Understanding Commission Split Rules in Momentum AMS

Scenario 1: Permanent Commission Split

Description:
A Permanent Commission Split is used when a supervisor, mentor, or predefined agent consistently receives a share of the commission from another agent’s policies. This is configured directly in the managed or mentored agent’s account and applies automatically to all policies they handle.

Purpose:
This arrangement is ideal for:

• Managers or mentors who oversee agents

• Structured team setups where overrides are standard practice

How It Works:

• The split is automatically applied; you do not need to add the secondary agent (e.g., the mentor) to each policy.

• This ensures efficiency and consistency without extra steps during policy creation.

⚠️ Important Note:
If you manually add the mentor or manager (Agent B) to the policy as an additional producer, their standard commission rules will apply in addition to the split rule. This could cause the total split to exceed 100% of the agency commission—so avoid adding them manually in these scenarios.

Example:

• Agent A: Primary producer

• Agent B: Mentor/manager

• All policies Agent A writes automatically generate a split to Agent B based on the rule in Agent A’s account.

Scenario 2: Case-by-Case Commission Split

Description:
A Case-by-Case Commission Split is for specific policies where two (or more) agents work together. This split is manually configured on a per-policy basis and does not affect the agents’ other accounts or policies.

Purpose:
This arrangement is ideal when:

• Agents collaborate on a single deal

• One-time referral arrangements occur

• Commission needs to be divided for a specific transaction

How It Works:

1. Add a Producer Split Commission Rule to the policy.

2. Manually list both agents on the policy (e.g., Agent A and Agent C).

3. Define the split percentage for each listed agent directly on the policy.

Example:

• Agent A and Agent C collaborate to secure a commercial account.

• Both are manually added to the account, with split percentages assigned for that specific policy.

Best Practices

• Use Permanent Splits for Ongoing Relationships: Keeps management overrides automatic and reduces manual errors.

• Use Case-by-Case Splits for Collaboration: Keeps permanent commission structures clean while accommodating special circumstances.

• Avoid Double Counting: Never manually add an agent to a policy if they already receive a permanent split for that agent’s work.

• Document Agreements: Always have written agreements for commission splits to avoid disputes.