The following are the guidelines by which AFC conducts business.  You will need to become familiar will all of the contents herein, and you are required to sign a copy of this form which is part of the NEW HIRE contracting paperwork in order to be qualified to receive/continue to receive advances/leads.  Original signature is required to be submitted with your AFC Contracting.

Commissions             New Business             Leads

1.  ADVANCE COMMISSION GUIDELINES

A. Payment Mode

Applications must be set up for initial and subsequent monthly premium payment by automatic bank or credit card draft in order for the application to be eligible for advance. Advance status on new business is assigned as applications are SUBMITTED. Payment mode changes after submission of the original application are eligible for review by AFC Accounting for advance reversals if the case is changed from EFT or Credit Card to direct billing within the first 6 months after the policy is issued.

B. Advance Commissions

Commission checks are cut each week on Thursday, and mailed out Thursday night for regular mail delivery. (Some exceptions are made for requested overnight mailing by Level 1 and Level 2 Managers only with a minimal charge.)

C. Rate of Advance

The rate of advance varies by product, and agent advance status. Check with your Manager for un-posted commission level rates.

D. Requirements

In order to retain an active contract with AFC, regular production is required; i.e., at least one application must be submitted every 60 days. To remain eligible for advance commissions/leads, at least one major medical application per month must be submitted. Short-Term applications are not counted for this eligibility requirement.

E. Telephone Verification

All applications must be verified by AFC before advances can be processed. If a Delivery Receipt is received by 9am EST, is verified, and is eligible for Advance, (e.g., mthly bank draft or credit card), then that issued policy will be advanced that same week on Thursday.  Submit Advances will be processed same week, assuming that the application(s) was submitted by Noon (12:00pm) on Monday of the same week, upon review of submitting Agent's current accounts, and according to eligibility.

Every Agent who turns in a Certificate of Delivery must first make sure that the client has the policy in-hand prior to sending the delivery receipt to AFC; and that the Agent has reason to believe that the client intends on keeping the policy. Any Delivery Receipts that are verified as Undelivered will be subject to review by The AFC Group and the Agent’s commission on that case will be paid as Earned.

F. Personal Business

Business on the agent or the agent's family, friends, or another AFC agent will be paid as Earned.

G. Third Party Payer

In order to be eligible for advance, each application must have its own individual premium check. AFC will not advance on business that has more than one application covered by one check. Multiple applications submitted with individual third party checks would be eligible for advance on placement. List Bills are not advanced.

H. Misrepresented Applications

Applications that have either omitted significant medical information or have misstated information will not be advanced. AFC requires agents to ask and carefully record the answers to all questions on the application.

If a Submit Advance application is not placed, the full amount of the initial Submit Advance will be reversed or charged back. This will reflect as a negative on the Agent’s Commission report and will reduce the first available funds by the unpaid amount.  This excludes those agents who have opted to establish a Reserve Account to cover such charges. 

3. WHEN ARE CHARGE BACKS ASSESSED?

Chargebacks on Submit Advance applications not placed within 3 months of the date of the submission will be charged against the agent's next available funds. If anyone on the application is declined, the advance will be reversed and the case will be eligible for reinstatement of advance upon ISSUE. If there is a problem with the initial premium draft, e.g. credit card declined, the advance will be reversed and will be eligible for reinstatement upon issue and premium payment verification with the carrier. If the issued policy closes within the first 6 months after issue, the case is charged back on a pro-rated basis. Chargebacks are levied only when the case violates any of the above rules. The best way to ensure against chargebacks of advances is to verify premium payment mode, supply underwriting requested information to the carrier as soon as possible, and to monitor the persistency of your issued business.  Also, there is account safety in establishing a Reserve Account for just such fees as might occur at one time or another.

 

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1.  WHEN TO SUBMIT APPLICATIONS

All applications with any of AFC's endorsed carriers must be sent to AFC's home office and must be received no later than 9:00 am eastern standard time on Monday morning to be considered for that week's production. (If agent or manager is using an overnight service, exceptions will be made for delivery time as long as it is delivered no later than 11:00 am eastern standard time Monday.)

The manager's office will make the determination as to whether they wish their agents to send their business in direct to AFC's home office, or whether the agent will turn-in to the manager's office who will then send the business to AFC.

