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Re: Re: 125% Commissions on Life Products

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Posted by Ken Young on October 03, 2003 at 18:58:56:

In Reply to: Re: 125% Commissions on Life Products posted by Agent on October 01, 2003 at 09:26:36:

: How can you afford to pay 125% Commissions on Life Products? Is that just a recruiting tool for a fixed time, or does that last for all business we write through you?

: There is no cost to be in the directory

: Agent
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:
: : Hello and welcome to Crown Financial Group,

: : We are currently recruiting agencies and independent agents who are ready to grow their business and enjoy the financial rewards of the insurance industry. We are committed to raising the bar on life contracts and long term care. Gives us a call and we will begin discussing how easy it is for you to boost your insurance contracts and build a strong insurance agency.

: : Best regards,

: : Daniel Anthony
: : Crown Financial Group
: : 4538 Centerview Dr., Suite 126
: : San Antonio, Texas 78228
: : Ph: 877-782-7696

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Agent............

One of the ways to pay a 125% of the first year's premium is as follows. The insurance company sells the risk to to a reinsurance company.

Based upon the persistency of the insurer's book of business with the reinsuring company the reinsurance company may pay as much as 150% of the first year's premium up front for the risk if the policy is a term policy and then a reduced renewal rate from there on in.

The insurer pays the agent 125% commission of the first year's premium spread over a two year period plus the second year's renewal in the second year.

Not a bad deal for the insuring company and for the agent too if he has a high persistency rate.
This leaves the insurance company off the risk for the death benefit.

Crown Life is a good company and although it is not a giant in the industry, it has a very high assets to risk ratio. :-)




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