Correcting Stereotype of Insurance Agent

The subject of rebates (“Insurance Commission Rebates at Issue,” May 12) does little more than fan the flames of the stereotyped life insurance agent. You know the “type”--badgering their customers, forcing them to buy something they do not want and on top of that being overpaid. Nowhere does your article discuss the ongoing realities of servicing the client and the realities of overhead expenses that exist for the agent.

When people do their due diligence, they will find that the quality companies rarely pay more than 55% in first-year commission. The average overhead as reported by the MDRT and other organizations reflect that 35% to 38% of gross income is required to support overheads. This means the agent is functioning just like any other small-business person with staff, rent, equipment and, yes, insurance of their own to pay. I do not believe there is a disproportionate share of wealthy insurance agents about.

Let us not confuse the issues of poor service, substandard carriers and ethics with the fiscal realities of running a quality business. There is no question that the insurance industry contains an abundance of poorly trained agents and inferior companies. However, rebates will do nothing to correct these important issues. Rather it is a punitive reflex to some real problems.

JEFFREY A. GERBER

Life underwriter

West Los Angeles