In last week’s post, I mentioned the concept of exempt and nonexempt employees and provided a brief description of what makes an employee exempt from the requirement under the Fair Labor Standards Act (“FLSA”) that employees be paid extra compensation for any work done in excess of 40 hours per week. This subject is an important one, as […]
Read more...Category: Compensation
Must a Retired Agent Maintain a License to Receive Payments From Former Agency?
The Free Legal Service Program I run for the IIAG has provided me with yet another topic for a blog post. The above question was recently asked of me by a caller to that program. You would think that there would be clear answer to this question, as it is a situation that has occurred […]
Read more...Producer Compensation – A Trap For The Unwary
Many of my clients prefer not to go to the trouble of creating a written employment agreement for their producers. I think it is always better to document the more important aspects of an employment relationship, as memories tend to fade over time and can become “convenient.” In addition, any restrictions an employer may want to place on […]
Read more...For What Services Can An Insured Be Charged A Fee?
Judging by the telephone calls and e-mails that I have received from my clients and others since the beginning of this year, a New Year’s resolution made by many insurance agents has been to explore ways in which fees can be charged to their customers. I have had requests to review fee agreements for customers that are related to both personal and commercial lines […]
Read more...How Should Producers Be Paid?
This month’s cover story for the IA Magazine focuses on the various ways in which successful agencies are paying their producers. According to a recent study by Reagan Consulting, for the most part, there was little or no correlation between agency growth and the use of many standard producer compensation models (e.g., paying less for renewals than existing business, […]
Read more...Brokerage Fees – How Much Can You Charge?
I recently had an interesting question from a Big I agent who was taking advantage of the free 30 minute consultation that all Big I members get every quarter under the Free Legal Service Program that I operate for the Big I. The question concerned why a broker that the agent sometimes used to find a market for one of […]
Read more...Subchapter S compensation – trap for the unwary
As we hit the half way mark for 2012, many insurance agents are probably trying to determine what the rest of the year will bring in terms of compensation and how to minimize the taxes paid on that compensation. For those who are owners of Subchapter S corporations, there is one relatively easy way to reduce the amount of taxes paid on a […]
Read more...Service Fees and Insurance Certificates
In speaking with Steve Manders of the Insurance Commissioner’s Office last week about insurance certificate issues, the subject of whether a fee could be charged by an agent for the issuance of such certificates came up. Mr. Manders was of the opinion that since the issuance of insurance certificates was part of the normal servicing process for insurance policies, […]
Read more...New Counselor’s License Available
An announcement of importance to all Georgia insurance agents who sell group life and health insurance policies was made at the annual convention for the Independent Insurance Agents of Georgia last weekend. Tammy Holmes, who heads the Agent’s Licensing Division of the Georgia Insurance Commissioner’s Office, informed the annual meeting that, effective July 1, 2012, a limited […]
Read more...Increase Your Compensation
In these difficult economic times, agents need to constantly be on the look out for ways to increase the compensation they get from every policy they sell. For commercial risks, the Georgia Insurance Code provides a way to get both a commission from the insurance company and a fee from the insured. But to do so, an agent […]
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