Academic journal article Monthly Labor Review

Insurance Agents Settle

Academic journal article Monthly Labor Review

Insurance Agents Settle

Article excerpt

ance agents settle

Negotiators for the Metropolitan Life Insurance Co. and the United Food and Commercial Workers reached agreement on a new 3-year contract covering some 2,500 agents in 250 branch offices across the county. The contract reportedly calls for projected average wage and benefit increases of $15.99 a week in the first year, $36.42 in the second year, and $46.63 in the third year.

Under terms of the agreement, the commission, the core of an agent's compensation, is based on three factors: the size of the agent's "book-of-business" (the dollar amount of premiums associated with an agent's sales), the "persistency rate" (the degree to which the policies the agent sells stay in force, basically over a 10-year period), and an agent's first-year commissions. A revised "bonus expense reimbursement allowance," which will now pay a bonus based on the level of an agent's "production" over the minimum, was established effective January 1, 199 1. Effective May 1, 1990, full commissions on annuities or mutual funds purchased by beneficiaries with life insurance death claim proceeds became payable under certain conditions within the replacement period. …

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