by gitane10553 » Sun Jun 05, 2011 05:53 pm
I am a non captive Life Ins. agent and selling FE with a company who is currently paying only 50% comm and 30% on graded..Found out that the lcompany makes you pay back the balance that clients still owe for the year although policies are still in force if I quit. Isn't that double-dipping and is it allowed. I am in Florida.
Posted: Sun Jun 05, 2011 07:15 pm Post Subject:
You should be entitled to commission on an "as-earned" basis. If the company has paid you an "advance" commission, it is entitled to the return of any "unearned" commission you may have received. That's not double-dipping.
A different example of the same concept would be if you went to work for a company that said, "We pay you $50,000 per year. You get all the money on the first day of the year." If you quit after 6 months, would you be entitled to keep the pay for the remaining 6 months? Of course not.
If you get $200 for the sale of a policy with a $400 annual premium, and you quit after the policy has been on the books for 6 months, you owe the insurance company $100 of your $200 commission advance. You earned the right to keep the other $100 by being their agent for at least six months.
Doesn't matter one bit if you are captive or independent. A chargeback is a chargeback, whether it is cause by a client's cancellation, or your own termination of employment/agency.
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