2010 Membership Requirements
2011 Membership Requirements
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2010 Membership Requirements
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1. PRODUCTION REQUIREMENT
Membership in the 2010 Round Table will be based on a minimum of USD 87,900 of eligible commissions paid or USD 175,800 eligible paid premium credited to the agent's account. At least one-half (50 percent) of the production requirement must come from products listed in the Unlimited Credit category (USD 43,950 commissions or USD 87,900 premium). This serves as a threshold that must be crossed before an applicant can use any credit from the Limited Credit category.
Clarification of Unlimited and Limited Credit
- At least one-half (50 percent) of the production requirement must come from products listed in the Unlimited Credit category. (See Item 4)
- This serves as a threshold that must be crossed before an applicant can use any credit from the Limited Credit category.
- Once crossing the threshold, applicants may use all of credits from Limited Credit products to meet the MDRT requirement. The 2010 commission requirement for the United States is USD 87,900. To qualify, the applicant must submit a minimum of USD 43,950 in commission from products listed in the Unlimited Credit category.
Example 1 - Eligible for MDRT membership
| Applicant total Unlimited Credit |
|
43,950 |
| Applicant total Limited Credit |
|
100,000 |
| Total MDRT commission credit |
|
143,950 |
Example 2 - NOT eligible for MDRT membership
| Applicant total Unlimited Credit |
|
43,949 |
| Applicant total Limited Credit |
|
100,000 |
| Total MDRT commission credit |
|
43,949 |
Please note:
- The 50 percent threshold applies regardless of whether commission or premium is used to qualify for membership.
The 2010 production requirements for applicants outside the United States are expressed in local currency. All commission and premium credit reported must be converted to U.S. dollars using the MDRT conversion factor when applying for membership. Country production requirements and conversion factors are located at the end of this document. Please note: Applicants must choose to apply using only commission/fee credit or only premium credit. Only one form of credit will be accepted.
Please note: Applicants must choose to apply using only commission/fee credit or only premium credit. Only one form of credit will be accepted.
2. ELIGIBLE COMMISSIONS, FEES
Production credit for commissions will be based on eligible commissions received during 2009. They may include either earned or advanced (annualized) commissions or both. Advanced (annualized) or earned commissions must be paid to the applicant in 2009 to be eligible for MDRT credit. Please note:
- Commissions paid on a levelized basis may be reported using the present value of up to the first five years' commission discounted at 10 percent per year, not to exceed 55 percent of first-year premium.
- Annualized commissions may be reported for credit if paid, but any chargeback of annualized commissions in a subsequent production year will result in a reduction of that year's production credit.
- If commissions are paid as earned, a policy effective in 2008 may result in production credit for 2009. The policy must be in force on December 31, 2008, but is not required to be in force as of December 31, 2009.
- Commission credit for pensions is based on the product used to fund the pension (life insurance, annuities, mutual funds, etc.) which determines whether it receives Unlimited Credit or Limited Credit.
- Commissions that are part of a deferred compensation program may be claimed up front for MDRT credit, provided that they are not claimed again in later years.
- Life insurance policies that exceed the annual premium or target premium are eligible for credit. First year commission credit may be given in the Unlimited Credit category for the commission paid on the amount up to the annual/target premium. If the annual/target premium is exceeded, commission credit may be given in the Unlimited Credit category for the commission paid on the amount that exceeded the annual/target premium.
- Override commissions, training allowances, bonuses and other sales or expense allowances do not qualify.
- Fees paid on the placement of a product are eligible for credit toward the commission requirement, as are asset management fees for mutual funds and wrap/asset management accounts. To be eligible, the fee must be paid by a company (See Item 10). Maintenance, service and other fees do not qualify. The type of product placed determines the type of credit the product receives (Unlimited or Limited).
- Financial Planning Fees/Fees for Advice are eligible for Limited Credit. Fees must be documented by certifying letter signed by a company official, a broker dealer official, or a Certified Public Accountant (or equivalent).
- Group health insurance commissions are eligible in the first year of the policy only. Additions to the group in subsequent years are not eligible for credit.
