Policy Commission refers to the compensation for the sale of policies to Producers or Agents. This compensation can be a percentage of premium paid through Agents to Insurance Companies. Many insurance carriers base this commission on various criteria such as Coverage, the product and the marketing methods. A standard commission is a specific dollar amount or percentage commission on the premium set at the time of or advance of the purchase, renewal, and placement or servicing of a particular insurance policy as applicable. Therefore, Commissions are payable to Producers or agents for bringing the business to the Insurance Company. Here, the Insurance policies cover all types of Insurance Contracts for which services are used.
There are two Policy Commission entities. They are, Commission Details and Commission Transactions.
· Stage Policy Commission Details refers to as of date picture of various commission events for a given policy, coverage and commission event type. To arrive at producer or agent level summary one needs to aggregate over given policy for all or specific commission event type. Source of this information is expected to be a underwriting or producer management systems.
· Stage Policy Commission Transactions holds the set of individual transactions incurred or paid for a given policy. Source of this information is expected to be accounting systems.