What is OVERRIDE??

[rousemark]

I assume GA and IMO are interchangeable, hey I am old!
In NY the highest comp a GA can get is 100%.
He has to hit certain benchmarks to get there.
Lots of companies pay 100% on whole life?, I dont know the FE market but no mutual licensed to do business in NY pays 100 points.
I cannot see any reputeable GA offering this guy much override.
He has no experience, he is entering the business part time and making no committment to the GA.
If he is offered 80% he should take it.
Asking this board what he is getting is ridiculous.
Ask the GA what he gets at $1000 of premium, that will be his final and correct answer.
On limited pay products he will get less......that is a different discussion.

I did not see where he said it was a Mutual. However, Columbian is New York Mutual and they pay in excess of 100% to the GA with the expense allowance. I have enver written one of their par plans and I am not sure they are competitive but that doesn't change teh comp..

 

[Tahoe Ray]

I did not say where he said it was a Mutual. However, Columbian is New York Mutual and they pay in excess of 100% to the GA with the expense allowance. I have enver written one of their par plans and I am not sure they are competitive but that doesn't change teh comp..

You said:

Ray, he said WL not UL.. Lots of companies pay 100%+ on WL..

which is not accurate and confusing to anyone who is new to the business or writing in NY. A few companies that nobody writes doesn't constitute "lots of companies" paying 100% on WL (or UL or term) in NY.

 

[Lloyds of Lubbock]

If they pay more than 100% to the GA (which is debateable) how much can the GA afford to pay a broker and stay in business?
Especially one that is brand new and making a part time committment
I would also bet that expense allowance is for new GA's and wears off after a few years.
I know he spoke to a Mutual because I spoke with him.
He is obviously having a disconnect with his expected payout.
This forum will not answer his question.
His writing GA can and it should be stated in his brokerage agreement.

 

[rousemark]

You said:



which is not accurate and confusing to anyone who is new to the business or writing in NY. A few companies that nobody writes doesn't constitute "lots of companies" paying 100% on WL (or UL or term) in NY.

I will stand corrected if we are only talking about Mutual companies and PAR products I did not see anywhere that he mentioned the companies you list.. If you are limited it to those companies, I will certainly yield to your knowledge as I know nothing about their contracts..

 

[myinsurebiz]

#1) 55% commission directly from the carrier for selling their WL products plus,

#2) 45% x the commissions from #1 above which I will get from the local agency.

So in this case, the override is not what the agency will take from me, but what the agency will pay me.

This sounds like you are on a 55% contract with the carrier and your Agency is paying you 45% from them too.

Not an over-ride. Basically, a performance bonus or commission . . .

 

[Tahoe Ray]

This sounds like you are on a 55% contract with the carrier and your Agency is paying you 45% from them too.

Not an over-ride. Basically, a performance bonus or commission . . .

Again, this is not true in NY. It is not a performance bonus.

Base comp for every major carrier in NY is 45-55%. The GA normally kicks in what we call an "override" to get the comp closer to 80% (give or take a few points) for producers who write and don't need hand-holding.

The 45% the OP mentioned is likely a % of the 55% which is how many agencies calculate overrides in NY.

Like Lloyds of Lubbock said...all he has to do is ask the GA what he makes on 1k of target to compute the actual percentage (but I guarantee it won't be $1,000 dollars).

It could be an issue with the terminology as to why this is confusing for several posters/readers but everyone in NY (where I have an agency) calls it an override.

 

[Tahoe Ray]

I will stand corrected if we are only talking about Mutual companies and PAR products I did not see anywhere that he mentioned the companies you list.. If you are limited it to those companies, I will certainly yield to your knowledge as I know nothing about their contracts..

He mentioned all of those carriers in another thread. He is looking for cash value-focused, participating whole life. There isn't one carrier in NY worthwhile that offers a product with that description that pays anything like what you describe.