Not approved for advertising use TMK1297 0910 Welcome To Online Training Agent Compensation.

Not approved for advertising use TMK1297 0910

Welcome To

Online Training

AgentCompensation


Compensation

I. Compensation BasicsII. Direct Pay Submit Advance CommissionsIII. Commission AccountIV. Production BonusV. Compensation Example


How our company makes money

Expenses incurred to acquire business:• Commissions and Bonuses

• Agents• Unit Managers• Branch Managers

Expenses associated with running the company:• Home office expenses• Leads• Branch expense account• Employee Benefits• Customer Claims



Agent 60% Annual Premium Commission 40% Annual Production Bonus15% Lead Account115% AP Annual Sub-total

Unit Manager40% Annual Premium Commission24% Annual AP Production Bonus (60% of Agent’s 40%)64% AP Annual Sub-total



Branch Manager 16% Annual Premium Commission16% Annual Production Bonus (40% of Agent’s 40%)8% Annual Z Account 40% Annual Sub-total

Home Office & Field Employee Benefits6% Annual AP12% Annual AP18% Annual Home Office Total


How our company makes money115% Agent Annual Sub-total

64% Unit Manager Annual Sub-total

40% Branch Manager Annual Sub-total

18% Annual Home Office Total

= 237% Annual Cost of First Year’s AP

+ Paying claims

PROFIT!


Why it’s important to you

• 237% Annual Cost of First Year’s AP

• Almost 2 ½ years to recoup cost of acquiring the business

• Critical that the business you write stays in force as long as possible for the company to make a profit and continue to pay outstanding commissions and bonuses


Minimum Standards

• DCN Rate must be 20% or lower• Quality of Business Rate must be 56% or greater• $320 annual premium issued on 13-week average• Must issue one net policy every eight weeks

Failure to meet any of these minimum standards may result in termination


Remainder of this training

Focus on the quality of business that is writtenIf it’s good for the Agent (commissions, bonus, renewals)It’s good for the Customer (protection)It’s good for the Company (profit)

It’s good for the Shareholder (earnings)

Quality business results in higher bonuses and more renewals for the Agent!


Compensation

Details found in the following documents:• Guide to Growth (www.libnat.com)


Acronyms

• LNL = Liberty National Life Insurance Company• PL = Permanent License• QOB = Quality of Business• AP = Annual premium


Acronyms (continued)

• DCN = Declines, Cancellations, Not Takens• Declined for underwriting reasons

o Medical history or paramed examo Motor vehicle report

• Canceledo Customer requests cancellation prior to issueo Underwriting requirements not met

• Not takeno Customer doesn’t pay initial premiumo Customer returns policy during free-look period


DCN

• Commissions• Annual premium from policies that were declined,

canceled, or not taken• Subject to chargeback from Commission Account

• Production Bonus• DCN Multiplier — factor based on percentage of total

submitted premium that was declined, canceled, or not taken


Acronyms (continued)

Most business written on these two modes:• BB = Bank Budget premium payment mode• PD = Payroll Deduction

Other payment modes:• ANN = Annual premium payment mode• SA = Semi-Annual premium payment mode• Q = Quarterly premium payment mode


Compensation

• LNL Agents are independent contractors until they qualify to become employees• Hold a PL for Life & Accident and Health• Have written applications resulting in the issue of $15,000

Annual Premium• LNL employees are eligible for:

• Employee benefits program• Taxes withheld from their paychecks


Review


Detailed information about how Liberty National Agents are compensated can be found in:

a) Your contractb) Your Commission Schedulec) Your Bonus Scheduled) Guide to Growth on www.libnat.com


Which of the following is NOT a requirement to meet Minimum Standards:

a) QOB of 56% or greaterb) DCN of 20% or lowerc) $100 annual premium issued on 4-week averaged) Must issue 1 net policy every eight weekse) $320 annual premium issued on 13-week averagef) All are requirements


What are the two most common payment modes:

a) Annuallyb) Semi-annuallyc) Quarterlyd) Bank Budgete) Monthly Premium Noticef) Payroll Deductiong) Both D & F


What does DCN stand for?

a) Don’t Call Nowb) Declines, Cancellations, Not Takensc) Debit Commission Notationd) Default Contract Negotiatione) None of the above


Liberty National Agents are independent contractors and must meet certain criteria to become eligible for employee status.

