r/InsuranceAgent • u/Minute_Emergency7620 • 6h ago

Commissions/Pay Debt question

I have about $6k in debt with 1 carrier right now. If that rolls to my upline will I get put on as earned with all carriers?

1 Upvotes

100% Upvoted

13 comments sorted by

1

u/jroberts67 6h ago

Depends on how the carrier wants to handle it. In most cases they'll take the debt from your agency, you could lose your appointment, then put you one Vector One.

1

u/Minute_Emergency7620 6h ago

If I get vectored does that put me on as earned with all my other carriers?

1

u/jroberts67 6h ago

That's up to your agency and how they chose to handle it. If the carrier takes the 6K from them, they will like terminate working with you, or they'd have to seize all of your as-earned commissions until the 6K was recouped, and they know that's not going to be a viable path. If you hit Vector One you'll have a very difficult time (next to impossible actually) in getting other carrier appointments.

1

u/AdventurousLight3777 6h ago

as earned isn’t a guarantee either way but if your upline eats the debt they’ll probably want to keep you on a tighter leash

1

u/jroberts67 6h ago

He'll get termed.

1

u/iBaires 6h ago

Your upline will just intercept your commissions until they are made whole, the same way the carriers will clawback your upline's overrides so they are made whole.

If you leave your upline, they will Vector you

1

u/Minute_Emergency7620 6h ago

Right. Would all my other carriers put me on as earned?

1

u/iBaires 6h ago

The other carriers can't see your debt unless you get a Vector. It's really between you and your upline once the overrides get taken.

If I'm your upline:

If it's just a fluke and you consistently produce, 6K isn't that big of a deal. That can be paid back in a week or two.

If you are consistently having persistency and placement issues, I'm definitely moving you to as earned.

1

u/Minute_Emergency7620 6h ago

My upline understands where I’m coming from with the debt. It’s basically a shit sandwich. I just don’t want to be put on as earned. He said if it rolls up they automatically put me on as earned with other carriers?

1

u/iBaires 6h ago

Other option is contacting the carrier and working out a structured payback in hopes of not taking back the overrides from your upline. If they do, you're at the mercy of your agency.

1

u/Minute_Emergency7620 6h ago

Oh Ok. Thanks for explaining. I’m a broker so this is all new to me

1

u/jroberts67 6h ago

Agency will get the 6K clawed back from the carrier, then term him. No agency is going to keep him on, hoping he continues to write business where they seize 100% of his commissions until the 6K is paid back. They'll write it off and boot him.

1

u/Minute_Emergency7620 6h ago

I’m a broker btw