STAY AWAY from Equitable Life Medicare Supplement

glazarev

Expert
35
STAY AWAY from Equitable!

They have the following clause in their contract "In the event the renewal-service commission compensation payable to General Agent falls below $300 for any six consecutive month period, it will be the option of the Company, in its sole discretion, to make renewal-service commission compensation NONPAYABLE to the General Agent”.

In other words, having 2-3 clients will not protect you. Not only will they terminate your contract (and I’ll understand it), they will also STEAL your commissions.

I was a victim of that rule. I think it is plainly illegal, but don’t have a time fight for it. To the best of my knowledge, Equitable is the ONLY company in the Medicare Supplement business who does it. Make your own conclusions…
 
$300 over 6 months is $50 bucks a month commission. Quite a few carriers will cancel your contract and stop paying commissions if your earnings drop below $600 per year. Had that happen to me a few years ago when money was tight.

I got over it.

You will too.

The solution is to write more business. At least enough to generate $50/month in commission. Then you can stop sending them business if you want.
 
$300 over 6 months is $50 bucks a month commission. Quite a few carriers will cancel your contract and stop paying commissions if your earnings drop below $600 per year. Had that happen to me a few years ago when money was tight.

I got over it.

You will too.

The solution is to write more business. At least enough to generate $50/month in commission. Then you can stop sending them business if you want.

Family Life has that $600 year rule. But they are still paying me and I don't make $600/yr with them.
 
Whay about that being in the contract would be illegal? Production requirements are fairly common
 
Nearly every company I write for has $600 minimum annual commissions. So if I stop producing and they terminate me do to lack of production I lose my renewals equal to or less than $600. I think it's because anything above $600 they have to send out a 1099.

I got lots of business with equitable. It's really not worth losing sleep over, every company I write for ( that I know of) has a similar clause.
 
Family Life has that $600 year rule. But they are still paying me and I don't make $600/yr with them.

They are paying me too. $19 and change every month.

As the OP stated, the "rule" is at their discretion.
 
While many companies have different thresholds at which time they discontinue paying renewal commissions after termination, Colombian uses number of policies on their FE which is separate from the other products. The contract states you have to have 20 polices in force in order to continue to receive commissions... If your average premium is $50 per month, then as soon as you drop below $12,000 in annual premium, your commissions stop.. That is the primary reason I do not write FE with them... It is one thing for Settlers to say they quite paying after commissions drop below $180 per year and another thing when they could stop paying you when your commissions could be well over $1000 per year.
 
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