Voluntary Carrier Commission and Compensation Practices—2012
In today’s competitive voluntary market, distribution is the scarce commodity. Simply put, there is greater demand for distributors than the supply. As a result, carriers must compete for the distributors’ attention. One of the best ways to do this, of course, is through compensation.
The Voluntary Carrier Commission and Compensation Practices—2012 report updates Eastbridge’s past studies and again examines the compensation practices and policies of top worksite/voluntary marketing carriers. Some of the specific topics covered include:
- Commission schedules, by product line, for worksite business
- Enrollment costs and impact on commissions paid for different enrollment types
- Commission rates for takeover cases
- Approach to handling Broker of Record letters
- Advance practices including eligibility, timing and recapture procedures
- Other types of compensation and/or bonuses available
- Payment procedures (i.e., types, minimum requirements, etc.)
With this data, carriers can examine their own commissions and compensation practices and determine what changes, if any, are needed.
Order Info: Voluntary Carrier Commission and Compensation Practices—2012 is available for purchase for just $3,500. To purchase a copy, you can email Eastbridge at info@eastbridge.com or call (860) 676-9633. Published 2012.
Table of Contents
1. Executive Summary
A. Study Objectives
B. Key Findings
C. Methodology
2. Detailed Findings
A. Producer Commissions
1. Number of Commission Schedules
2. Heaped vs. Levelized Commission Options
3. Term Life Commissions
4. Universal Life Commissions
5. Whole Life Commissions
6. Short-Term Disability Commissions
7. Long-Term Disability Commissions
8. Accident Commissions
9. Cancer Commissions
10. Critical Illness Commissions
11. Long-term Care Commissions
12. Hospital Indemnity/Med Supp Commissions
13. Dental Commissions
14. Enrollment Commissions
15. Carrier Enrollment
16. Passive Enrollment
17. Electronic Enrollment
18. Takeovers
19. Benchmarks Used
20. Vesting of Renewals
21. Renewal Splits
22. Renewal Compensation for Non-Vested Producers
23. Broker of Record (BOR) Letters
C. Advances
1. Advance Practices
2. Eligibility for Advances
3. Percent of Brokers on Advance
4. Timing of Advances
5. Interest Charged for Debit Balances
6. Advance Recapture
7. Persistency Impact on Advance
D. Bonuses and Other Compensation
1. Bonuses
2. Bonus splits to Enrollment Companies
3. Changes to Bonus Program
4. Contests
5. Conferences and Trips
6. Licensing and Appointment Fees
E. Payment Procedures
1. Payment Frequencies
2. Payment Types
3. Minimum Check Amount
4. Electronic Commission Statements
3. Commission Schedules by Company
|
