Hi,my question is if the customer cancel the policy or unabl

by vaishaligroverdec » Wed Dec 05, 2012 08:00 am

Hi,my question is if the customer cancel the policy or unable to pay rest premium can company can take back the money from Insurance Advisor.

Total Comments: 2

Posted: Wed Dec 05, 2012 02:06 pm Post Subject:

In all probability, no.
There might be a time limit though.

Posted: Thu Dec 06, 2012 08:11 am Post Subject:

In all probability, no


In all probability, YES. Fanny is either not a licensed agent, or hasn't been one long enough.

What you are asking about is called a CHARGEBACK. Most insurance companies pay what are known as advance commissions . . . anywhere from 50% to 75% of the first year commission up front when the application is received or the policy is issued (depends on the insurance company).

Commissions are then "earned" each month as the premium is paid. But if the policy is not taken on delivery, or cancelled at any time during the first 12 months, some or all of the commission paid must be returned to the insurance company.

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