Commission Tracking
The process of recording, reconciling, and reporting insurance commissions owed and received, including carrier statement matching and discrepancy resolution.
businessPublished 2026/06/10Last verified 2026/06/10
FAQs
- What is the difference between agency bill and direct bill commission?
- Under agency bill, the agency invoices the client, collects premium, and remits the net amount to the carrier, retaining the commission. Under direct bill, the carrier invoices the client directly and remits the commission to the agency separately. Direct bill is more common for personal lines; agency bill is standard for commercial lines.
- How do agencies track contingency bonus eligibility?
- Agencies with contingency arrangements track their performance against each carrier's qualifying criteria throughout the year — typically premium volume and loss ratio thresholds. Most carriers provide mid-year contingency statements so agencies can project their year-end position and make business decisions accordingly.
Related Terms
Producer Management
The administrative and performance oversight functions applied to licensed producers, including goal-setting, compensation plans, and production reporting.
Split Commission
A commission arrangement in which revenue from a single policy is divided between two or more producers, brokers, or agencies based on agreed terms.
Carrier Connectivity
The technical integration between an agency's AMS and carrier systems enabling policy downloads, real-time quoting, and data synchronization.
Contingency Bonus
Additional compensation paid by a carrier to an agency for meeting volume, loss ratio, or growth targets over a defined performance period.