Did you know that after health care reform happened, that the MLR was supposed to cut agent commissions? I am sure you did and by the same logic, I am sure you assumed that the general agencies and the IMO’s like us, (they shall remain nameless for now) also should have their commissions cut.
For example before health care reform they were making like 5-8 points off of most street agents. So one would assume that health care reform would have changed it to 3-5 points on most agents. Well the truth is no! The IMO’s are still making 5-8 points! We just found this out recently due to this website. We thought we were getting the highest comps possible at 13 and 14 points with United and Humana but that is not even close. The IMO’s are at 18 points with these carriers and they are paying out in most cases 10-12 points at most to street agents.
We find this behavior deplorable and refuse to take part. After learning of this issue we went out and got our own 18 point contracts (and both of these should be ready by August 1st). If you are making less than 13 points with Humana or Golden Rule you might be insane if you don’t call us. We will never make more than 3 points off of producers because guess what, we are producers!! If you do all of the work why should we make 40% of the commission? Because of chargebacks or accounting?
That is another issue, most of these IMO’s will say that accounting and the fact that they have an advance would make it seem fair for them to take 8 points. I assure you it isn’t the case. We got a nine month advance on both products and will happily share it with you the street agent or sub-IMO. Honesty is what will save our business from health care reform as well as not being greedy.
Call us now at 888 803-5917 and ask for Matt (extension 2052) as he will tell it like it is or fill out our Insurance General Agent form.