Commission on renewals after I leave working for an ins company

by J
(Whit)

If I am making a commission on policies that renew automatically and decide to leave the agency for whom I am working what is the industry standard ... Do I receive commission until policy is terminated or do agencies offer buyout or do I get nothing ... Just looking for typical scenario

Thanks!

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Vested commsions and renewals
by: Ted Wolk

Dear J.

This is where you need to read your contract, under the sections called first year commissions and renewal commissions, as well as the section called vesting.

Usually 1st year commissions are paid to the agent if and when they leave.

However, renewal commissions are based on vesting or time you stay with the company. As an example, if you stay with them for 5 years, you are 100% vested.

All vesting usually has a clause that says if you take any client you have with that company and have them drop that policy and you re-write it with a new company that you may go to work for, you lose all your vesting rights.

It is best you ask the manager who hired you and have them explain that part of the contract or you should call the home office contracting department to be sure.

Hope this helps...Ted

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