved cases show up on my reports. Again, 1 month turns into two, turns into three and I call: "HEY....plan on paying me for Mr Brown?" Then they "research it" and normally say "Oooops - sorry Mr. Petrowski - it'll be in your next statement." Companies that pay as-earned COUNT on you not to be diligent.

Assurant will advance but send you one notice if the client misses a draft and another notice if the client is about to lapse. You at least know what's going on. GR has lapse reports right on your broker site which is great. Again, you know what's going on.

Advanced commish is easy - AV X commission rate = pay. If it lapses you'll be charged back accordingly - which should happen rarely.

You make the exact same amount with as-earned or the advance. Most people who hate advances got a lot of chargebacks which means they are not selling properly and always had to "sweat" what they were getting each week.

I wish all companies advanced - I'd take an advance with all of them.

 

[somarco]

Newby -

Commission is the same whether advanced or as earned.

Advances are nice but they "own" you until your balance is cleared.

As earned allows you to take a few weeks off without a drop in income.

All my life business is annual premiums so no big deal. I create my own advances.

Health is as earned.

Clean, simple, works very well.

Regardless, you do have to track commissions. Carriers hire very low pay people to handle the menial tasks . . . like premium & commission accounting.

For the most part, I have not had problems with any of my carriers paying the commission I earned. Just takes them a while to get around to it . . .

 

[senior-advisor-indiana]

Newby, sometimes the advances can be less commission than as earned. Not much but an example is...... Some of the companies I write med supps for figure it like this........$100 monthly premium x 20% commission = $20 as earned per month.....or $20 x 11.36 months = $227.20 advance. It should be multiplied by 12 since it is a 12 month advance and the advance should be $240 But they charge a finance charge. Hope thats not confusing.

 

[SME]

I would say that it takes an average of 3 months to get paid on an as earned policy. It is terrible. Can you imagine any other field where you have to wait 3 months to get paid?

 

[BKrocko]

Another example is (one of the contracts I have) - when you take a 7 mth advance - the renewals that you receive after the 7th month go toward paying off your new advances/submits/charge backs - It can take years before you actually see renewal commission. The only way to catch up and receive renewal commission is to stop submitting new business - or have so many mature policies stay on the books that your renewal commission is more than your newly submitted business advance.

You do not get hit right away for any charge backs/lapses (after 4 mths on policy)(should not get charge backs in most cases anyway) but every time you submit a new policy, it just adds to your outstanding balance. They do not charge interest on outstanding balance.

Not the best scenario but the companies that actually advance are far and few between.

 

[WBunch]

Don't get me started on as earned commission ...Blue Cross here in Louisiana pays as earned and they (%#* up very often, never in the agents favor. Their commission statement breaks down every policy you are paid for. For 3mo in a row I was not paid on a policy that my sister took out. So I call the broker service center and ask for the comm dept...."Sorry sir, they do not have a line for people to speak to them, you have to email them at Blah Blah Blah". So I email and email and finally get the response that they never recieved a payment for her. WHAT?? your kidding, i have copies of her bankstatement showing that it came out and if it didn't she wouldnt have coverage, why would she still be active in the system. Finally after 2 more months of fighting and bitching they finally fixed it and haven't had a problem since. Makes you wonder why they don't have a phone number?

 

[Crabcake Johnny]

I have no idea who the suckers were back in the day who put up with as-earned carriers kicking out the 1st check basically when the mood hit 'em but they screwed us all over. The broker community response should be:

1) Low commissions? We won't put a single case with you
2) Months to get paid? We won't put a single case with you

But when these companies are rewarded by actually getting business what's their incentive to change.

 

[STIBROKER]

I have no idea who the suckers were back in the day who put up with as-earned carriers kicking out the 1st check basically when the mood hit 'em but they screwed us all over. The broker community response should be:

1) Low commissions? We won't put a single case with you
2) Months to get paid? We won't put a single case with you

But when these companies are rewarded by actually getting business what's their incentive to change.

1)Low commissions? We won't put a single case with you
client....fine I will buy it from EHEALTH INSURANCE.....

2) Months to get paid? We won't put a single case with you
EHEALTH INSURANCE DON'T CARE....VOLUME RULES......

my clients get what is in their best interest regardless on how or what I get paid.....