COMMISSION PLANNING
By Phil Calhoun
As we enter another year, we remain committed to our goal which is to educate health insurance professionals about the risks they face with their commissions and the solutions to Protect, Grow, and Sell Commissions.
To help accomplish this goal in 2026, we have scheduled more educational webinars during the peak planning season, from January to June. We feel to properly do commission planning, one needs to get started in the first quarter of the year and then move through the learning process to implement either a Commission Protection Plan if staying active or move through to complete a Purchase Agreement with a Buyer to sell their book of business.
To help with the learning process, we have recorded several commission planning success stories which are accessible in our website library. With 12 years of experience with commission planning, we have provided solutions and educated thousands of California health insurance professionals.
Our mantra is that most every health insurance professional from solo independent agents and brokers to general agencies and FMOs, have commissions at risk; so, planning is needed. We plan to continue to beat the drum about the risk to commissions and help colleagues learn about the risks and solutions. The commission planning tools help solo agents and brokers, FMOs, and General Agents help their subagents in a win-win solution that places health commissions in a position where there is no longer a risk.
Our commission planning process enables active brokers to be in control of the decision “When to retire” or “When stay active.” New for 2026 is how we include in our planning work the support to do a complete evaluation of retirement income and taxa mitigation strategies. We have partnered with subject matter experts in estate planning, asset protection, and retirement income areas which are key to decisions while active in the business and also after the sale of commissions. Our webinars on these topics will open new planning opportunities and give control to the timing decisions on when to sell. Finally, we have a revenue enhancement and readiness to sell survey tool we will cover.
If you want to search our new commission planning topics, please review our 2026 webinar series. When each webinar is completed, we post the recorded webinar in our Commission Solutions library.
More? Should you want to learn more, you can either request our book A Health Brokers Guide to Protect, Grow and Sell Health Commissions. You can also schedule a 15-minute call and get your questions answered.
Our mission is to help health insurance agents and brokers protect, grow, and sell their commissions for the highest value.
From Active Producer to Retiree – Mary’s Exit Story
When longtime broker Mary Fogleman finally decided it was time to retire, she knew one thing for certain: she could not just walk away from her clients. She had spent decades building deep relationships and felt a duty to protect them as she exited production. That mindset will resonate with many California brokers who are wrestling with succession planning while still servicing active books.
From vague idea to real plan
Mary did not rush into retirement. For years, she kept a file of ideas on how she might eventually transition her book because she had never sold a business and did not know where to start.
Her first instinct was a family succession and she hoped one of her children would take over the practice, but that option ultimately did not work out. She next experimented with referring new clients to another independent agent she respected as she gradually slowed down production.
Choosing the right buyer
The turning point came when Mary revisited an old contact: Integrity Advisors and CEO Phil Calhoun. She remembered that Phil had been interested in buying agencies and books of business, and she identified him as a serious third option.
Mary applied clear criteria that any seasoned California broker would recognize. She wanted a buyer with a track record of purchasing books, written agreements already tested in the marketplace, and enough staff capacity to actually service her sizable block. Just as important, she wanted someone close enough and engaged enough to meet with clients who needed in-person support—not just phone service.
“I realized I had to sell my business. I have to take care of my clients.”
Negotiating the deal
Reviewing the purchase agreement initially felt daunting because the contract included many details Mary wanted to refine. Yet she describes the negotiations as easy and says she felt comfortable throughout the back-and-forth process.
Having an existing deal template and proven structure made the legal side far less intimidating for a first-time seller. Mary could focus on adjusting terms rather than drafting documents from scratch, and she ended up satisfied with the final agreement.
Transfers and commissions made simple
For many California brokers, the scariest part of an exit is commission transfer across multiple carriers and platforms. Mary fully expected a nightmare and told her husband she assumed it might take years to clean everything up.
Instead, the process surprised her. She says the transfers went smoothly across carriers and happened far faster than she had imagined which she attributes to the buyers experience managing carrier specific requirements. She describes the result as beautiful and still finds it hard to believe how efficient it turned out to be.
“I looked at it as a nightmare, and it did not take that long. I was completely surprised how smooth it went.”
“Our mission is to help health insurance agents and brokers protect, grow, and sell their commissions for the highest value.”
Getting paid with transparency
Mary also highlights payment transparency as a key satisfaction point. Each month, she receives a detailed statement listing clients, carriers, and total commissions along with the exact split between her and the buyer.
She notes that she never had to chase a check or question a line item on a statement. For brokers considering a structured payout, this level of reporting and reliability can be a practical benchmark when evaluating potential buyers.
Proof that clients stayed protected
Perhaps the most telling metric for Mary was the number of calls she received from clients after the sale. With hundreds of accounts, she expected complaints or confusion, yet only a handful of clients contacted her, and those calls were more like requests for a second opinion than problem reports.
Mary credits the Integrity Advisors team, including Jennifer and David, for proactively reaching out to clients and handling service issues with care. For brokers who see their book as a legacy, her experience is a reminder that choosing a buyer with a seasoned service team can be as important as purchase price.
“I judge how your team is handling my book of business by the number of calls I get and I was amazed how few calls I received.”
Thank you, Mary, and we wish you a Happy New Year.
Phil Calhoun is the owner and publisher of California Broker Magazine. Phil also is a leader in coaching health insurance professionals. He is an active member of several insurance associations including the California Association of Health Insurance Professionals (CAHIP) and local chapters in Orange County, Los Angeles, San Diego and Inland Empire Health Insurance Professionals. He attends many state and local California chapter meetings.
Phil’s book, “The Health Broker’s Guide: To Protect Grow and Sell Commissions” is available free at www.healthbrokersguide.com.
Phil offers complementary 15-minute coaching sessions to help brokers get answers to questions about how to protect, grow and sell their health commissions. To schedule a FREE phone call “Click Here”
Contact:
714-664-0311
Featured in our January Special Issue 2026 page 48 – Click here to download!