Before you sign with any insurance agency, ask the recruiter how you’ll be classified (W-2 or 1099), where your leads come from and who pays for them, how commissions and chargebacks work, and what’s in your contract. These questions show you what the job really pays and costs, often before you’ve talked about anything else. A legitimate recruiter answers all of them clearly.
Written by the North Star Insurance Advisors recruiting team. We recruit licensed agents for remote, inbound final expense roles, and we’d rather you ask these questions than sign with anyone, including us, without the answers.
Why the questions you ask matter more than the pitch
Recruiting pitches are built to sell the upside. Your questions are how you find out the cost. Two agencies can both promise “high income and flexible hours” and offer completely different jobs once you see who pays for leads and what happens when a policy lapses.
The stakes are real. The Federal Trade Commission reported that job scam losses topped $220 million in the first six months of 2024 alone, after tripling from 2020 to 2023 (FTC, Dec 2024). Most insurance agencies aren’t scams. But vague answers to the questions below are the same warning signs scammers rely on.
The 12 questions at a glance
| # | Question | What you’re really finding out |
| 1 | Is this a W-2 or 1099 role? | Who pays your taxes and benefits |
| 2 | How are commissions paid, and how do chargebacks work? | Whether your paycheck can be clawed back |
| 3 | What does a typical new agent produce in 90 days? | Realistic income, not best-case |
| 4 | Where do the leads come from? | Whether you’ll be selling or prospecting |
| 5 | Who pays for leads, and how much? | Your real cost of doing business |
| 6 | Do I keep renewals if I leave? | Whether you’re building something you own |
| 7 | Which carriers will I be appointed with? | What you can offer clients |
| 8 | Are there any upfront fees? | Whether you pay to work |
| 9 | Is the focus selling or recruiting? | Whether it’s a sales job or an MLM |
| 10 | What’s in the contract? | What you’re bound to if you leave |
| 11 | What does training look like? | How fast you’ll be on calls |
| 12 | Who do I call when I’m stuck? | How much support you actually get |
Questions about pay and classification
1. “Is this a W-2 employee role or a 1099 independent contractor role?”
This tells you who pays your taxes and whether you get benefits. A W-2 employee has taxes withheld and may get benefits. A 1099 contractor pays both halves of Social Security and Medicare and handles quarterly estimated taxes. Neither is wrong, but you need to know which one you’re signing up for.
Good answer: a direct yes, with a plain explanation of what that means for your pay. Red flag: “It’s basically the same thing.”
Our guide to W-2 vs 1099 commission sales jobs walks through the tax math on the same income.
2. “How are commissions paid, and how do chargebacks work?”
Some agencies pay commission upfront as an advance before the client has paid much premium. If the policy lapses early, part of that advance is charged back from your future pay. Ask whether you’re paid on advance or as-earned, how long the chargeback window lasts, and what happens if you leave with an open balance.
Good answer: specific percentages and timeframes, ideally in writing. Red flag: “Don’t worry about chargebacks.”
3. “What does a typical new agent produce in their first 90 days?”
Ask for the typical new agent, not the top producer. Every agency has a star whose numbers show up in recruiting posts. You need the middle of the range to plan your finances during the ramp-up.
Good answer: a realistic range, plus how long most agents take to reach it. Red flag: only top-producer stories, or “it depends on you” with no numbers.
Questions about leads
4. “Where do the leads come from?”
Leads decide what your day looks like. Inbound leads are people who asked for information. Live transfers put an interested prospect directly on the phone with you. Aged leads and dial lists mean hours of cold calling. Ask which type you’ll work and what share of your day is talking versus dialing.
Good answer: a clear description of the lead source and type. Red flag: “We have plenty of leads” with no detail.
5. “Who pays for leads, and how much?”
Many agencies require agents to buy their own leads, sometimes before you’ve made a sale. Lead spending can quietly eat a big share of a new agent’s commission. Ask whether leads are provided, sold to you, or a mix, and what a typical agent spends each month.
Good answer: a specific policy (“leads are provided” or “you buy them at $X each”). Red flag: a required lead package you must buy before you start.
Questions about the agency and contract
6. “Do I keep my renewals and clients if I leave?”
Renewal commissions and ownership of your book of business decide whether you’re building long-term income. Some contracts vest renewals to you over time. Others keep everything with the agency. Final expense renewals are usually small, so this matters more in some lines than others, but you should still know the answer.
Good answer: a clear vesting schedule, or an honest “renewals stay with the agency.” Red flag: the recruiter can’t say.
7. “Which carriers will I be appointed with, and who handles contracting?”
Carrier appointments decide which products you can offer. More carriers usually means you can find coverage for more clients, especially those with health issues. Also ask who handles the contracting paperwork, since that can take weeks if you do it alone.
8. “Are there any upfront fees?”
Ask about training fees, software or CRM fees, E&O insurance, lead packages, and “starter kits.” Some costs are normal for independent agents, such as your own license fees. Paying an agency for the right to work for it is not.
Red flag: any large, non-refundable payment to “activate” your position. Our breakdown of work-from-home insurance sales scams lists the fee patterns to watch for and how to verify an agency in five minutes.
9. “Is the focus on selling insurance or recruiting other agents?”
A legitimate insurance sales job pays you for policies sold. If the pitch spends more time on building a team, recruiting friends, or earning overrides on other people than on serving clients, you may be looking at a recruitment-driven model. Ask what share of a typical agent’s income comes from their own sales.
10. “What’s in the contract?”
Ask to read the agent agreement before you sign and look for:
- Non-compete or non-solicitation clauses: can you sell elsewhere, or contact your clients, after you leave?
- Release terms: how you leave, and whether the agency releases your license appointment.
- Debt terms: whether you owe the agency money (for chargebacks or advances) if you leave.
A good agency gives you time to read it. Pressure to sign the same day is a warning sign.
Questions about training and support
11. “What does training look like, and how soon will I be on calls?”
Ask how long onboarding lasts, whether training is live or recorded, and whether you’ll shadow experienced agents. You want a clear plan from day one to your first sale.
Good answer: a defined onboarding path with dates or milestones. Red flag: “You’ll learn as you go.”
12. “Who do I call when I’m stuck?”
New agents get stuck on underwriting questions, applications, and tech issues. Find out whether there’s a named person or team you can reach during business hours, or only a ticket system and a group chat.
How North Star answers these questions
We think every recruiter should answer these questions without hesitating, so here’s where we stand on the ones the remote final expense agent role covers publicly:
| Question | North Star’s answer |
| W-2 or 1099? | Remote agents are 1099 independent contractors. |
| Where do leads come from? | Inbound live transfers. The prospect asked about final expense coverage and is on the line when the call reaches you. No cold calling. |
| Who pays for leads? | Inbound, qualified leads are part of what we provide. You don’t buy data lists. |
| Carrier contracting? | Handled for you by our team. |
| Training? | A complete onboarding program, from contracting to IT setup. |
| Who do I call? | A dedicated Business Advisor team, a real person, through your ramp-up and beyond. |
| Commissions, chargebacks, renewals, contract terms? | Ask us on your interview call. We’ll walk you through them in writing before you sign. |
Frequently asked questions
Ask whether the role is W-2 or 1099, where leads come from and who pays for them, how commissions and chargebacks work, whether you keep renewals, what upfront fees exist, what training looks like, and what’s in the contract. Clear, specific answers signal a legitimate agency.
Major red flags include required upfront fees or lead packages, vague answers about leads and pay, pressure to sign immediately, income claims based only on top producers, and a pitch focused on recruiting other agents instead of selling insurance. Any of these is a reason to slow down.
Many agencies require it, but buying leads before you’ve learned to close can cost more than you earn early on. Ask exactly what leads cost, how many a typical new agent buys each month, and whether any leads are provided. Inbound roles with provided leads remove that early risk.
A chargeback is when an agency takes back commission it already paid you because a client’s policy lapsed or was canceled early. It usually applies to advanced commissions. Ask how long the chargeback period lasts and whether you’d owe money if you leave with an open balance.
Neither is always better. W-2 roles offer withheld taxes and often benefits but usually less control. 1099 roles offer flexibility and often higher commission rates, but you pay self-employment tax and cover your own expenses. Compare the full package, not just the commission rate.
Ready to ask us these questions?
North Star hires licensed agents to take inbound final expense calls from home, with leads provided, carrier contracting handled, and a Business Advisor team behind you. Bring this list to your interview. Apply for a remote sales agent role and we’ll answer every question on it.
