Question

One way life insurance is sold is troungh carrer agents all the following are TRUE statements regarding career agents, EXCEPT: Copyright Connor Harrison 2023

a. Career agents do not always remain working for the life insurer as the retention rate is less than 15 percent after five years

b. Career agents earn commission on the policies they sell, and that commission can range anywhere between 40 to 90 percent of the first-year premium

c. Career agents are full-time agents who generally represent one insurer

d. Career agents earn a residual commission of 5 to 10 percent during the second year through the fifth-year that the life insurance remains in-force

Answer 1

Career agents are full-time agents earning commissions on the policies they sell. The retention rate mentioned lacks specific supporting data. Residual commissions vary, with the provided range as a general estimate.

Step-by-step explanation:

You are correct that career agents earn commissions on the policies they sell, which can range between 40 to 90 percent of the first-year premium. They are indeed full-time agents who usually represent one insurer. To address the question regarding the retention rate, while there might be a high turnover in the industry, it is not accurate to claim that the retention rate is as specific as less than 15 percent after five years without concrete data to support this statement. Moreover, career agents typically earn a residual commission after the first year, but the exact percentage can vary and the range provided, 5 to 10 percent, is a general estimate.