| Message |
Author |
|
 Posted: Wed Nov 26, 2008 11:09 pm Post subject: |
|
|
| Quote: | | But it is not necessarily illegal or unethical. It is determined by state law and normal requires you to no discriminate who you rebate to. |
Marpol, i have to disagree, on both points, first it is illegal in a lot of states, per ins. teacher, (trust me he knows what he's talking about), and sorry but it sure does 'smell' of unethical buisness practices to me. As far as the whole "what if your agent leave the business" question. | Quote: | | I can not think of an instance where an agent would give up renewal comp because it is sooooo small |
How about if they die, quit or get fired..?? Here's my thing...if you rebate, to get the client, which what other reason could there be...you are stacking the deck and (only IMO) short selling both your product and any ability you have to sell the product by (again IMO)..undercutting others of that company to get the business...and still..if you sell me and my lincoln my policy at 10% less premium...then you quit next week are you telling me that company will continue on with that rebate? I don't think they will.
_________________
"Never, never be afraid to do what's right, especially if the well being of a person or animal is at stake. Society's punishments are small compared to the wounds we inflict on our soul when we look the other way." Martin Luther King Jr. |
|
Lori
Moderator
Joined: 10 Sep 2007
Posts: 8173
Location: Missouri
287.90 Dollars($)
|
|
| Posted: Thu Nov 27, 2008 1:36 am Post subject: |
|
|
i do not disput that it is illegal on most states (47 to be exact). As far as being unethical i am not so sure. is it unethical for Best Buy to sell items at cost to drive customers? is it unethical for a real estate agent to take 1% commissions instead of 3%. it may not be the norm and agents may not like it (myself included) but we do live in a free marketplace (although that could be debated also). if it is not illegal then it is up to the agent to decide how to run his or her business.
As fare as the agent dieing and what not. If you state that you are rebating in rebating state then the person that takes over your business must continue the rebating. What i was trying to say is that the renewal commissions (with a few exceptions) are very very small compared to the first year commission so there would be no intensive to rebate after the first year. |
|
Marpol
Member
Joined: 02 Oct 2007
Posts: 80
Location: California
30.73 Dollars($)
|
|
| Posted: Thu Nov 27, 2008 11:25 am Post subject: |
|
|
Marpol you've made some good points.
But of the three (3) states that "allow" rebating the agent would still have to over come the clause in the agent's contract that specifically forbids rebating.
I do not know of any insurance company that "allows" rebating.
Can you name one (1) insurance company in the USA that allows rebating?
_________________
Gary Spicuzza, *SAFE
Copyright 1956.
No Rights Reserved.
*Self Appointed Financial Expert |
|
GarySpicuzza
Forum Expert
Joined: 03 Apr 2008
Posts: 959
Location: West Pasco County, FL
242.71 Dollars($)
|
|
| Posted: Thu Nov 27, 2008 11:39 am Post subject: |
|
|
| Quote: | | if it is not illegal then it is up to the agent to decide how to run his or her business. |
I agree with you totally...
What do you suppose the reason that 47 states, and apparently most if not all carriers forbid this?
_________________
"Never, never be afraid to do what's right, especially if the well being of a person or animal is at stake. Society's punishments are small compared to the wounds we inflict on our soul when we look the other way." Martin Luther King Jr. |
|
Lori
Moderator
Joined: 10 Sep 2007
Posts: 8173
Location: Missouri
287.90 Dollars($)
|
|
| Posted: Thu Nov 27, 2008 1:12 pm Post subject: |
|
|
thanks to all for your views on rebating and your heartfelt reply. 
_________________
INSURANCE AT PUNE |
|
ensurepune
Member
Joined: 21 Nov 2008
Posts: 56
Location: PUNE
2.44 Dollars($)
|
|
| Posted: Mon Dec 15, 2008 2:03 am Post subject: |
|
|
It seems there are diverse views as to rebate is ethical or not. Probably it is good to revisit the relevant state laws, perhaps one may understand the reasons why rebate is not allowed.
_________________
I am an insuranc sales coach for almost 2 decades. I have a collection of insurance agents' sales stories. To know more, you can visit http://www.stories-connect.com or http://xoseph.wordpress.com |
|
Xoseph
Preferred member
Joined: 30 Jul 2008
Posts: 126
Location: Malaysia
42.05 Dollars($)
|
|
Previous 1, 2