True or False


Compensation



Sources of Agent Earnings

• Direct Pay Submit Advance• Commission Account Draw• Renewal Commissions• Production Bonus


Formula: Commissions

Direct Pay Submit Advance

Balance of 1st Year Commissions(Deposited into Commission Account)

As-earned Renewals(from 13th month a policy is in force)

Commissions


Example: 35-year-old male

• $50,000 Whole Life policy• Annual premium = $1,010• First-year commission rate — Bank Budget mode = 60%

See Guide to Growth Appendix on www.libnat.com for commission rates


Formula: First-Year Commission

Annual Premium

Commission Rate

First-Year Commission


Example: First-Year Commission

Annual Premium

Commission Rate

First-Year Commission

$1010

60%

$606


Formula: Direct Pay Submit Advance Commission

Annual Premium

Commission Rate

Direct Pay Submit Advance Commission

Submit Advance Percentage (BB)


Direct Pay Submit Advance Percentage

Bank Budget and Annual modes 70% or 50%

PD (Section 125 only) 50% or 30%All other modes 0%


Example: Direct Pay Submit Advance Commission

Annual Premium

Commission Rate


$1010

60%

$424.20

Submit Advance Percentage (BB)70%


Direct Pay Submit Advance Rules

• Not paid if negative commission account balance – all commissions deposited in commission account

• Not paid if business violates rules on persons related to Agent by blood/marriage in the Agent’s Instruction Guide

• Maximum Submit Advance on any one policy is $300 (except policies on annual premium payment mode)

• After an Agent has been appointed for 13 weeks, if the Commission Account balance falls below $500, the Direct Pay Submit Advance will be reduced by half


Review


The Direct Pay Submit Advance Percentage depends on the premium payment mode of the business.

True or False


The Direct Pay Submit Advance will not be paid:

a) If there is a negative commission account balance

b) If business violates rules on persons related to Agent by blood/marriage in the Agent’s Instruction Guide

c) Customer has health problemsd) Both A & Be) All of the above


If an Agent has been appointed 13 weeks and the commission account falls below $500, what happens?

a) Direct Pay Submit Advance will not be paidb) Direct Pay Submit Advance will be reduced by halfc) Any bonus will be deposited into commission accountd) None of the above


Compensation



Friday: Submission cut-off is 3:30 p.m. central time

Commissions Cycle Calendar


Saturday – Tuesday: Adjustments occur



Tuesday Evening: Commissions finalized Wednesday: Reports are published

Commission Account StatementEarnings StatementRenewal Statement

Friday: Payday



Commission Account

• After Direct Pay Submit Advance is paid, balance of First-Year Commissions is deposited into the Commission Account upon policy issue

• A percentage of the First-Year Commissions is paid from the Commission Account weekly thereafter

• No lump sum withdrawals


Commission Account (continued)

• Amount of First-Year Commissions released based on Commission Account balance:

• Commission Account Statement on www.libnat.com

Commission AccountBalance

% of Balance

Pd. Wkly.

Less than $3,000

$3,000 to $3,999

$4,000 or more

6%

8%

10%


Example: Commission Account

This week:• $2,000 First-Year Commission• All policies Bank Budget = 70% Direct Pay Submit

Advance



$2,000X 70%

At Submit

CommissionAccount

$2,000Commissions

This Week

$1,400 Direct Pay Submit Advance Paid via EFT within two weeks

Business keyed in at Home Office & policies issued Mon-Fri

$1,400


Non-Direct Pay Submit Advance (Commission Draw):6%, 8%, or 10%* payments start within two weeks following issue*based on balance