- Single premium and/or short-term endowment commissions are only eligible in the first year of the policy. Short-term endowment riders (max 15 years) to life insurance policies are eligible for 100 percent of first-year commissions in the Unlimited Credit category.
- Long-term endowment commissions are only eligible in the first year of the policy. Long-term endowment riders (16 years or more) to life insurance policies are eligible for 100 percent of first-year commissions in the Unlimited Credit category.
3. ELIGIBLE PREMIUM
Production credit will be based on eligible premium paid or new money invested during 2008. Please note:
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If commissions are paid as earned, premium credit should be given only for the amount of premium actually received during the production year.
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If commissions are annualized, the premium credit should also be annualized. Any chargeback of annualized commissions should result in a reduction of that year's premium credit also.
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A policy that becomes effective in 2008 may result in production credit for the amount of premium paid or new money invested during 2009.
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Life insurance policies that exceed the annual premium or target premium are eligible for credit. Premium credit may be given in the Unlimited Credit category up to the amount of the annual/target premium. If the annual/target premium is exceeded, credit may be given in the Unlimited Credit category for 6 percent of the amount that exceeded the annual/target premium.
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Financial Planning Fees/Fees for Advice are eligible for Limited Credit for the gross fee paid to the company, broker dealer or individual agent/advisor. Fees must be documented by certifying letter signed by a company official, a broker dealer official, or a Certified Public Accountant (or equivalent).
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Group health insurance premium is eligible for credit in the first year of the policy only. Additions to the group in subsequent years are not eligible for credit.
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Single premium and/or short-term endowment premium is only eligible in the first year of the policy. The maximum term of the endowment policy is 15 years. Short-term endowment riders (max 15 years) to life insurance policies are eligible for 6 percent of first year premium credit.
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Long-term endowment premium is only eligible in the first year of the policy. Long-term endowment riders (16 or more years) to life insurance policies are eligible for 100 percent of first-year premium credit in the Unlimited Category.
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Premium credit for pensions is based on the product used to fund the pension (life insurance, annuities, mutual funds, etc.) which determines whether it receives Unlimited Credit or Limited Credit.
4. PRODUCTION CREDIT (Unlimited and Limited Credit)
Click here for 2010 production requirements
5. COURT OF THE TABLE
The production requirement to qualify for the 2010 Court of the Table is USD 263,700 of eligible commissions or USD 527,400 of eligible paid premium. A minimum of USD 43,950 of commission or USD 87,900 of premium (50 percent of the entrylevel MDRT requirement) must come from products listed in the Unlimited Credit category before an applicant can use any credit from policies listed under the Limited Credit category.
6. TOP OF THE TABLE
The production requirement to qualify for the 2010 Top of the Table is USD 527,400 of eligible commissions or USD 1,054,800 of eligible paid premium. A minimum of USD 43,950 of commission or USD 87,900 of premium (50 percent of the entry-level MDRT requirement) must come from products listed in the Unlimited Credit category before an applicant can use any credit from policies listed under the Limited Credit category.
Top of the Table members with a minimum of 10 years of Top of the Table membership may apply without production under the Top of the Table waiver provision, but must submit required Top of the Table dues.
7. CREDIT FOR COVERAGE WRITTEN ON THE APPLICANT, SPOUSE OR DEPENDENTS
A maximum of 5 percent of the current year's production requirement (USD 4,395 eligible commissions or USD 8,790 of eligible premium) if any of the premiums are paid, directly or indirectly, by the applicant or spouse.
8. REPLACEMENTS
Credit for individual life insurance policies may be claimed only for the amount of first-year commissions or premium on the new policy that exceeds the first-year commissions or premium for the policy being replaced. If the amount is not known, then the amount of commissions being replaced shall be calculated by multiplying the current commission times the appropriate premium for the policy being replaced. Premium credit can be determined by subtracting the replaced premium from the new premium.
Conversion of a permanent product to a permanent product is to be treated as a replacement for MDRT purposes. This applies only to replacement of individual life insurance policies.
