What are the Highest Life Contracts?

[johntrice]

I've been talking to a NMO about moving some life contracts and I was sent a grid sheet with contract levels far higher than I even knew were available. These contracts in some cases were 170% which is a full 40% higher than my highest at 130%. There was even a 120% with Gerber! These were all the major carriers and names common to our industry.

I called two friends, one a broker and one a CFP, and neither of them had ever been offered contracts that high. The way we have this figured is that these are probably based on production bonuses but I don't want to sound like a ignoramus when I talk with them. I've been selling insurance since the nineties so I'm not new to the game but WOW what I didn't know. I did check out the NMO and they sold 1.5 billion in annuities over the last ten years according to the official record, so they seem legit, at least on the annuity side.

Do any of you know how high life contracts can go with no production requirements?
What are the highest contracts with production requirements?
If an agent doesn't hit the requirements, are we paid on the traditional contract rate?
If this is an assignment of commissions, I'll pass. Do any of you know of other pitfalls we should look out for?

And NO I am not recruiting agents until I have a least a year under my belt with my current team.

Thanks for any insight!

 

[Fisher]

If an agent doesn't hit the requirements, are we paid on the traditional contract rate?

That seems like a good question to ask the NMO, I would think.

 

[johntrice]

Thanks Fisher, I will ask. I just wanted to know if anyone had ever moved their agency and didn't hit the requirements and what happen. Over the years, I have become very cautious in dealing with IMOs and NMO. There always seems to be a something that we didn't know and didn't know to ask!

 

[ianbroker31]

John, was the NMO offering 170% as well as a Company Car?

 

[ianbroker31]

John,

The IMO forgot to mention to you how many millions of dollars of paid production their going to require.

 

[johntrice]

Hey Ianbroker31,

Company car, I wish! Have you seen the new six wheeled Mercedes off-road monster? It's $300 grand of bad attitude!
I hope that's my signing bonus.

Anyway, I'm sure there will be some production expectation, I just hope it's clearly spelled out in writing.

 

[Fisher]

I'm confused... If it's NOT spelled out why in the world would you sign up?

 

[johntrice]

Hi Fisher,
I haven’t signed up. This was a offer and my thread was started to gain insight into what I might look out for with such a high contract. I am meeting with an Atlanta IMO today but the contract is lower but I was told there are a few perks they keep close to the vest.

Sometimes a higher contract from a NMO for experienced agents is better than the all the hand holding we get from a solid IMO. Frankly, most really experienced agents don’t need the extra services.

 

[VolAgent]

Hi Fisher,
I haven’t signed up. This was a offer and my thread was started to gain insight into what I might look out for with such a high contract. I am meeting with an Atlanta IMO today but the contract is lower but I was told there are a few perks they keep close to the vest.

Sometimes a higher contract from a NMO for experienced agents is better than the all the hand holding we get from a solid IMO. Frankly, most really experienced agents don’t need the extra services.

Most agents aren't doing anywhere near the production to get higher contracts that the company's require, so IMOs have to differentiate with services. These monster contracts are intended for agencies, not agents.

 

[johntrice]

Thanks VolAgent,
That makes a lot of sense since many of the question they asked were number of agents, and production levels.