This Might Be a Stupid Question but Asking Anyway

insurancemet

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I'm wondering if you are captive and left the company; your first year commission can they ever charge those back. For eg...you get a commission this month and you leave the company next month but the policy remains active, you don't get a chargeback right even if you leave the company. Only when the client cancels the policy? correct?
 
I'm wondering if you are captive and left the company; your first year commission can they ever charge those back. For eg...you get a commission this month and you leave the company next month but the policy remains active, you don't get a chargeback right even if you leave the company. Only when the client cancels the policy? correct?

There seem to be a great number of ways for agents to get hustled, but I don't know of that ever happening as long as the client doesn't cancel.
 
Not necessarily. It all depends on what's in your contract. Generally, I'd say the odds are against an agent who leaves the company shortly after that will result in a chargeback. Pull out the contract that you (probably) never read and see what it says.
 
Not necessarily. It all depends on what's in your contract. Generally, I'd say the odds are against an agent who leaves the company shortly after that will result in a chargeback. Pull out the contract that you (probably) never read and see what it says.

I've only been licensed for about 10 years, but I've *never* seen a contract that reads that way. Have you?

What does happen sometimes is it does require the agent to payback an advance, but that's a different critter altogether.
 
Josh said:
I've only been licensed for about 10 years, but I've *never* seen a contract that reads that way. Have you?

What does happen sometimes is it does require the agent to payback an advance, but that's a different critter altogether.

Paying back an advance is a chargeback. Most of the time when you leave a captive company you will be charged back for every commission that is not earned. That includes FYC. If you got a 12 month advance and quit after 6 months, you owe them the unearned 6 months, unless you are fully vested of course(which rarely happens).
 
Paying back an advance is a chargeback. Most of the time when you leave a captive company you will be charged back for every commission that is not earned. That includes FYC. If you got a 12 month advance and quit after 6 months, you owe them the unearned 6 months, unless you are fully vested of course(which rarely happens).

If that's considered a chargeback, then fair enough. When I left AIL I wasn't vested so I didn't get any renewals, but they also didn't come back to me for a penny on any advances. With another (thieving) agency they wanted the advances back, but once those were paid continued to pay the commissions as earned.

I suppose a good question at this point would be to ask what agency/carrier is in question.
 
If that's considered a chargeback, then fair enough. When I left AIL I wasn't vested so I didn't get any renewals, but they also didn't come back to me for a penny on any advances. With another (thieving) agency they wanted the advances back, but once those were paid continued to pay the commissions as earned.

I suppose a good question at this point would be to ask what agency/carrier is in question.

This depends on the company and the agency. At some places, magically all your business just lapses as soon as you leave. Also, some contracts call for the entire first year commission to be repaid if it lapses at any time during the first year.

Finally, you can always have a policy be successfully contested and result in a chargeback, although this is probably the most rare.
 
I seem to remember someone<JD?> saying that happens with a company. I believe LH.

With that answer I should be able to run for president.
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Josh said:
I've only been licensed for about 10 years, but I've *never* seen a contract that reads that way. Have you?

What does happen sometimes is it does require the agent to payback an advance, but that's a different critter altogether.

Mega Contracts as you are not vested in your commissions and they will charge you back for what then becomes unearned advances even if the policy remains on the books.
 
Yes, I don't know about Mega contracts, but I do (sadly) have experience with United American contracts. This is how they work. Happily, it's not standard operating procedure, but it will only be seen in the contract the OP is referring to.
 
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