Commission is the compensation due to an agent or agency in exchange for the development of new business or maintenance of existing business. A commission can be paid in one of two ways:
- Paid on written premium.
- Paid on paid premium.
In BriteCore, commissions management is interwoven through various modules: Settings, Reports, Contacts, and Policies.
The amount of commission paid is based on a percentage of the commissionable amount. Commissionable amount simply means the amount that commission can be earned on. For example, a commission can’t be earned on fees paid on a policy. Commissionable amount is calculated differently for the commission paid on written premium than it is for the commission paid on paid premium.
- Commissionable amount for written premium is determined by the sum of the written premium record for a specific date range.
- Commissionable amount for paid premium is determined by the sum of total payments and non-sufficient funds, minus the amount of returned premium, minus the amount of total fees.
Commission rates can be defined when you create your commission structures. See Set up commission structures. You can establish specific rates for business based on the business location, the policy type, and new or renewal business. Once commission structures have been set up, they can be assigned to agencies or agency groups within the Contacts module. See Add an agency and Add an agency group.
Here is a list of tasks you can complete in BriteCore to manage commissions:
- Set up commission structures
- Configure commission payments
- Select how to print commission reports
- Set up commission statements
- Run agent commission
- Send commission statements
- Process pending commissions
- Submit manual commission adjustments
- Delay negative commissions
- Set up negative commissions
- Validate commission payments after an agency changes
- Regenerate a commission statement
- Resend a commission statement
- Rerun commission payments