Commission Payments

I have been working for the same independent agent for over 20 years. I currently earn 40% commission on all business I write as well as on renewals. I am paid on a 1099 as an independent contractor. I would like to start my own agency. When I stop writing new business for this Agency and go out on my own, can they refuse to pay me Commissions on future renewals? Also, am I permitted to send letters out to my existing clients letting them know that I am no longer at my current Agency and give them my new contact information. Looking forward to your response. e-mail is

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Re article on renewals.
by: Ted

Thanks for your response. Ted

by: energiapartners

Amazing post, thanks for sharing this article.

Commissions after leaving an agency
by: Ted

I can not answer your question without seeing your most current contract agreement.

Are you talking life insurance or property and casualty insurance?

You need to read your contract that you have with them. Sometimes those renewals are called service fees and are only payable to you as long as you work for them.

Is your commission contract with the agency or is it with the insurance company you write for.

What you need to do is sit down with the agency manager and tell him you are thinking of making a change sometime down the road and was wondering if your renewals will continue to come in if you do not go out and replace those policies you have on the books, but end up writing new business on some of your existing clients. If your agency manager is a good guy he will agree to that.

Just suggest your looking at trying to create a win-win situation for them and you and maintain a good relationship with him and leave on a professional level.

Bottom line, if they won't work with you and you have a better product, then you may want to sit with your clients and see if it would be beneficial to change to a more current product. However, I am not a fan of life insurance replacement. Some of the older policies may have better guarantees than today;s policies.

You may want to look at our agency building manual located on the right side of our website pages.

Good luck and let me know if I can help. Keep in touch.


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