ROLLED DEBT POLICY

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 Debt with the carriers is applied when a chargeback occurs. Chargebacks happen when a policy is canceled or lapsed within the first year of the policy being in place. Rolled debt means that it has been on your account long enough with no repayment (or a payment amount that is not sufficient enough per the carrier requirements) that the carrier has now put it on Melvin's account. When this happens, the carriers take either a portion of or ALL of Melvin's commissions to pay it back. If an agent rolls debt to Melvin, but wants to remain active, their top priority must be paying back the debt owed 

  For debt amounts that are extensive, we do not expect the entire amount to be paid in full as we know how much of a strain that can put on your business, but we DO need to see one or more of the following:   

1. Proof of payment plan with the carrier(s) that is sufficient enough to no longer deduct an amount from Melvin's commissions. 
2. Proof of a payment plan set up with Melvin directly. 
3. Receipt from carrier for payment in full. 

If you are an active agent and there is no effort in paying back the debt owed, you will be at risk of the following:

1. Termination of carrier contract(s) or being placed on as earned. 
2. Removal of some or all of your downlines. 
3. Compensation decrease.

If NO action is taken to make and maintain arrangements to correct the debt, we will move forward with above measures as an effort to protect the integrity & wellbeing of Vitabilis Life. 

We understand that some of this debt may have been rolled from YOUR downline. While that is unfortunate, it is as much your responsibility to collect as it is ours. In this case, we would highly suggest implementing a similar policy for your own agency.

Vitabilis Life Debt Update -

Effective November 1st, 2024: any agent that has a cumulative amount of debt with one or more carriers of $5,000 or above will be required to have a payment plan in place with each carrier debt is held with.

This is effective for ALL Vitabilis Life agents.

Even if the carrier does not require the payment plan or a payment reduction plan, you will be required to make payments to each carrier until the debt is below the $5,000 threshold. You must notify Logan via Logan@vitabilislife.com  of the payment plan details and email the monthly payment receipts.

If the cumulative debt exceeds $7,000,  all your carrier contracts will be placed on ‘As Earned’ until the debt is below the $5,000 threshold. This means you will no longer receive advanced commissions on each policy. Instead, you will be paid each month as the client makes their policy payment.

It is your responsibility to monitor your carrier back offices to maintain your client book of business, track your commissions and chargebacks. These three items are the base to your persistency with the carrier. If it drops below 70% - the carrier can and may terminate your contract. Our office will reach out the first Monday of each month if you are above the threshold.

**roll up debt is included in this policy. If debt was rolled from a downline, you will still be asked to provide proof of payment plan & proof of payments as the debt is now in your name.