Final answer:
The maximum sales load an insurance agent is allowed over 20 years varies depending on the insurance company and policy, with the sales load typically being a percentage of the premium. It can range from 0% to around 10%.
Step-by-step explanation:
The maximum sales load that an insurance agent is allowed over 20 years can vary depending on the specific insurance company and policy. However, a common practice in the insurance industry is for agents to charge a sales load or commission on the premium paid by the policyholder. The sales load is typically a percentage of the premium amount, and it can range from 0% to around 10%.
For example, if a policy has a premium of $10,000 and the sales load is 5%, the agent would be allowed a maximum sales load of $500 ($10,000 x 0.05) over 20 years.
It's important to note that sales loads are typically higher in the initial years of a policy and may decrease over time. Some insurance companies may also have caps or limits on the maximum sales load that an agent can charge.