All applications must be submitted through AFC's home office so that they can be recorded for commissions. If an application is not submitted through AFC's home office, when the carrier releases commissions on the application, AFC will not know who the agent is for commission purposes, nor will the agent be eligible for leads or advances for that application.

NOTE: Short term applications may be submitted directly to the carrier due to the usual effective dates constraints, but a complete copy including a copy of the check must be sent to AFC's home office within one week. (this can be faxed due to the nature and urgency or Short-Term applications.)

If the agent knows that the application is not complete, it is not to be sent to AFC's home office. All incomplete applications will be returned to the manager's office, where applicable, or directly to the writing agent.

AFC's home office checks all new business for errors. If for any reason an application goes to the carrier incomplete, AFC will not be held responsible, or liable in any manner. It is the responsibility of the agent to make sure his/her business is complete, and correct. All incomplete applications will be returned to the writing agent via his/her manager, where applicable.

Applications Will Be Returned to Your Manager:

If any form is missing.

If a question is not answered on the application

If an agent knowingly sends in an incomplete application.

If an agent does not include his/her agent name and writing number on the application after the above information has been sent to the agent, and the request for the agent to use the number has been made.

If there is obvious cause to believe that the application will be declined by the carrier, unless otherwise directed by an agent note attached to the application.

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1.  WHO RECEIVES LEADS?

All agents within AFC are eligible to receive leads on most AFC endorsed individual products.

2. HOW MANY LEADS DOES AGENT RECEIVE?

The writing agent will receive 2 leads for every $1,000.00 of commissionable annualized premium, (max. of 6 leads per case), on individual major medical application of the below listed carriers:

The AFC Group, Inc.—AFC Proprietary CompleteCare

HealthVantage Plus, QualSaver & Best Choice

Note: No leads will be furnished in instances where in AFC or the Carrier's opinion, receipt of the policy is not verified; or the client has reservations about keeping the policy.

3. HOW TO FIGURE THE NUMBER OF LEADS FOR EACH APPLICATION?

EXAMPLE

1. Monthly commissionable premium of individual applications X 12 

2. Divide No. 1 by 1,000 

3. Multiply No. 2 by 2 = 10, max. 6 leads per case 6

4. Number 3 will give you the total number of leads you would receive.

All information on each lead is guaranteed to be correct, and up-to-date. Each lead is asked whether they or anyone that will be covered has had a heart attack, or has cancer, diabetes, or is currently pregnant. All of these questions should be answered 'NO' for the lead to be considered a qualified lead. If the lead is found by the agent not to be qualified, it must be returned within 3 weeks of receipt at the manager's office for the lead to be considered for replacement. Health qualification exceptions will be made in group situations.

NOTE: Understand that every effort is made to make sure all leads are of the highest standard, but on occasion some bad leads will get through the system, please return these leads for replacement.

5. SOLD LEADS

AFC requests that all sold leads be returned to AFC's home office when the application is submitted so that these leads can be removed from the system.

6.  LEADS FOR NEW AGENTS

AFC offers to each new agent the option to purchase 10 leads at a reduced cost of $12.00 per lead at the time the agent is appointed with AFC. This purchase is to be made via certified check or money order for the initial purchase. Subsequent lead purchases for established writing agents are at $9.00 per lead for proven writing agents, and can be made via personal check or money order.  First-time lead purchases must be made via money order or cashier's check.

7. WHEN ARE LEADS ORDERED

All lead orders are submitted to the telemarketing room on Tuesday mornings. Those leads are received the following Thursday (9 days later) and mailed out that day to each agent due leads.

There are no charges associated with leads except in situations where leads are given on a policy that is not active through 12 months. For any policy that lapses in the first 6 months, all leads issued will be reversed. For any policy that lapses from months 7-8, 75% of all leads issued will be reversed. From 9-10 months, 50% of all leads issued will be reversed. From 11-12 months, 25% of all leads issued will be reversed. All reversed leads will be assessed against future leads due. However, if after 1 month these reversals are not offset, then these outstanding leads will be charged at a cost of $15.00 per lead and assessed against the agent's account.

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11 South Guilford, Carmel, IN  46032    Phone:  1-800-813-2385    Fax:  1-775-243-7659

The American Financial Consultants Group, Inc.  Copyright © 1999 [The AFC Group, Inc.]. All rights reserved.  Revised: June 29, 2007 .