Online purchase

[SaiveMe]

Thanks for the help guys, I have decided to steer clear of this scam.

[Wing Nut]

Shady!

I'm a financial planner and am insurance licensed. In Alberta where I am (not sure if it's everywhere) it's illegal for an agent to pay any incentive to entice someone to take an insurance policy. Insurance is provincially regulated. I'd call the insurance commission in your province and ask if he's even registered. This should also be on their website. This sounds like a scam.

[YYC27]

I'd feel safer trusting that nice Nigerian fellow that keeps sending me e-mails. :P

[eshchan]

He stated that through commission he would pay my premium and still make money so in effect he's paying $500 less for the item.

aka $2000 commission $1500 premium = $500 for him


So for every insurance he sells he will get $2000 dollars in commission and only has to pay $1500 worth of premium? Doesn't that means the premium doesn't even cover the administrative fee?

if that's the case, he should starts selling policies to himself because it's a net gain every time.

[wheel]

It's called rebating and it's illegal everywhere in Canada.

[SaiveMe]

Can you please explain the idea of rebating?

And to the Nigerian prince comments, I probably should have mentioned that I have a mutual friend with this guy otherwise I would not even consider it.

eshchan the logic of it didn't make much sense to me either, which is why I was hoping someone who knows whats going on could explain the scam to me, and better yet who is being scammed (hopefully the insurance company and not me, they have a lot more money:D )

[Wing Nut]

Rebating is any incentive provided to encourage someone to take insurance. I doubt this guy is even licensed. If he is, he won't be for long. Run. Away. Fast.

[chenwaa123]

I'm also a license Insurance Broker in BC....and I'd run the other way. I hate the weird sales gimmicks; they cheapen the industry and make it hard for someone like me to do my job in a professional way.

If possible, please put him in a muay thai clinch and give him a few knees to the head on my behalf.

[SaiveMe]

thanks for the input

[SaiveMe]

imput*

[YYC27]

well from what I have read online about rebating it appears to be a frowned upon and illegal but seldom unforced practice.

So what is the risk to me?

Sounds to me like some cheap guy risking his license to save a few bucks.

To me it comes as an extra payment on my boat, $5000 and life insurance for 2 years, how can I say no?

All I have to do is pass a medical

Alright .. is 2 years of life insurance worth being complicit in this guy's crime?

[GSRee]

well from what I have read online about rebating it appears to be a frowned upon and illegal but seldom unforced practice.

So what is the risk to me?

Sounds to me like some cheap guy risking his license to save a few bucks.

To me it comes as an extra payment on my boat, $5000 and life insurance for 2 years, how can I say no?

All I have to do is pass a medical

The risk to you is that your name is on the contract, so if he decides not to pay, you're on the hook for $1500.

If you really insist on doing something you've already researched and found is illegal, I'd suggest you tell him you want $6500. That way you can pay the policy yourself, and not have to worry about him screwing you.

[tjthemanto]

I am selling an item online for $5000. Today some guy came by my house to check it out. He agreed to pay $5000 if I signed some life insurance policy for 2 years. Being only 17 yrs old I am a little concerned about this guys deal. He stated that through commission he would pay my premium and still make money so in effect he's paying $500 less for the item.

aka $2000 commission $1500 premium = $500 for him

My question is does this sound legit? He said I might have to do a medical and stuff which I have no problem with I just do not want to end up in financial debt after signing a 50 page life insurance contract not even a lawyer has time to read.

Suggestions to ensure a smoother transaction are more appreciated because this item has been hard to sell.


Thanks for any input you guys can provide

How does someone get a $ 2,000 commission for selling a $ 1,500 policy ?

How does the insurance company make any money on that if they pay their salespeople that kind of commission or rebates ?

Plus the insurance company has the added risk of something happening to you in those 2 yrs ?

[wheel]

right?
Uh, dude. Couple o' things.

First, I doubt it's seldom enforced. If the provincial authorities get word of this they'll kick his @ss up between his shoulder blades so hard he'll be picking crap out of his hair. Don't think this is like downloading a song from limewire. Rebating will make the law very, very pissy. If you have any ethics at all you do not want to be party to this.

Secondly, you're going to swing two parts of a deal. One part, you already know he's willing to screw somebody over and break the law. You're dealing with an admitted crook. But your $5000 half of the deal, that's going to go down smooooooth, right? Ah, OK. Good luck. Did you know they took the word naive out of the dictionary? Seriously - go look it up.

[SaiveMe]

Uh, dude. Couple o' things.

First, I doubt it's seldom enforced. If the provincial authorities get word of this they'll kick his @ss up between his shoulder blades so hard he'll be picking crap out of his hair. Don't think this is like downloading a song from limewire. Rebating will make the law very, very pissy. If you have any ethics at all you do not want to be party to this.

Secondly, you're going to swing two parts of a deal. One part, you already know he's willing to screw somebody over and break the law. You're dealing with an admitted crook. But your $5000 half of the deal, that's going to go down smooooooth, right? Ah, OK. Good luck. Did you know they took the word naive out of the dictionary? Seriously - go look it up.


Thanks for the input, your post is mostly the reply I was looking for. I have decided to steer clear of this deal. As for naive: careful how you go painting people with the same brush.