$1,400 Direct Pay Submit Advance Paid via EFT within two weeks


$2,000X 70%

$1,400

At Submit

At Issue

CommissionAccount

$2,000– 1,400

$ 600 (30%)

$2,000Commissions

This Week

Business keyed in at Home Office & policies issued Mon-Fri


Commission Chargebacks

• DCNs prior to issue• Policies that lapse in the first year• Policy Delivery Acknowledgement not returned


Commission Chargeback Rates

# Months Paid Chargeback %

0-2 Months 100%

3 Months 90%

4 Months 80%

5 Months 70%

6 Months 60%

7 Months 50%

8 Months 40%

9 Months 30%

10 Months 20%

11 Months 10%


Split Commissions

• Commissions may be split 50/50 only on policies written on paper application A-250

• Applications cannot be split in the e-App system


Formula: Renewal Commissions2nd and subsequent years

Commission Rate %

Premium paid by customer

Renewal Commission


Renewal Commissions

• Renewal commissions are Direct Pay as premiums are paid by the customer

• For LNL Agents, renewal commissions will be paid to the writing Agent:• As long as the business is in force— and —• The Agent is with LNL as an Agent, Unit Manager, or Branch

Manager

See Guide to Growth on www.libnat.com for Renewal Commission rates


www.libnat.com



CC20002 (CC202010)Commission Account StatementsWeekly


CC172001 (CC170002) Transaction RegisterWeekly


Transaction Register — Annual Premium Column

Reflects increase or decrease in Agent’s in-force AP that affects growth


Transaction Register — Adjustments Column

• Reflects modifications which may need to be made to ensure items are listed correctly

• Example: policy incorrectly credited to an Agent

• Certain policies (like $3,000 accidental death policy, dental, vision) do not credit growth

• Example: rider added — decrease for old premium, increase for new premium


PY132003 (PY132005) Field Earnings StatementsWeekly


Commissions FAQs

What happens when there are returned drafts?• Reduces gross submit for commission calculation• If draft is made good:

• Does not pay an advance• Added to commission account

• Draft is considered “made good” when policy issues, then commissions paid

• Returned drafts do not impact Agent’s gross submit for Bonus qualification


Commissions FAQs

What causes a policy to be issued COD?A policy is issued COD if:• A policy is issued other than that for which the

applicant applied• A signature is required• The bank draft was returned


Commissions FAQs

What happens when there is a COD policy?• Agent paid Submit Advance when app is submitted• Balance of first-year commissions deposited into

Commission Account • When COD Letter of Transmittal received• Payment applied

• CODs not placed by Branch canceled at 45 days & submit advance commissions will be charged back


Commissions FAQs

What happens when commissions are assigned to an unlicensed Agent?•Commission posted to Agent’s escrow account•Once Agent is licensed or expired license is renewed, commissions released from escrow

• 70% Direct Pay• 30% deposited in Commission Account


Review


Agents should hold all apps until Friday afternoon for upload to the Home Office.

True or False


Which of the following is true about an Agent’s Commission Account?

a) After Direct Pay Submit Advance is paid, balance of First-Year Commissions is deposited into the Commission Account upon policy issue

b) A percentage of the First-Year Commissions is paid from the Commission Account weekly after the Submit Advance

c) Agents can withdraw funds at will from the Commission Account

d) A and B onlye) All of the above


If your Commission Account balance is more than $4,000, your weekly commission draw would be what percentage of the balance:

a) 6%b) 8%c) 10%


Commissions may be split 50/50 only on policies written on paper application A-250.

True or False


Your Commission Account is subject to chargebacks for:

a) DCNs prior to issueb) Returned bank draftsc) Policies that lapse in the first yeard) Policy Delivery Acknowledgement not

returned to the Home Officee) All of the above


Which one of the following information is NOT found in the Transaction Register?

a) Individual and Worksite business issued for the week

b) Submitted policiesc) Lapsed policiesd) Changes to payment modese) Transfers


Returned drafts reduce the gross submit for commission calculation, but do not affect qualification for production Bonus.

