I just received a letter for an insurance co. that I used to work for about an unpaid balance due to chargebacks. If I do not pay the balance the account will transfer to a 3rd party and/or seek legal action. They may also report it to various Credit agencies and report it to the IRS. Can they really do this? And what is the best way to fight this? Thanks!

I will assume you worked for them in the last 2 years.

When you are paid, your commissons would have been paid on annual payment, so you are paid today for them paying the premium 12 months from now, so you are paid money you have not really earned yet.

This is called an advanced commission. Some companies take part of your commission into a fund to help pay this others merely hold any current policiy cancells out of your current check ( the charge backs)
But after you quit, yes if any charge backs happen, you have to legally pay them back, since that was for advanced commission on people who drop their policies.

Depending on the commpany some have higher numbers of people who do not keep their policy for a year, Others have few, on the policies I sell I run less than 5 percent but I know some companies that run as high as 20 or more percent of the people who buy the policies don't keep them for a full year

There is no way to fight it, unless you can prove the policy was already in effect for the full year, prove they did not cancell the policy, and/or prove you were not being paid advance commissions.

This is just how most life and healh insurance agents are paid, it will be in your contract.

Thank you, I actually made it only 7 months! Just wasn't making the money they told me I would.