by Guest » Fri Jul 11, 2008 01:36 am
I was offered a job to recruit for a life insurance company. They want to pay me a percentage of the commissions they receive that are written by my agents. They are in NJ and I would be recruiting nationwide.
Is this legal?
Is this legal?
Posted: Fri Jul 11, 2008 04:21 am Post Subject:
I guess if it is described in the contract drawn between you and the insurer, than you may not have the option to defy it. I'm not sure about its legality, but I don't think it is illegal either.
Gilmore
Posted: Fri Jul 11, 2008 04:46 am Post Subject:
Hi Guest, allow me to put your problem in my own words,
from your narration it seems like that you've bought an agency from an insurance company and is now hiring several other sub-agents to run your business. If so, then you may have to share the revenue generated through the business with the insurance company.
You may be performing only as a franchise of the insurance company, hence, the franchise norms may apply to this business agreement. Please clarify if I have got you wrong. Thanks,
Posted: Fri Jul 11, 2008 05:13 am Post Subject:
Hi guys, I think you all have got it wrong. Its not the guest who's paying to the insurance company, but the insurance company wants to pay the guest since he was the recruiter. Read his post once more
They want to pay me a percentage of the commissions they receive that are written by my agents. They are in NJ and I would be recruiting nationwide.
Well, friend I don't think its entirely illegal. It may the company's practice to reward its employees :) Read your contract paper carefully and is possible talk to the other employees to know better.
Posted: Fri Jul 11, 2008 05:57 pm Post Subject:
I think that is not illegal. In the first place the company is the one offering to pay you a certain percentage from the commission they receive. Just clarify the terms to the company to be safe for it.
Posted: Fri Jul 11, 2008 06:34 pm Post Subject:
Just to clarify, I would be working as an independent contractor and did not purchase or pay for anything.
I wasn't sure if this would violate anything because I am a formerly licensed agent. It has been many years, but I didn't think anyone could be paid a commission from the sale of life insurance unless they were licensed.
Now, I am not selling insurance, but I am getting paid a commission from the sale. That seems like it would be in violation, but I could be wrong.
Posted: Sun Sep 28, 2008 02:33 pm Post Subject: Guest
system edited-spam deleted
Posted: Fri Oct 24, 2008 08:58 pm Post Subject: Guest
That is perfectly fine. I have been doing that for a while. They will pay a salary and the company will make an override. EX: They a 110% contract through a larger FMO and they have you put agents at anywhere from 50%-95% they will make the override and pay you want ever they feel is fair. You do all the work and it is painful at times and you also have to rely on agents to write business. The best thing is get your license and sell for your self. That way you make the 95-100 points and not 5.
Posted: Sat Dec 27, 2008 02:57 am Post Subject:
It is legal and a lot of agents become managers and recieve an override when they recruit other agents. I train agents on how to do this.
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