What Happens If You Get Let Go From A Carrier For Low Persistency? Does It Prevent You From Working Again?

[MrInsurance12345]

I noticed that on GTL's brochure that if you go below 80% persistency that they could terminate you.

One of the carrier questions is have you ever been kicked out from a carrier other than a lack of sales?

If that happened would that start to black list you from all carriers?

Why is GTL's requirement so high, especially when dealing with graded customers?

Would you have to start explaining that every time you want to get appointed?

Would you start screening the customers you sign up to the carrier? Or would you be super vigilant calling them every single month or something?

I heard that for other carriers, it's still 50%.

 

[jdeasy]

I noticed that on GTL's brochure that if you go below 80% persistency that they could terminate you.

One of the carrier questions is have you ever been kicked out from a carrier other than a lack of sales?

If that happened would that start to black list you from all carriers?

Why is GTL's requirement so high, especially when dealing with graded customers?

Would you have to start explaining that every time you want to get appointed?

Would you start screening the customers you sign up to the carrier? Or would you be super vigilant calling them every single month or something?

I heard that for other carriers, it's still 50%.

If you can't maintain 80% persistency you are pretty much out of the business anyway.

It's a not for cause termination. It won't have any effect on other carriers. Those carriers will care if you can't keep persistency up.

 

[MrInsurance12345]

It's a not for cause termination. It won't have any effect on other carriers. Those carriers will care if you can't keep persistency up.

What do you mean it's not a cause for termination? I have heard that you can get terminated for low persistency.

And if other carriers don't care, why do they ask that question on carrier applications?

If you said you were let go due to low persistency would that make it hard to get carriers going forward?

And how would that affect things if you wanted to branch out to sell annuities or medicare?

I've read that telesales can have persistency as low as 60%.

Do replacements count as losing business for persistency?

Thanks!

 

[jdeasy]

What do you mean it's not a cause for termination? I have heard that you can get terminated for low persistency.

And if other carriers don't care, why do they ask that question on carrier applications?

If you said you were let go due to low persistency would that make it hard to get carriers going forward?

And how would that affect things if you wanted to branch out to sell annuities or medicare?

I've read that telesales can have persistency as low as 60%.

Do replacements count as losing business for persistency?

Thanks!

I didn't say they wouldn't term you for low persistency. I said it's a "for cause" termination.

We are "at will" employees of the insurance companies. They can term us for any reason, or no reason, anytime they want. It's basically the same as a termination for no production.

A not for cause termination means nothing except you can't write business with them. You still get paid any commissions owed and any renewals.

If you get termed "for cause", that's a whole different story. They don't pay you any more commissions and it will cause problems getting contracted with other companies. You never want to be termed for cause.


You have to do some pretty bad shit to get termed for cause. But some agents do.

When other companies ask, that's what they want to know.

We can also fire companies at will. I have fired a few.

Just read your other questions, I'm sure many telesales agents are under 60%. So are some face to face. It's up to each company what threshold they will accept. 80% with GTL seems like a high bar for a junk company. Are you sure they didn't say 80% placement?

I don't understand your question on replacements. But yes, if you get replaced that affect your persistency.

 

[DonP]

I noticed that on GTL's brochure that if you go below 80% persistency that they could terminate you.

One of the carrier questions is have you ever been kicked out from a carrier other than a lack of sales?

If that happened would that start to black list you from all carriers?

Why is GTL's requirement so high, especially when dealing with graded customers?

Would you have to start explaining that every time you want to get appointed?

Would you start screening the customers you sign up to the carrier? Or would you be super vigilant calling them every single month or something?

I heard that for other carriers, it's still 50%.

Most carriers to get termed for bad perstency is 60-65% . Hell I know my persistency with Gerber was like 50-60% . I actually got termed from them about a yr ago for no production . I wrote like 2 policys in 5 yrs .There drafting was atrocious and the people I put with them are the worst . With ss billing carriers like am am , rna , trans , family benefit I always had 88-95% type . Interesting enough my gtl peristency is good even though there billing crap.I've had a few contestable claims with them in the 2nd yr and they paid them .i saw were Aig raised there Gi rates . I write very little Gi business the last few yrs