Insurance Journal Forums

I just received my P and C license in Kentucky. I was offered 12% commission on new accounts but no commission renewals of those accounts when they renew. Am I getting a good deal if accept or should I pass?

1000% pass!

I agree

Is this for a direct writer or an independent insurance agency? I have found the direct writers offer this type of commission structure. If you are with a reputable independent agency, they usually offer higher NB commission and some sort of renewal commission. You will not own the accounts you write and have a 2 or 3 year non-compete, but you can build a book of business.

It is a bit tough to really say on this one. You are new. If you were an experienced commercial producer working for my agency I pay 50% of the earned commission for new business with 30% renewals. And a salary. My personal lines producers get 50% first year and no renewals, but a stronger salary as a base. Combined, my producing CSR's (small agency - everybody wears many hats) earned between 80K and 100K last year.
But, a new person will be more expensive to have on the books... so maybe starting out for a year or two with a base salary and 50% commission would not be bad... other things considered. Like, working with a mentor, agency paying for continuing education (if you work toward a designation like CIC, LUTCF, etc.). Then, after a few years you renegotiate your deal. If it is not to be with that agency then there are many other agency owners that would appreciate you more.