1. J Scott BurkePRO
    President, Newbury Inc., Evansville, Indiana
    They are paid a commission from the insurance company. There is no pass on charges to the applicant. You pay the same rate whether you apply through an agent or not.

    Generally speaking, 100% of the first years premiums are paid out in commissions. This may all go to the agent or divided up with his upline managers. Insurance companies benefit from this because they do not have to pay salaried people to market their products. It makes for a more effective distribution system.
    Answered on April 7, 2013
  2. Larry GilmorePRO
    Agent Owner, Gilmore Insurance Services, Marysville, Washington State
    It's going to depend on the type of coverage and the payout offered by the insurance carrier. The state where a policy is sold may also have some restrictions on how much commission is paid out at one time.

    A commission is paid to an agent "after" a premium has been paid and is in good standing from the insurance carrier.

    Commissions depending on the product can be paid for just one year or several at a lower amount each year, depending on the company.
    Answered on April 7, 2013
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