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Jadow Rao · May 30, 2008, 09:15 AM

My son who was working for an insurance company, was denied his insurance sales
Commission and I wish to contact small claims court regarding filing a complaint and
Get the commission. Thanks

progunr · May 30, 2008, 02:36 PM

Many commission and bonus or incentive plans are subject to continued employment.

If he quit, or got terminated, it could very well be the company policy that they do not pay these incentives.

All you have to do to file small claims is go pick up a blank original notice at your county courthouse, small claims division.

Fill in the original notice, and decide how to have it served, by sheriff, constable, or other process server, or certified mail.

This may be difficult, who to sue, an individual, or the company, but keep in mind, small claims limits are fairly low, around $3000 or less.

Also, if this is a big company, with unlimited assets, all they have to do is pay a fee, usually about $100, to bump the small claims case up to civil court where you would have to hire an attorney to continue with your suit.

Good luck to you.

Fr_Chuck · May 30, 2008, 02:44 PM

Ok first you can't do anything, if your son wants to sue, he can sue, but you can not sue for him.

Next what commissions, I will explain a basic idea, first real commission is only on earned, so if a person is paying monthly, the salesman only earns that one months commission, but most insurance companies, pay for advanced commissions, some pay a full year, others pay 6 to 9 months and place the balance into a fund that will be used in case there is people who cancell,

So when a person quits, they do not get paid any of that account until a year is over and then only if there is money left. In fact if enough people cancell their insurance, he could even owe them money that he has to pay back for advanced commissions paid.

You will have to explain in more details what commissions you are talking about

twinkiedooter · May 30, 2008, 04:11 PM

Chuck that was a great explanation of how the commission with insurance companies work. Well, you should know - you've done it long enough to understand that the salesman can end up owing the company money at the end of the year. When I worked for an independent life insurance agent the same thing happened to him. He owed them. He was able to absorb the cost as he wrote policies for over 25 different big name companies. It was only when the policy was new and the people cancelled after a few months coverage that this would happen.

Fr_Chuck · May 30, 2008, 04:13 PM

Yes, I am just coming off a contract with one, and with the drop off rate last year I would have owed them 1000 this month. So I went out and sold a few policies, to cover it.