True or False


What causes a policy to issue COD?

a) A policy is issued other than that for which the applicant applied

b) A signature is requiredc) Returned bank draftd) All of the abovee) None of the above


Compensation



Friday: Submission cut-off is 3:30 p.m. central time



Production Bonus Cycle Calendar

• Wednesday: Bonus Detail Report is published• Wednesday – Tuesday: Adjustments are made to Gross Submit to

determine Net Submits


Production Bonus Cycle Calendar

• Tuesday Evening: Bonus finalized on Net Submit• Friday: Payday


Production Bonus

• Minimum requirements• DCN or QOB• Minimum amount of gross submitted premium• Bonus percentages depend on # of consecutive weeks

Agent has qualified for Bonus• Bonus payment cycle runs week following the

commission cycle


Production Bonus

• Bonus qualification based on the Agent’s gross submitted premium

• To count toward that week’s gross submit, applications must be processed in the Home Office by Friday, 3:30 p.m. central time and premiums must be successfully bank drafted

• Excluded from the calculation are annuities, group dental, group vision, discount cards, auto-issue accident policies and similar products on which a commission is not paid


Production Bonus

Life and Accidental Death Policies – Complex Beneficiary (CX)(Three or more beneficiaries or Other)• Application requires additional day for underwriting• Must be received by Home Office by Thursday, 3:30 p.m.

central time to count towards that week’s gross submit for bonus calculation purposes

• Complex beneficiary apps submitted after Thursday, 3:30 p.m. will not count toward current week’s gross submit for bonus purposes


Production Bonus

• If any applications submitted that week are declined or canceled, or if premium cannot be deducted due to invalid account numbers, insufficient funds, etc., before bonus processing the following Tuesday, gross-submitted premium will be reduced by amount of annual premium for that policy

• Agents should verify all bank account information and check for accuracy to avoid invalid account numbers


Production Bonus Qualifications

• Minimum $1,000 gross annual submitted premium• Bonus calculated on:

• 100% of net annual submitted Life premium• 20% of net annual submitted Health premium

• DCN and QOB rates include Life and Health premium to determine Production Bonus Multipliers



Agents Contracted Oct. 5, 2009, or later• 25% of earned Bonus deferred to 10th month• At 10th month, deferred Bonus deposited into

Commission Account• After 10th month, no portion of Production Bonus

deferred — Agent receives 100% of Bonus as earned



• Calculating DCN• Agents use a DCN multiplier of 1.0 for their first 2 months• Annual premium from months 1&2 will count in the DCN

Production Bonus Multiplier calculation• All Agents build to a 3-month DCN roll• After initial 2 months, if Agent production in DCN

calculation period is less than $1,000, maximum DCN multiplier Agent can qualify for is 1.0



All Agents transition to a 4 month QOB rate for Production Bonus Multiplier calculation on their 10th month


3-Month DCN Roll

January25

February25

March25

April25

May25

June

DCNMultiplierCalculated

1 2 3PRODUCTION

1 2 3DECLINES, CANCELLATIONS, NOT TAKENS

4

Used to calculate

Bonus


Example: 3-Month DCN Roll

January25

February25

March25

April25

May25

June

DCNMultiplierCalculated

1 2 3PRODUCTION

1 2 3DECLINES, CANCELLATIONS, NOT TAKENS

4

Used to calculate

Bonus

$4,000 $4,000 $4,000

$100 $350 $350 $200


DCN Multiplier Table

BB, PD, MN, Q, SA, and A

DCN % Multiplier DCN % Multiplier DCN% Multiplier21% + .00 13% .82 5% 1.09

20% .54 12% .86 4% 1.1219% .58 11% .90 3% 1.1418% .62 10% .94 2% 1.1617% .66 9% .97 1% 1.1816% .70 8% 1.00 0% 1.2015% .74 7% 1.0314% .78 6% 1.06

