By Claudia A. Pahl, Senior Coordinator
Would you be surprised to know that most insurance carriers have discontinued issuing producers their commissions via paper checks? There remain a few that still do, yet will only do so once a month or on a quarterly basis.
Why wait days for payment? Direct deposit, also referred to as electronic funds transfer (EFT) is the quickest way to go. The majority of insurance carriers will release commissions within 24-48 hours of receiving policy/contract delivery requirements. Be aware that if you have a large annuity premium (most likely $500,000 and over) you might receive your commissions in two payments, the first upon delivery requirements being received, and the second when the policy delivery receipt is submitted and the contract is past its free look period.
Wonder where that commission statement is? If the carrier is no longer sending a hardcopy by mail or notifying you of it electronically, you can be assured that it’s still there for you – you just need to log in to the secure agent section of the carrier’s website to access your commission statements. This can usually be found in an area of the site like “business management” and in proximity to where you can also download copies of your clients’ annual statements.
We understand that you get busy selling, but don’t forget: if you switch your personal bank accounts or financial institutions, you will need to notify the carrier with a new EFT form and voided check.
Carriers outline their specific commission guidelines and make these documents available to the producer (you’ll often see these as part of your contracting packets, but you can also request them at any point from your AAAE marketer). In them, details like commission payment frequency, chargebacks, and trail commissions are outlined.
If you need to set up a new commission EFT or change your account information on an existing one, give us a call today at 800.321.3924 and we can assist you!
Claudia A. Pahl| Senior Coordinator
Ann Arbor Annuity Exchange
Ph: 800.321.3924 x120 | Dir: 734.786.6120
Designed for Financial Professionals.