System and method for paying and receiving agency commissions

• US 20080040163A1
• Filed: 12/13/2002
• Published: 02/14/2008
• Est. Priority Date: 12/13/2002
• Status: Abandoned Application

• Current Assignee: Bank One Delaware National Association (JP Morgan Chase & Co)
• Original Assignee: Bank One Delaware National Association (JP Morgan Chase & Co)
• Inventors: Hague, Steven Riley, Harlin, James Lacy, Sharpe, John Thomas
• Application Number:
  US10/318,223
• Publication Number:
  US 20080040163A1
• Time in Patent Office: Days
• US Class Current: 705/4
• CPC Class Codes: G06Q 30/04 Billing or invoicing
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

A system and method for paying a commission to an insurance agent is provided. The method comprises receiving a trail commission from an insurance company, the trail commission being related to or based on a premium paid by a consumer in connection with a product sold by the insurance agent. Next, the method comprises paying the insurance agent the commission in exchange for services provided to the consumer. The invention also comprises a system for paying a commission to an insurance agent. The system comprising an intermediate managing agent interposed between the insurance agent and an insurance company, the intermediate managing agent receiving a trail commission from the insurance company, the trail commission being related to or based on a premium paid by a consumer in connection with a product sold by the insurance agent, the intermediate managing agent further paying the insurance agent the commission in exchange for services provided to the consumer.

Claims

1. A method for paying a commission to an insurance agent, the method comprising:

receiving a trail commission from an insurance company, the trail commission being related to or based on at least one of a premium, a policy account balance, or a policy value amount paid, owed, or held by a consumer in connection with a product sold by the insurance agent; and

paying the insurance agent the commission in exchange for services provided to the consumer.

2. The method of claim 1 wherein the trail commission comprises a plurality of payments paid out over a period of time.

3. The method of claim 2 wherein the period of time comprises the life of the product sold.

4. The method of claim 2 wherein the period of time is predetermined.

5. The method of claim 1 wherein each individual trail commission payment is less than the commission paid to the insurance agent.

6. The method of claim 1 wherein the total amount of trail commission payments is greater than the commission paid to the insurance agent.

7. The method of claim 1 wherein the up-front commission is paid to the insurance agent before the trail commission is received.

8. The method of claim 1 further comprising the step of receiving a charge-back from the insurance agent in the event the product is terminated or canceled early.

9. The method of claim 1 further comprising the step of receiving a surrender termination fee from the insurance company in the event the product is terminated or canceled early.

10. The method of claim 1 wherein the commission paid to the insurance agent is financed through a lending institution.

11. A method for paying a commission, the method comprising:

paying an intermediate managing agent a trial commission, the trial commission being related to or based on a premium paid by a consumer in connection with a product sold by an insurance agent.

12. The method of claim 11 wherein the trail commission comprises a plurality of payments paid out over a period of time.

13. The method of claim 12 wherein the period of time comprises the life of the product sold.

14. The method of claim 12 wherein the period of time is predetermined.

15. A method for receiving a commission, the method comprising:

receiving the commission payment from an intermediate managing agent in exchange for services rendered to a consumer in connection with the purchasing of an insurance company product.

16. The method of claim 15 further comprising the step of paying to the intermediate managing agent a charge-back fee in the event the product is canceled or terminated early.

17. The method of claim 15 wherein the charge-back fee amount decreases with time.

18. The method of claim 15 wherein the commission payment is financed through a lending institution.

19. The method of claim 15 wherein the intermediate management agency receives a trail commission from the insurance company.

20. A system for paying a commission to an insurance agent, the system comprising:

an intermediate managing agent interposed between the insurance agent and an insurance company, the intermediate managing agent receiving a trail commission from the insurance company, the trail commission being related to or based on a premium paid by a consumer in connection with a product sold by the insurance agent, the intermediate managing agent further paying the insurance agent the commission in exchange for services provided to the consumer.

21. The system of claim 20 wherein the trail commission comprises a plurality of individual payments paid out over time.

22. The system of claim 21 wherein the period of time comprises the life of the product sold.

23. The system of claim 21 wherein the trail commission is paid periodically.

24. The system of claim 21 wherein the period of time is predetermined.

25. The system of claim 21 wherein each individual trail commission payment is less than the commission paid to the insurance agent.

26. The system of claim 21 wherein the total amount of trail commission payments is greater than the commission paid to the insurance agent.

27. The system of claim 20 wherein the commission is paid to the insurance agent before the trail commission is received.

28. The system of claim 20 further comprising the step of receiving a charge-back from the insurance agent in the event the product is terminated or canceled early.

29. The system of claim 20 further comprising the step of receiving a surrender fee from at least one of the consumer and the insurance company in the event the product is terminated or canceled early.

30. The system of claim 20 wherein the commission is financed through a lending institution.

31. A method for paying a commission to an insurance agent, the method comprising:

receiving a trail commission from an insurance company, the trail commission being related to or based on at least one of a premium, a policy account balance, or a policy value amount paid, owed, or held by a consumer in connection with a product sold by the insurance agent;

paying at least one general managing agent some portion or all of the commission; and

paying the insurance agent some or all of the commission in exchange for services provided to the consumer.

32. A method for paying a commission to an insurance agent, the method comprising:

receiving a trail commission from an insurance company, the trail commission being related to or based on at least one of a premium, a policy account balance, or a policy value amount paid, owed, or held by a consumer in connection with a product sold by the insurance agent; and

paying at least one general managing agent and an insurance agent some portion or all of the commission.

33. The method of claim 32 wherein the general managing agent receives some or all of the commission from the insurance managing agent and pays some or all of the commission to at least one of a second general managing agent and the insurance agent.

34. A method for paying a commission to an agent, the method comprising:

receiving a trail commission from a participant; and

paying the agent the commission.

35. The method of claim 34 wherein the participant comprises an individual, company, corporation, partnership, organization, association, or other entity.

36. The method of claim 34 wherein the agent comprises an individual, company, corporation, partnership, organization, association, or other entity.

37. A system for paying a commission to an agent, the system comprising:

an intermediate managing agent interposed between the agent and a participant, the intermediate managing agent receiving a trail commission from the participant and paying the agent the commission.

38. The system of claim 37 wherein the participant comprises an individual, company, corporation, partnership, organization, association, or other entity.

39. The system of claim 37 wherein the agent comprises an individual, company, corporation, partnership, organization, association, or other entity.