No Bonus will be paid to Agents with DCN rates higher than 20%


Formula: DCN Percentage

Gross Submitted Premium

Declines, Cancellations, Not Takens

DCN Percentage


Formula: DCN Percentage



DCN Percentage

$1,000

$12,000

8%


DCN Multiplier Table

BB, PD, MN, Q, SA, and A

DCN % Multiplier DCN % Multiplier DCN% Multiplier21% + .00 13% .82 5% 1.09

20% .54 12% .86 4% 1.1219% .58 11% .90 3% 1.1418% .62 10% .94 2% 1.1617% .66 9% .97 1% 1.1816% .70 8% 1.00 0% 1.2015% .74 7% 1.0314% .78 6% 1.06

No Bonus will be paid to Agents with DCN rates higher than 20%


QOB Multiplier Table

No Bonus will be paid to Agents with QOB rates lower than 54%


Formula: QOB Percentage


Business issued & paid 4 mos. or longer

QOB Percentage


Formula: QOB Percentage


Business issued & paid 4 mos. or longer

QOB Percentage

$10,080

$12,000

84%


QOB Multiplier Table

No Bonus will be paid to Agents with QOB rates lower than 54%


Production Bonus Percentages

Based on number of consecutive weeks Agent has qualified for Bonus

Consecutive Weeks Gross Submit $1,000

Annual Premium

ProductionBonus %

0 0%

1 10%

2 20%

3 30%

4+ 40%


Production Bonus Percentages• If a 40% bonus Agent misses a week of $1,000 required gross

submit, bonus percentage that week is 0%. • If Agent submits required $1,000+ the next week, bonus

percentage that week will be 30%

Week Gross Submit

Bonus Percentage

1 $1,000+ 10%2 $1,000+ 20%3 $1,000+ 30%4 $1,000+ 40%5 $900 06 $1,000+ 30%

7 $1,000+ 40%


Production Bonus Percentages• If a 40% bonus Agent misses required $1,000 gross submit

level a second consecutive week, Agent drops to 0% bonus level

Week Gross Submit

Bonus Percentage

1 $1,000+ 10%2 $1,000+ 20%3 $1,000+ 30%4 $1,000+ 40%5 $900 06 $900 0

7 $1,000+ 10%


Example: Calculating Production Bonus

• Agent appointed in last six months

• $1,000 Life Submit• $1,000 Health Submit• $100 Health DCNs• $200 Life DCNs• Agent at 30% Bonus Level• DCN Production Bonus

Multiplier 1.06 (DCN 6%)



Formula: Net Submit

Gross Submit


Net Submit



Net Submit

Gross Submit

Net Submit

$1,000

$900

DCNs$100

Health Life

$1,000

$800

$200



Net Submit

Net Submit

Bonusable Net Submit

$900

$180

DCNs20%

Health Life

$800

$800

100%



Net Submit

Net Health Submit

Total Bonusable Net Submit

$180

$980

Net Life Submit$800


Example: Calculating Production BonusFormula

Net Submit

Bonus Payable(Round down to whole dollars)

Basic Bonus Amount

Production Bonus Multiplier

25% of Basic Bonus Amount (deferred to 10th month)

Bonus Percentage Level (10%, 20%, 30%, 40%)

Net Bonus



Net Submit

Bonus Payable(Round down to whole dollars)

Basic Bonus Amount

DCN Production Bonus Multiplier


Bonus Percentage Level (10%, 20%, 30%, 40%)

Net Bonus

$980.00

$233.73

$294.00

1.06

$73.50

30%

$220.50

$233


Weeks

Bonus %

Extra %

Total %

1st Time 40% Bonus Earner’s Double Bonus

12

40%

+40%

80%

2nd Tim

e 40%

• For 1st time 40% Bonus earners only

11

40%

40%

1st time at 40%

4

40%

+40%

80%

1st Tim

e 40%

8 Consecutive weeks after 1st time at 40%

10

40%

40%

9

40%

40%

8

40%

40%

7

40%

40%

6

40%

40%

5

40%

40%

3

30%

30%

2

20%

20%

1

10%

10%


Example: Calculating Production BonusStep 1 — Paid WeeklyPlus 1st Time 40% Bonus Earner’s Double Bonus

