This is a common question that comes up when contracting an agent with multiple hierarchies.
Does the Immediate Hierarchy need to sign in order to be included in the hierarchy structure? Or does the Top Line Hierarchy need to sign?
Producer is doing business as an Individual. This means the producer will receive commissions to them personally, and receive a 1099 to their SSN at the end of the year.
Who Signs as the RECRUITER: The answer is ANYONE in the hierarchy above the Individual Producer can sign as the Recruiter.
Producer is doing business as a "Licensed Only Agent", also know as "Solicitor". This means the producer is requesting to be appointed, but commissions are paid to someone else (either Business or Individual).
Who Signs as the RECRUITER: The answer is The DIRECT UPLINE in the hierarchy must sign as the Recruiter.
Applicant is DBA as a Business Entity. This means the Individual is an owner/officer of an agency, and will be assigning commissions to his/her company. 1099 will be applied to the TIN for the Agency at the end of the year.
Who Signs as the RECRUITER: The answer is ANYONEin the hierarchy above the Business Entity can sign as the Recruiter. The signing officer for the Business Entity being contracted cannot sign on behalf of himself.
How will the carrier know who is included in the full hierarchy?
Based on the Direct Upline Agent Code listed on the Recruiter Page of the contract, American General will be able to track ALL upline heararchies and their compensation structure assigned.