Is Pennsylvania Life Insurance a captive or independant agency? Do you know what there usual commission structure is?
Total Comments: 2
Posted: Sun Apr 04, 2010 08:57 pm Post Subject:
They are captive. Have no idea of commission structure.
Posted: Tue May 04, 2010 12:12 am Post Subject:
I began my career in insurance with Penn Life in 1980. Basic commission structure then was 50% first year, 5% renewals on the disability benefit product I sold. No idea what it is today. I made decent money, but didn't expect it to make me a millionaire. (I left in 1983 to go back to school and finish my BA and went on to get an MA. I rejoined the industry with another company in 1997.)
Federal and/or state insurance laws have something to say about commissions for Medicare Supplement Insurance, which is a big part of Penn Life's business today. In CA a company cannot pay more than 200% of the renewal commission as first year commission. So if 5% is the renewal commission, 10% is the maximum first year commission. If they pay 50% first year commission, they must pay 25% renewal commission. And renewal commissions have to be paid for a minimum of 5 years.
Intent is to prevent insurers from engaging in predatory sales practices or offering special incentives to agents for selling one policy form over another. Too bad the same laws don't extend into annuity sales to seniors.
Posted: Sun Apr 04, 2010 08:57 pm Post Subject:
They are captive. Have no idea of commission structure.
Posted: Tue May 04, 2010 12:12 am Post Subject:
I began my career in insurance with Penn Life in 1980. Basic commission structure then was 50% first year, 5% renewals on the disability benefit product I sold. No idea what it is today. I made decent money, but didn't expect it to make me a millionaire. (I left in 1983 to go back to school and finish my BA and went on to get an MA. I rejoined the industry with another company in 1997.)
Federal and/or state insurance laws have something to say about commissions for Medicare Supplement Insurance, which is a big part of Penn Life's business today. In CA a company cannot pay more than 200% of the renewal commission as first year commission. So if 5% is the renewal commission, 10% is the maximum first year commission. If they pay 50% first year commission, they must pay 25% renewal commission. And renewal commissions have to be paid for a minimum of 5 years.
Intent is to prevent insurers from engaging in predatory sales practices or offering special incentives to agents for selling one policy form over another. Too bad the same laws don't extend into annuity sales to seniors.
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