$1,300 Net Submit (all Life premium)

40% Bonus Percentage Level

40% Calculated Bonus

40% First-time Double Bonus

Basic Bonus Amount


Net Bonus


Agent’s Weekly Bonus Paid

40%

$520

$520

$1,040

$260

$780

1.09

$850


Formula: Production BonusStep 2 — Deferral Paid at 10th Month

25% Deferral

QOB Production Bonus Multiplier

Agent’s Bonus Deferral(Rounded down to whole dollars)Deposited into Commission Account


Example: Production BonusStep 2 — Deferral Paid at 10th Month

25% Deferral

QOB Production Bonus Multiplier

(Round down to whole dollars)

$260.00

1.12

$291.20Agent’s Bonus DeferralDeposited into Commission Account

$291


www.libnat.com


CC340502 (CC340503) Bonus Detail ReportWeekly


CC341504 (CC341505) Bonus Detail Report Adjusted (DMSM)Weekly


PY132003 (PY132005) Field Earnings StatementsWeekly


Review


Which of the following is NOT true about the production Bonus?

a) The threshold to qualify for Bonus is $1,000 Gross Submit

b) Returned drafts do not lessen Gross Submit for Bonus qualification

c) Returned drafts reduce Net Submitd) Production Bonus is calculated on Gross

Submit


The percentage of Bonus an Agent receives depends on the number of consecutive weeks the Agent has qualified for Bonus.

True or False


What day and time each week is the cut off for application submission for gross submit for Bonus calculation purposes?

a) 3:30 p.m. Central Thursdayb) 4:00 p.m. Central Fridayc) 3:30 p.m. Central Friday


Which of the following is true about the Production Bonus?

a) Life & Health Submit counts toward Bonus qualification

b) No bonus will be paid to Agents with a DCN rate higher than 20%

c) No bonus will be paid to Agents with a QOB rate lower than 54%

d) All of the above


Which online report will show which Declines, Cancels, and Not Takens will reduce the Agent’s payable Bonus.

a) Bonus Detail Report Adjustedb) Bonus Detail Reportc) Field Earnings Statementd) Transaction Register


Compensation



Example: Calculating Agent’s Total Compensation

• Calculations are done automatically at Home Office• Online Field Reports (www.libnat.com)

• Commission Account Statement• Field Earnings Statement• Bonus Detail Report• Bonus Detail Report Adjusted


Meet Carl — Appointed 3 months ago

• Sixth consecutive week to qualify for Bonus (40% Bonus level)

• $200 Life DCNs• $100 Health DCNs• Individual Life DCN = 6%

(DCN Individual Production Bonus Multiplier = 1.06)


Carl’s Sales This Week

$30,000 Whole Life – Age 35 BB $38.56

Individual Cancer – Age 52 BB $32.00

$10,000 Whole Life – Age 46 BB $38.04

$30,000 Group Term Life – Age 40 (Section 125) PD $33.28

$25,000 Group Term Life – Age 29 (Section 125) PD $16.36

MODE MONTHLY PREMIUM*

Family Hospital Intensive Care – Age 36 BB $16.50

Life

Health

*Premiums shown are for illustrative purposes only.


Carl’s Annual Premium & Gross Submit

Individual Cancer – Age 52

Family Hospital Intensive Care – Age 36

$428.44

$369.78

$422.67

$355.56

$183.33

MODAL FACTOR

ANNUAL PREMIUM

$1,402.67

$538.89

Life Gross Submit

Health Gross Submit

Total Gross Submit $1,941.56

$38.56

$33.28

$38.04

$32.00

$16.50

MONTHLY PREMIUM

.09

.09

.09

.09

.09

$30,000 Whole Life – Age 35


$30,000 Group Term Life – Age 40 (Section 125)

