Re: [VFB] NON-FF

[Jeff Frye]

Peggy, with respect to your comment about long term care policies having 
very high commission rates, consider that premiums are paid over the 
life of the policy with the commission generallly paid from the first 
year premium. Even if the premiums were only paid for 10 years that 
would pay your agent an average of 5% a year for their work. Compare 
this to your home and auto where your agent gets 10% on all your 
premiums and what your potential benefits are from either policy. Just 
setting the record straight. -Jeff

Peggy Brenner wrote:

A little late, I just finished up 2 years of temping, and 4 of those 
jobs were at a local large used car lot in accounting.  This is why 
they LOVE to sell warranties, the commission was higher than on some 
of the cars.  It was around 40% and the split with the dealer of this 
and the excess points of interest on the loans, you know the ones 
where you have 1 late payment in a life time, so don't qualify for the 
special rate of the day deal, was in many cases higher than the $$ 
earned on the car.

One has to remember that most of  these extended warranties are 
insurance policies, and these and long term care have some very high 
commission rates.

Back to my tying room

Peggy B

At 07:15 PM 10/22/2003 -0400, you wrote:

That's a pretty good racket to get into,
sell warranties on used vehicles and then yell "normal wear & tear," 
whenever
the owner files a claim!  I'd have to advise you against it based on my
experience.  I'd love to hear from anyone who's had a decent 
experience with this,
but I think the chances of that are slim and none!




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