Qualifying for the 2009 Million Dollar Round Table
Learn what requirements you need to meet during 2008 to be a member of MDRT in 2009
by Freddie Andalaft (pictured right) – Area Representative (Gauteng)
Although it takes more than just stellar production to qualify for MDRT membership, this article explains exactly what level of production you need to reach to make the 2009 Table. (Note: Monetary amounts are in U.S. dollars unless otherwise noted.)
Production requirements
The production required during 2008 (to qualify for the 2009 Table) in the United States is $87,900 in eligible commissions, or $175,800 in eligible premiums or new money invested.
(Applicants must choose either the commission method or the premium method, not both.) at least 50 percent of the requirement ($43,950 of commissions or $87,900 of premium) must come from life insurance, accidental death and dismemberment, annuities, disability income, long – term care and critical illness products. The remainder may come from mutual funds, securities, wrap accounts, health insurance and financial planning fees/fees for advice.
Court of the Table. The production requirement for the 2009 Court of the Table is three times the MDRT requirement ($263,700 in eligible commissions or $527,400 in eligible premiums/new money invested in the United States).
Top of the Table. The production requirement for the 2009 Top of the Table is six times the MDRT requirement ($527,400 in eligible commissions or $1,054,800 in eligible premiums/new money invested in the United States).
Association requirements
Applicants from Australia, Bahamas, Canada, Greece, Hong Kong, Ireland, Israel, Jamaica, Japan, Malaysia, New Zealand, Philippines, Singapore, South Africa, Thailand, Trinidad and Tobago, United Kingdom and United States must be a member of a professional association that meets the following criteria:
- Must be an individual membership organization open to participation without regard to company affiliation, one of the focuses of which is insurance or financial services.
- Must have been in existence at least two years and must have 100 or more members.
- Must be a nonprofit organization.
- Must have a code of ethics and an effective means of dealing with breaches of its code.
Status designations
Applicants for Qualifying or Qualifying and Life status must include a certifying letter(s). The letter(s) must specifically list the amount of commissions paid or premium collected. An official of the company that pays the applicant’s commissions must sign the letter(s). These companies may include life insurance companies, agencies, brokerage companies, broker-dealers, banks or mutual fund companies. 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(s).
A certified public accountant or the equivalent may sign certifying letters for financial planning fees/fees for advice that are paid directly to the producer by the client. For more information on certifying letters, visit http://www.mdrt.org/. Applicants for Life status are exempt from the certifying letter requirement, but must submit an application and pay dues.
(Click on image to enlarge)
Clarification on Unlimited and Limited Credit
§ At least one-half (50 percent) of the production requirement must come from products listed in the Unlimited Credit category.
§ 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 2009 commission requirement for the United States is $87,900. To qualify, the applicant must submit a minimum of $43,950 in commission from products listed in the Unlimited Credit category.
Example 1: Eligible for MDRT membership
Applicant total Unlimited Credit $43,949
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% threshold applies regardless of whether commission or premium is used to qualify for membership. At least 50% of the Court of the Table or Top of the Table production requirement must come from Unlimited Credit products. RTT
