Question for Saleswolf...

[somarco]

Barry, you point out something I had forgotten. Last year I signed on with World thru an IMO. I did not want advances but was led to believe that was the only way they did it. I write very little with World so it really was not an issue.

This IMO had two different product lines. One was the street version of World brokerage products, the other was a private label. Seems the street version was not annualized so I became accustomed to receiving a regular monthly check.

Then after about 6 months I slipped up & wrote a private label plan. Got a nice advance. Next month, no check.

Seems they held my as earned checks written on the street product until they equaled an amount sufficient to "pay off" my advance on one policy.

We had some issues.

A few other conflicts and I ended up firing them and moving to another IMO.

Still receive commissions from the old IMO. As earned. That's the way I like it.

 

[Crabcake Johnny]

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.....

You misinterpreted what I meant. What I meant was years and years ago when these companies first issued crap commissions and slow pay the broker community should have put their foot down - this was long before Ehealth and internet sales were around and these companies depended on their sales forces.

Who knows when some Blue Cross is some state issued their plans with 7% commission. At that very point not a single agent should have written a case.

 

[senior-advisor-indiana]

Just like no senior market agent should write for United World with a 15% commission on med supps. Or ANTEX for 13%.

 

[Marc]

Condition Specific Riders

What are some examples you guys have seen with condition specific deductibles at Assurant. I have had riders for kidney stones with them but other than that only healthy applicants. Thanks.

 

[Frank Stastny]

Just like no senior market agent should write for United World with a 15% commission on med supps. Or ANTEX for 13%.

Really? I don't write underage health so I may not know what I'm talking about but isn't the first year commission pretty good while following years it is rather low?

15% is probably only 3 or 4 points less than what most companies pay but the first year commission with Med Supps continues at the first year rate for several years.

If United World has the best price, (the majority of seniors only buy price especially since the coverage is the same with all companies) I will write World all day long for 15% as opposed to writing for a company that pays 18% but who's premiums are 20% higher.

The amount of commission one makes is a mute point if no apps are being written.

 

[policy doctor]

And that is why it's hard to fight the lowered commissions...because most agents sell on price comparison only. So we have helped to commoditize this business.

Now we see the growth of multi=product agencies where they have captive, semi-captive agents sign non-compete contracts, then have them sign up with 10-20 different companies....and pay them low commis but advance money. The lure is...we have leads. Vesting of renewals is after 2-5 yrs....(can you believe).

I went to a mtg for one of these and noticed the large amount of single females, mainly black, who were new to the business or had just left Aflac, or another unhappy situation. The training appeared to be mainly hype, motivation, and the rest up to the newbie. But i digress.

The point is....there is no shortage of the labor force, like wave upon wave of ocean. The attraction of big money (make 100K your first year like Gracie or Derek did) in the insurance...esp selling MA"S....seniors are just waiting for you to come by. Then you can cross-sell.

 

[policy doctor]

Excuse me, my PS here. Just as China is flooding us with their manufactured goods, so are these insurance agencies/co's cranking out new agents all the time. Laws of supply and demand

 

[senior-advisor-indiana]

Frank, I was only referring to med supps. I a, glad I held off on the 15% contract. The only thing that irritates me about 15% is that I found someone to give me 18% for the same company. I would rather write a plan for $90 at 20% commish than a plan at $80 for 15%. I didnt lose sales. If I did it wasn't noticeable.

 

[Frank Stastny]

Excuse me, my PS here. Just as China is flooding us with their manufactured goods, so are these insurance agencies/co's cranking out new agents all the time. Laws of supply and demand

Exactly. The agencies/co's really don't care how many policies an agent writes. They have no money invested in them. All training claims are mostly BS.

They have a line two blocks long of agents waiting to "get rich". If an agent writes two or three apps and leaves then they take the next agent in line and that agent will write a few apps. This cycle is repeated on almost a daily basis.

It is impossible to sell seniors a "better policy" since all plans have to be the same from one company to the next. The only thing left to sell is price.

 

[senior-advisor-indiana]

You can advise them to stay away from a new company that comes out with dirt cheap rates just to buy business if the companies underwriting is awful.