Carrier-collected commissions

In some insurance arrangements, the carrier collects the full gross premium directly from the insured and later returns the agency’s commission separately.

This carrier-collected gross and return commission model is common with national or direct-bill carriers. While it simplifies collection for the carrier, it requires the agency to track both the gross payable and the commission receivable to ensure accurate accounting, compliance, and producer compensation. This article explains...

Create a carrier-collected policy commission

1. Navigate to the Policy record.

2. In the Details section, the follow should be selected:

   1. Billing Type: Select Direct

   2. Billing Frequency: Select Advance and Transactions

3. In the Commissions section, complete the Initial Premium Amount and any applicable agency fees.

4. Click Save to ensure changes to the record are saved.

   

5. Click Insert Billings.

   

6. The system will automatically create the following:

   1. Billing to the insured for the gross premium amount.

   2. Billing to the carrier for the agency commission amount.

   3. Payable to the carrier for the full gross premium.

Create a cash receipt

When the carrier returns the agency commission:

1. Follow the process to Create a Cash Receipt with the following field entries:

   1. Received From: select the carrier the commission was received from.

   2. Posting Status: Approved

2. Save the new Cash Receipt.