9. APPLICATION FORMS
Applications for 2010 MDRT membership will automatically be sent in November 2009 to all 2009 and 2008 MDRT members. Others may request an application by phone, fax or through the this website.
10. CERTIFYING LETTERS
An application for Qualifying or Qualifying and Life membership will be considered incomplete, and membership may be denied, unless a certifying letter signed by an official from the company an applicant is using for MDRT production is attached to the membership application. These companies may include life insurance companies, agencies, brokerage companies, broker/dealers banks or mutual fund companies. Click here to obtain 2010 Certifying Letters.
A Certified Public Accountant (CPA) or the equivalent may sign certifying letters for financial planning fees/fees for advice that are paid directly to the producer.
Brokerage companies are defined as third party wholesalers of insurance and investment products that are provided to agents on behalf of insurance and investment companies. Should an applicant be an official of a brokerage company, the product provider who pays the commissions must sign the certifying letter.
11. ANNUAL MEMBERSHIP DUES: USD 550
Required dues, completed application and other required forms must be postmarked on or before March 1, 2010. Applications postmarked after March 1 will be considered only if accompanied by an additional fee of USD 200.
12. COURT OF THE TABLE DUES: USD 50
In addition to remitting regular MDRT dues, a Court of the Table applicant also needs to remit the required Court of the Table dues.
13. TOP OF THE TABLE DUES: USD 550
In addition to remitting regular MDRT membership dues, a Top of the Table applicant also needs to remit the required Top of the Table dues. Top of the Table membership dues includes Court of the Table membership.
14. LIFE, REDUCED DUES: USD 185
Life members who meet all four of the criteria below are eligible to pay a reduced dues amount. Those eligible for reduced dues are not required to be members of a professional association.
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a Life or a Qualifying & Life member, and
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not submitting production, and
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65 years of age by December 31, 2009, and
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have either 25 years of membership OR 20 years of membership with production.
15. DISABILITY WAIVER
Life members who have been declared totally disabled for six consecutive months during 2009 may petition for a waiver of payment of dues for the 2010 Table. A disability petition form and doctor's statement must be submitted by March 1, 2010, with the membership application. Each petition will be judged on its own merit. Those approved for the disability waiver are not required to be members of a professional association.
Special information concerning payment by credit card.
16. MDRT STATUS DESIGNATIONS
Each MDRT status designation is granted for one year only. All members must apply every year to continue their affiliation with MDRT.
- QUALIFYING MEMBER
An individual who is a first-time applicant becomes a Qualifying (Q) member when his/her application papers are approved. Until the 10th year of membership is attained, the member will be a Qualifying member.
- QUALIFYING AND LIFE MEMBER
An individual becomes a Qualifying and Life (QL) member when approved for the 10th year of membership. The year or years during which Provisional Applicant status was/were held are counted. Qualifying and Life status is maintained in future years by submitting certified production with the membership application.
An individual may also become a Qualifying and Life member if the applicant was initially licensed as an insurance or financial services professional/ advisor after attaining age 45 and has been approved for six consecutive years.
- LIFE MEMBER
After Qualifying and Life membership has been attained, a member may choose to apply as a Life (L) member by not including certified production with the membership application. Life members must annually submit an application and pay dues.
17. REINSTATEMENT OF LIFE MEMBER STATUS
Should Qualifying & Life or Life members fail to renew their membership, they may be reinstated by paying back dues for the number of years missed, not to exceed a maximum of five years, and by meeting the then current requirements for Life membership. The maximum number of years for which back dues are required will be reduced to three years if the member submits production that satisfies the current requirement for Qualifying membership. The amount of back dues will be based upon the current dues at the time of reinstatement. Please note: Payment of back dues does not entitle credit for member year(s) missed.
Additional information may be obtained from:
Million Dollar Round Table, Membership Department,
325 West Touhy Avenue, Park Ridge, IL 60068-4265 USA
Telephone: (847) 692-6378; Fax: (847) 518-8921;
E-mail: membership@mdrt.org
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