Set up commission structures

You can set up commission structures for your company in Settings.

To set up commission structures:

  1. Navigate to Settings > Modules > Contacts > Commission Structures.
  2. Select + next to Add New Structure Start Date.

    Note: This date is referenced by a policy’s effective date. For example, a 7/1/2020 Structure Start Date means that any policies effective on or after 7/1/2020 will receive commission rate as defined in the structure.

  3. In the Structure Start Date dialog box, type a date that falls after your first lines effective date but prior to your first policy effective date in BriteCore. For example, if your first lines effective date is 12/1/2019 and your first policy effective date is 1/1/2020, then enter a commission start date of 12/15/2020.
  4. Select Done. You’ll return to the Commission Structures section.
  5. From the Structure Start Date dropdown list, select the structure start date.
  6. Select + next to Add New Commission Structure. The Commission Structure Setup dialog box will appear.
  7. In the Commission Structure Name box, type a descriptive name for your commission structure. For example, for a standard agency commission rate, you may type Standard Agency Commission Date.
  8. In the Create Commission Table Containing Tiers field, type the number of tiers you want to add. You must add at least one tier. Each tier allows you to set a different commission rate based upon renewal dates or premium.
  9. Select Build Table.
  10. If the commission rate will differ based on state, policy type, and new or renewal business, complete the following steps in the Distinct Commission Rates Are Paid Per… section. If the commission rate is the same for each state, policy type, and new or renewal business, move to step 11.
    1. If the commission rate differs per state, select the checkbox next to the State dropdown list. From the State dropdown list, select the state that the commission rate differs for.
    2. If the commission rate differs for a specific policy type in a state, select the checkbox next to the Policy Type dropdown list. From the Policy Type dropdown list, select the policy type that the commission rate differs for.
    3. If the commission rate differs for new or renewal business for a specific policy type in a state, select the checkbox next to New or Renewal Business. Select New or Renewal from the dropdown list.
  11. To define a rate for policies prior to a given renewal date, type the date in the Renewal Date Before boxes. For example, policies renewing prior to 7/1/2020 receive a 10% rate, while all other policies receive a 12% rate.
  12. In the For Premium Greater Than box, you can define a commission rate based upon a policy’s premium. To define the commission rate based on a policy’s premium, type the amount in the For Premium Greater Than box.
  13. In the Rate box, type the commission rate for this tier.
  14. Repeat steps 10-13 for each tier.
  15. When you’re finished select Done.

Set up commission structures for legacy policies

You can set different commission rates for legacy business. For example, a lower commission rate can be paid on policies with an older inception date and a higher commission rate can be paid on newer policies created by the agency.

To set up different commission rates for legacy business, complete the following:

  1. Navigate to Settings > Modules > Contacts > Commission Structures.
  2. Select + next to Add New Structure Date.
  3. In the Structure Start Date dialog box, type 01/01/1901.
  4. Select Done. You will return to the Commission Structures section.
  5. Select the date from the Structure Start Date dropdown list.
  6. Select + next to Add New Commission Structure. The Commission Structure Setup dialog box will appear.
  7. In the Commission Structure Name box, type a descriptive name for the new commission structure, such as Legacy Agency Commission Rate.
  8. Select the Trigger off Policy Inception Date instead of Term Effective Date checkbox.
  9. In the Create Commission Table Containing Tiers field, type the number of tiers you want to add. You must add at least one tier. Each tier allows you to set a different commission rate based upon renewal dates or premium.
  10. Select Build Table.
  11. If the commission rate will differ based on state, policy type, and new or renewal business, complete the following steps in the Distinct Commission Rates Are Paid Per… section. If the commission rate is the same for each state, policy type, and new or renewal business, move to step 12.
    1. If the commission rate differs per state, select the checkbox next to the State dropdown list. From the State dropdown list, select the state that the commission rate differs for.
    2. If the commission rate differs for a specific policy type in a state, select the checkbox next to the Policy Type dropdown list. From the Policy Type dropdown list, select the policy type that the commission rate differs for.
    3. If the commission rate differs for new or renewal business for a specific policy type in a state, select the checkbox next to New or Renewal Business. Select New or Renewal from the dropdown list.
  12. To define a rate for policies prior to a given renewal date, type the date in the Renewal Date Before boxes. For example, policies renewing prior to 7/1/2020 receive a 10% rate, while all other policies receive a 12% rate.
  13. In the For Premium Greater Than box, you can define a commission rate based upon a policy’s premium. To define the commission rate based on a policy’s premium, type the amount in the For Premium Greater Than box.
  14. In the Rate box, you can type the commission rate for this tier.
  15. Repeat steps 12-14 for each tier.
  16. When you’re finished select Done.

Usage considerations

If a commission structure isn’t assigned to a contact, but is added after a month-end processing and the commission should have been paid, follow these steps for paid and written premiums:

Paid premium

  1. Submit a ticket to BriteCore.
  2. Update the commission rate on the agency in the Contacts module.
  3. Run the recalculate tool in the commission section of ./bin/britecore_shell.py.

Written premium

  1. Update the commission rate on the agency in the Contacts module.
  2. Submit a ticket to BriteCore.
  3. Run the insert_manual_adjustment tool in the commission section of ./bin/britecore_shell.py to insert a manual adjustment.