What is OVERRIDE??

May 8, 2019

  1. SParker
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    SParker, May 8, 2019
    #1
  2. rousemark
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  3. pfg1
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    Example: you are on an 80% contract (meaning you get 80% commission) and the agency is on 100% contract. They get a 20% commission (override) on any business you do.
     
    pfg1, May 8, 2019
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  4. FinalExpenseDojo.com
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    The debt roll up happens when an agent that you recruit has a chargeback that they don't pay back to the carrier.

    When you recruit agents, their future debt becomes your liability. It's in the carrier contracts.
     
  5. rousemark
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    Before you recruit an agent and put them on advice ask yourself., Would I loan this person several thousand dollars?" because that is exactly what you are doing. You are cosigning for their debt and if they quit and don't pay their debit balance, you will have to pay it..
     
  6. SParker
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    THANKS All, very helpful.
     
    SParker, May 9, 2019
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  7. Lloyds of Lubbock
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    Lloyds of Lubbock Super Genius

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    The debt he is referencing is based on his first year commissions.
    If he gets an annualized commission and the policy is cancelled 6 months down the road he has a chargeback.
    As he is going to be a broker, any advanced commission is subject to a chargeback upon a lapse.
     
  8. Allen Trent
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    actually, that sounds more like the commission agreement between a principal & a subagent in a setup. many times, an override can be a completely different compensation component from the carrier to the agency on the premium over & above the sales commission paid.

    But essentially all the same, someone up the sales hierarchy receiving compensation from the carrier that doesn't make it all the way down to the producer of the sale
     
  9. Lloyds of Lubbock
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    He is a brand new agent, that has never written a policy.
    As a broker he is not bringing a lot to the table.
    I dont think he will get an override and if he does not much.
     
  10. VolAgent
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    It doesn't stop there. The upline is responsible for ANY AND ALL unpaid debt by an subagent. If a policy is rescinded within the first two years, it will generate a chargeback. If the agent doesn't pay it, it becomes the upline's responsibility.
     
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