Understanding Commission Split Rules

A Guide to Permanent and Case-by-Case Commission Split Scenarios for Agents and Supervisors

Commission Split Commission Rules.  There are 2 types:

Scenario 1: Permanent Commission Split

• Description: This rule is intended for situations where a supervisor or predefined agent consistently receives a commission split. This split happens automatically and does not require the agent to be listed on each policy. The rule is specifically set up in the managed or mentored agent's account.

• Purpose: This setup is designed for managers or mentors who are permanently assigned to receive a portion of the commissions for every policy handled by a particular agent, ensuring that the split occurs without manual intervention.
  • Automatic Split: There's no need to manually add Agent B to the account or policy. The commission splits will be automatically generated according to the predefined rule.
• Important Note: If you manually add the mentor or manager (Agent B) to the policy, their standard commission rules will apply in addition to the split rule. This could result in a commission split that exceeds the total agency commission, so it’s important to avoid this.

In this screenshot below, Agent A is the primary producer, while Agent B, the mentor or managing agent, automatically receives a split of the commission.

 

Scenario 2: Case-by-Case Commission Split

This scenario is achieved by:

1. Adding a producer split commission rule.
2. Manually adding both agents to the policy.

• Description: If Agent A and Agent C collaborate in writing a policy and both are given credit specifically for this account, a special commission split is applied.
• Implementation:
  • Listing Agents: To apply this rule, manually add Agent C (or any other collaborating agent) as an agent on the account.
  • Specific Arrangement: This setup is unique to the policy and operates separately from the agents' regular commission rules.