by rolanda » Mon Jun 27, 2011 12:42 am
I am a IA agent and I submitted my first business at the end of March and I did not recieve my first check until June and it was returned. The contract was based on me getting paid for my work since the check was return could I just submit a letter of cancellation and end my arrangment with the company
Posted: Mon Jun 27, 2011 07:41 am Post Subject:
I did not recieve my first check until June and it was returned.
Please explain this . . . it makes no sense to me.
could I just submit a letter of cancellation and end my arrangment with the company
This is the USA. Abraham Lincoln freed the slaves about 150 years ago.
Posted: Mon Jun 27, 2011 02:25 pm Post Subject: Notice of cancellation
I started working with the company in March 2011 and I submitted my first application at the end of March. From March to June 3rd, I submitted $10000.00 in premium but no commission actually paid until June. The amount was for $281 and that was returned from my bank NSF.
Posted: Mon Jun 27, 2011 02:57 pm Post Subject:
I started working with the company in March 2011
It's still unclear to me what your agency relationship is. Are you a captive agent of an insurance company, an independent agent working through an MGA or an IMO/FMO, or did you contract as an independent agent directly with an insurance company? Are we talking about life insurance, property & casualty, or ???
The amount was for $281 and that was returned from my bank NSF.
An insurance company check was returned NSF or a check from your MGA was returned NSF? The former should NEVER happen, the latter is a different issue entirely. When most agents submit new business, the insurance company usually cuts a commission check to someone within a couple of weeks.
It could be that your arrangement with the MGA allows them to be paid your commission, and they forward your split upon receipt. If you were an independent agent or a captive, your commission check would come directly from the insurance company to you. Have you talked to the MGA (if one is involved) or the insurance company about this at all?
What kind of policy/policies did you submit $10,000 in premium and only get a $281 commission for? Was that the actual check amount or the "annualized" premium (that is, the application was for a premium of $833.33 per month)? Even final expense pays more than that. Is this an advance or an "as-earned" commission? Is it a split commission with your MGA or your full commission? Or was this an annuity contract that only pays a 2.8% commission on deposit premiums?
What is your commission arrangement with the insurance company or MGA? Did you get paid for all business submitted, or was this just a commission on the very first application? What does your commission statement tell you? Were funds withheld for a chargeback/impound account?
Too many unanswered questions here.
Regardless, something is dreadfully wrong here. No insurance company check should ever "bounce" -- EVER! If the check is from an insurance company directly, the Dept of Insurance needs to know ASAP because it could indicate that the insurance company is in financial trouble. It could simply be some kind of mistake, but that is doubtful.
If the check is from an MGA, you may or may not have a bigger problem. It depends on what your contractual arrangement with the MGA is. What you received could have been a check for the correct amount based on your contract, evidence of a fiduciary crime, or simply an outright scam.
One way or another, an NSF check related to the sale of an insurance product is not a good thing. Not for agents, not for clients, and not for insurance companies. Many states permit treble damages if a check is knowingly written against insufficient funds, but for that you either have to sue or the maker of the check has to be prosecuted criminally and restitution must be ordered by the court.
A little more specific information from you would be most helpful.
Posted: Wed Jun 29, 2011 01:56 am Post Subject: IA Agent
I was an Independent Agent with a Captive Company. I was responsible for my own taxes and the overhead of my office. I was able to write the policy with were con-tracted in the agency I was apart of.
I did write about 7-8 different P & C policies and the total premium of all the policies were about $10,000.00 I have sent a letter to the agency that I wrote with but I still have not recieved any commission or the fees from the returned check.
I hope this helps you to understand my situation.
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