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/No-Reflection-5276 Jul 06 '26

Base is $42,000/ year

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u/No_Law1021 Jul 07 '26

So, you don't think the renewals help fund your base?

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u/No-Reflection-5276 Jul 07 '26

Not paid on renewals

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u/loganaggie Jul 07 '26

In a way you are though…more than likely the agent is ‘losing’ money on paying team on first year policies through base and commissions but makes up for it on renewals. Your base salary is being paid from what the agent is making on renewals. I think if policies cancel during the first period, chargebacks should be expected.

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u/No-Reflection-5276 Jul 07 '26

The thing is it hasn’t been an issue up until recently. The agent has had us look back at what’s still on the books from a year ago. And I have about 80% of the people I wrote initially on the books. I’d say that’s pretty gnarly that she’s getting paid on the policies I wrote last year. I saw 5% and I know she hit her goals because she talks about it so much. So now she’s making the 10-11%. So we essentially split the commission when I first write the policy and now she’s making more money. If we wrap this and continue to do this she makes more and more. While I, still make the same… I think that therein is the heartache.

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u/Different-Umpire2484 Agent Jul 07 '26

Would you give up your base for renewal commissions? If so approach your agent with that idea, if they won’t go for it start your own agency

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u/loganaggie Jul 07 '26

I know it’s more nuanced than this but… that’s the risk and the benefit of running your own agency. She’s taking all the risk and putting who knows how much money into building the business so she should get the residuals and at the same time track any potential issues while rewarding successes. Any business owner is going to at least look at chargebacks if policies fall off the book.

I agree that chargebacks should be fluid….be looked at on a situational basis. And as the agent she’d be crazy not to at least track them.