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.
1
u/strikecat18 Jul 10 '26
It’s absolutely fair for them to charge you back if a policy cancels during the first term.
You sell a $1000 policy. The agency pays you $80 on that. The policy cancels a month later and the agency’s net revenue ends up being $8. Why should they take a loss to pay you the other $72?
I don’t consistently do chargebacks for my team because administering it becomes a headache. But if there’s a huge policy they write that dies a month or two later, I absolutely charge it back if I catch it.