$25,000 Group Term Life – Age 29 (Section 125) $16.36 .09 $181.78


Carl’s Annualized Commission



$257.06

$231.11

$253.60

$213.34

$58.67

COMMISSION RATE

ANNUALIZED COMMISSION

$855.38

$272.01

Total Annualized Life Commission

Total Annualized Health Commission

Total Annualized Commission $1,127.39

$428.44

$369.78

$422.67

$355.56

$183.33

ANNUAL PREMIUM

.60

.625

.60

.60

.32



$30,000 Group Term Life – Age 40 (Section 125)

$25,000 Group Term Life – Age 29 (Section 125) $181.78 .625 $113.61


Carl’s Direct Pay Submit Advance Commissionon Bank Budget Mode Premium

$257.06

$782.67

$253.60


Annualized Commissions on Bank Budget Mode Premium


$213.34

$58.67




Carl’s Direct Pay Submit Advance Commissionon Bank Budget Mode Premium

$ 782.67

$547.87

70%

Annualized Commission on Bank Budget Mode Premium

Direct Pay Submit Advance Commission Bank Budget Mode Premium

Submit Advance Percentage (BB)


Carl’s Direct Pay Submit Advance Commissionon Payroll Deduction Section 125 Premium

$231.11

$344.72

$113.61

$30,000 Group Term Life – Age 40

Annualized Commissions on Payroll Deduction Section 125 Mode Premium

$25,000 Group Term Life – Age 29


Carl’s Direct Pay Submit Advance Commissionon Payroll Deduction Section 125 Premium

$344.72

$172.36

50%

Annualized Commission on Payroll Deduction Section 125 Premium

Direct Pay Submit Advance Commission Payroll Deduction Section 125 Premium

Submit Advance Percentage (PD – Section 125)


Carl’s Direct Pay Submit Advance Commission

$ 547.87

$720.23

$172.36

Direct Pay Submit Advance Commission (BB)


Direct Pay Submit Advance Commission (PD-Section 125)


Deposited into Carl’s Commission Account

$1,127.39

$407.16

$720.23

Total Annualized Commissions

Deposited into Commission Account


• Commission account draw 6%, 8%, 10% depending on balance


Carl’s Net Life Submit

$1,402.67

$200.00

$1,202.67

Gross Life Submit

Life DCNs

Net Life Submit


Carl’s Net Health Submit

$538.89

$100.00

$438.89

Gross Health Submit

Health DCNs

Subtotal

$87.78

20%

Net Health Submit (for Production Bonus calculation)

% Net Health Submit on which Bonus is calculated


Carl’s Net Submit Premium

$1,202.67

$1,289.85

$87.18

Net Life Submit

Total Net Submitted Premium

Net Health Submit (20% of total)


Carl’s Individual Production BonusStep 1 — Paid Weekly

$1,289.85

$410.17

$515.94

1.06

$128.99

40%

$386.95

Net Submit

(Round down to whole dollars)

Basic Bonus Amount


Basic Bonus Amount (deferred to 10th month)

Bonus Percentage Level

Net Bonus

$410 Agent’s Weekly Bonus Paid


Carl’s Earnings from This Week

$720.23

$410.00

$1,537.39

$407.16


Production Bonus Paid

Total First-Year Commissions and Bonus

Deposited into Commission Account



• $1,537.39 First-Year Commissions and Bonus Earnings This Week

So how does the amount of business written equate to the amount of money earned?

• Total Gross Weekly Submit $1,941.56

• Total Gross Monthly Premium $174.74



$ 1,537.39 First-Year Commissions and Bonus Earnings This Week

52 Weeks

$79,944.28

Don’t Forget: 10th month: Deferred Production Bonus13th month: Renewals on in-force business


Congratulations!

Not approved for advertising use TMK1297 0910 Welcome To Online Training Agent Compensation.

Documents

annual premium slide

annual cost

advertising use tmk1297

ap annual subtotal slide

annual premium commission

agent annual subtotal

annual production bonus

annual home office total