Changing of insurance agent, will the commission switch to the new agent??

Answer 1

It depends upon your state's insurance laws and the type of product. My state's insurance law requires payment of commissions to a new agent servicing an existing policy as follows:

"(c) Commissions payable -- (1) subject to the provisions of paragraph (2) of this subsection, the new insurance producer of record shall be paid all commissions payable on the policy effective not later than the next anniversary date of the policy following the effective date of change.

(2) The commissions payable under paragraph (1) of this subsection do not include: (i) vested life insurance commissions; (ii) supplemental health insurance commissions; or (iii) commissions or other compensation payable under an insurer's retirement or deferred compensation plan with the insurance producer."

Call your insurance commissioner's office and inquire whether there's a similar law. In the presence of such a law, an insurance company cannot adopt its own procedure to circumvent paying commissions to a new agent.

I hope this helps.

Answer 2

Good answers, above. I would add only one thing. Some companies are now requiring that the writing (original) agent sign a form surrendering the client to the new agent, which is quite annoying. In some states, the carrier cannot do that, I understand. And, with regard to insurance sold through a securities firm, like Merrill Lynch, the carrier may ignore the request of the policyowner to change the agent of record so as not to offend the securities firm. The securities firm is deemed the agent of record, not the individual that sold the policy, and the commissions continue to flow to the securities firm. Another annoying practice.

Answer 3

Different company may have different policy. But generally if it's client decision (like put up "Change of Agent" form) to change the agent, then the commission will not switch to the new agent. If it's the Manager to pass a existence policy to a new agent due to example existing agent quit, then the commission will be switched to the new agent.

Answer 4

If you are changing mid term, most of the time the new agent can't get any commission until the policy renews. This is, of course, subject to your state laws.

That's why an agent will probably tell you to wait until the policy renews - otherwise, they do all the work, and don't get paid.

Answer 5

No. Unfortunately it won't. The renewals will stay with the "bad agent" until he is no longer working for the company. Unfortunately, I am very aware of this because I am an insurance agent that believes in customer service. One of the few. I get all of the clients that are not happy with their agents, or the clients that their agents left. I do not make a penny servicing these folks and their kids. I do it because these clients believed in my company and the service they were promised. The best thing you can do is pass on their name to your friends and family. That is the best thank you they can get. Don't take for granted that they are helping you because they get paid, because they don't and they do not have to help. Some of us just do it because we love our jobs.

Answer 6

No idea what goes on in the lives of insurance companies. But that should not matter to you. An insurance company takes your money just incase something happens and does not give it back if nothing happens. So it shouldn't matter if the new insurance agent gets the comminssion or not, just that you get the best serivce for your money, unless this agent is family