Commission For P and C

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rascatch
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Commission For P and C

Post by rascatch » Fri Mar 22, 2019 1:13 pm

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?

BADTROUT
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Re: Commission For P and C

Post by BADTROUT » Fri Mar 22, 2019 5:13 pm

1000% pass!
Uwe Philip Kirch
President/CEO Rocky Mountain West Insurance
President/CEO Horizon Agency Systems
Horizon can help you start or grow your independent insurance agency
https://horizonagency.systems

pageltd
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Re: Commission For P and C

Post by pageltd » Mon Mar 25, 2019 10:40 am

I agree
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pskwheeler
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Re: Commission For P and C

Post by pskwheeler » Tue Mar 26, 2019 7:40 am

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.

Swymmer
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Re: Commission For P and C

Post by Swymmer » Tue Apr 09, 2019 3:38 pm

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.

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