• Report: #1119268

Complaint Review: Liberty National

  • Submitted: Wed, January 29, 2014
  • Updated: Mon, July 21, 2014

  • Reported By: Joel — San Antonio Texas
Liberty National
223 W. Anderson Lane Austin, Texas USA

Liberty National Life Insurance Company They will keep half the money you earn. Austin Texas

*Author of original report: Thanks for pretending you know me.

*UPDATE Employee: Read your contract

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Whenever you make a sale they will tell you that half of your money will go into a commission account that you cannot access.  They tell you that this is a safeguard against any future businesses that may cancel their account.  THe money in your commission account will be used to pay the cancellation penalty so you don't have to pay you.  Once your commission account goes over a certain amount you will be allowed to keep all of your earnings.

They also tell you that you will receive the money from your commission account 3 months after you leave the company.  It has now been 7 months since I left the company and I have not received any of the money from my commission account.  I have tried emailing Rachel (the branch manager).  She told me that I needed to talk to Rex (the branch owner).  I emailed Rex and he simply forwarded my email to the customer service department of his corporate headquarters.  They replied back saying that my case has been sent to the field compensation department for review.  

In the email, the email address of the customer service is hidden and there is no phone number to contact them.  Just an email representative's first name.  Kisha.  It has been over a week since that email exchange and I have not heard any updates.  

They owe me about $1700.


This report was posted on Ripoff Report on 01/29/2014 09:30 AM and is a permanent record located here: http://www.ripoffreport.com/r/Liberty-National/Austin-Texas-78752/Liberty-National-Life-Insurance-Company-They-will-keep-half-the-money-you-earn-Austin-Te-1119268. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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REBUTTALS & REPLIES:
1Author 1Consumer 0Employee/Owner
Updates & Rebuttals

#1 Author of original report

Thanks for pretending you know me.

AUTHOR: Joel - ()

I worked there everyday for several months.  Don't try to tell me that I barely worked.  I went out to businesses every day.  Most of the time I went out with a senior person and whenever we made a conection, that senior person would take the case from me.  Even though I did all the leg work.  As far as the comission goes, they should tell you that up front instead of telling you that you get to keep it after you leave.  Three months after I left that job I finally got ahold of someone in the main office who explained to me what you said.  An agent doesn't get to keep their money from the commision account if they have been there less than a year.  So how come my manager or branch manager didn't tell me this when I started?  How come they didn't tell me this when I tried asking around about it?  Because they claim that they didn't know this.  Both of them told me that they were not aware of this fact.  How convient.

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#2 UPDATE Employee

Read your contract

AUTHOR: TylerM - ()

I have been an employee with the company for over six years, and it never ceases to amaze me that people will sign contracts that they do not read and then complain when things are different than they thought.  Liberty has an unpresidented compensation plan, that is way above industry standards.  And it is designed to allow a new agent to make a solid income.

That said to address your compliant.  Our contract, like many insurance companies explains how we are paid.  We are paid on an advance of what we would earn if a policy stays on the books for a full year.  This is funded by a no intrest loan from the company.  This is huge because 50 years ago it wasnt like that.  If you sold a $90 policy you would earn your commision on that months prem, so if you were paid 60% you would make $54.  And you would make $54 a month each month for a year. Try to make a living on adding up $54! It is why it used to be so hard to start in the industry.  So what Liberty (and many other companies ) do is they pay you an advance on the full years prem.  So instead of being paid on $90 you are paid on $1000.  This allows new agents the ability to start earning money fast.  Our contract clearly says that if you haven't worked over a year you do not get paid your left over commision account money.  Which makes sense.  Why would they pay you a whole years Salery on a sale when you were only there for 6 months?  You didn't earn it.  Plain and simple.  

The fact you said 50% went into your commision account tells me you barely worked.  Because it changes to 70% paid and 30% commission account after you close 2 cases.  Most agents close a case a week.  So you are complaining about not getting advanced money on future earnings on a sale that you probley were given in the first place.  They do not owe you $1700, the reality is they gave you more than you really earned on the sale in the first place.

This is is a quote from our contract.

Independent Agents who terminate with less than one year of continuous service, as of the date of contract termination, are not eligible to receive payments from their commission account unless termination is due to death or disability. Otherwise, terminated Independent Agents may be eligible to receive, subject to the vesting provisions of the Independent Agent’s Contract, payments from their commission account if the account remains positive after adjustment for amounts owed the Company. 

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