I am currently an insurance agent who is in the process of transitioning into the financial services arena. I currently have 2 job offers from firms, and I have been told 2 different things about my outside renewal (trail) commissions. One brokerage told me that I simply had to claim it as outside income and the other is stating that I must essentially send all renewal income through them (of which they will take 60%). I have about $6,000 a year in renewal income and would expect it to continue for about 15 years. I obviously do not want to have to give up 60% this trail income and am confused by the differing responses I'm getting from two well known firms. Insurance is not the same as security products and works differently than say a mutual fund when it is moved. If I cancel my appointment with a company or go to a different insurance brokerage, this has no effect on any past policies and trail commissions that I might receive from that company. Anyone have any insight on this or ran into this themselves when starting out?
Is there not one person out there who had an insurance background before starting in this business who knows the answer to this?
There aren't many posts to these boards over the weekend. Your best bet on someone meeting your conditions and viewing your post would be sometime Monday - Wednesday. So, be patient for a few days and you might get your answer.
You vested yourself in those renewals. Since they aren’t securities trails, your new firm isn’t entitled.Find a firm that will keep their hands off.(Of course disclose the income to your new BD)