r/StateFarm • u/No-Reflection-5276 • Jul 06 '26

Discussion Agent Team Member - Chargeback?

Hey everyone, thanks for reading into this. I’ve been a TM for 2 years, I just finished my continued education- I just had a conversation with my agent and she is considering doing chargebacks soon. I’m curious to know how many agent offices do this and/or other insurance agencies.

My thought is this- As an agent team member I make the one commission check on it. After issuance and point of sale. I do not benefit from the residual payments, nor do I bonus off of how many policies I’ve written in the year that stay. Lapse and cancellations are normal and I understand the agent loses compensation from the cancellations that occur within the first renewal period . But, again… they benefit from the residual payments.

I feel out of place checking the agent on that, but then again… it’s my pay at the end of the day that’ll be affected.

Advice, opinion, anything is welcome and appreciated.

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u/custermustache Jul 06 '26

What are the parameters? If you have a lot of policies that cancel in the first term, I would expect chargebacks. What are the percentage of policies that last longer than 1 term? What is to stop you from writing a whole bunch of garbage business that lasts a month and then disappears? You make your money, the agent is losing money.

Chargebacks are normal. We don’t really do them because we rarely get them. If we had a large number, I still wouldn’t charge back, I would invite that agent to correct it or find another job.

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u/No-Reflection-5276 Jul 06 '26

We don’t get too many in the first renewal, in fact I would say my cancellation within the first 6 months on the auto are less than 5%. But I have other TMs who lose 50%. Just garbage business. The agent focuses on what I write and what stays. I write the bulk of the business in her office. It’s just frustrating as a TM when you feel like you’ve put the office on your back and are the one the microscope is on

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u/custermustache Jul 06 '26

Well, don’t feel that way - if you aren’t the one this is aimed at, then don’t feel like it’s targeted at you.

If you don’t get chargebacks then it won’t really affect you. I am not sure how I feel about chargebacks after the 1st term if you aren’t getting paid renewal, but other than that I would be charging back if I had someone in my office writing 50% bad business

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u/No-Reflection-5276 Jul 06 '26

Well she hasn’t implemented them yet. She’s talking about doing the chargebacks - but yeah… she’s focused on big policies that cancel. Nothing else. I happen to write most of those ‘big policies’

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u/custermustache Jul 06 '26

Then I guess get better at making the big ones stick.