Commission is the compensation due to an agent or agency in exchange for the development of a new business or maintenance of an existing business.
A commission can be paid in one of two ways:
- Paid on written premium.
- Paid on paid premium.
In BriteCore, commission management is interwoven through various modules: Settings, Reports, Contacts, and Policies.
Once a policy is issued (committed) and effective, commissions can be calculated. Commissions are calculated on the 1st of each month for the previous month. The amount of commission paid is based on a percentage of the commissionable amount.
A commissionable amount:
- Can be earned on.
- Can't be earned on fees paid on a policy.
- Is calculated differently for the commission paid on the written premium than it is for the commission paid on paid premium.
- Is determined by the sum of the written premium record for a specific date range.
- Is determined by the sum of total payments and non-sufficient funds, minus the amount of returned premium, minus the amount of total fees.
Note: If a payment is deleted, the commissionable amount is recalculated which will change the commission amount.
Commission rates can be defined when you create your commission structures.
Note: For more information, 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.
Note: For more information, see Add an agency and Add an agency group.
In addition to establishing commission rates within commission structures, you can configure line items of a policy to earn commissions or you can configure line items to not earn commissions by using the line item setting No commission is paid on this line item.
Commissions paid to
After commissions are calculated and sent at the beginning of the month, they are received by the agent or agency that was listed on a committed and effective policy at the end of the previous month. Commissions can be positive or negative.
Here is a list of tasks you can complete in BriteCore to manage commissions: