U.S. life insurance agents will have to earn a little more this year to qualify for the 2005 Million Dollar Round Table.
The Park Ridge, Ill., agent association said it has increased the U.S. production requirement to $67,400 in eligible commissions, or $134,800 in eligible premiums or new money invested.
Each year, the production requirements are raised by the consumer price index for each country. Last year, to qualify in the United States, agents were required to produce $66,000 in eligible commissions or $132,000 in eligible premiums.
To qualify for the 2005 Court of the Table status, agents must produce 3 times the amount required for initial MDRT qualification. That is $202,200 in eligible commissions or $404,400 in eligible premiums. To reach Top of the Table status, agents must produce at least 6 times the initial production requirement, which comes to $404,400 in eligible commissions or $808,800 in eligible premiums.
At least 50% of the production amount must come from sales of any of the following product types: individual or group life insurance, accidental death and dismemberment insurance, annuities, disability income insurance, pensions written by life insurance companies, long term care insurance, and critical illness insurance. The balance may come from sales of mutual funds, securities, wrap accounts, health insurance and pensions from companies other than life insurance companies.
In addition to meeting the production requirements, prospective members must belong to a professional association. The association must be an individual membership, nonprofit association with no specific company affiliation. The focus of the association must be on insurance or financial services, and it must have at least 100 members and have been in existence for more than 2 years. Furthermore, the association must have an enforceable code of ethics.
Reproduced from National Underwriter Life & Health/Financial Services Edition, January 23, 2004. Copyright 2004 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.