Definitions and Terms

Definitions and Terms

Advanced Commission – Commissions that are advanced to the agent after the first premium is paid. The advanced amount can be up to 100% and apply to first year, renewals or both.f the first-year commission after the first premium is paid. The agent must return any advanced amount that is not earned if the policy lapses. Advanced commissions can be calculated for % of Premium, MA-PDP, Fee and Target Premium policies. Commissions can be advanced during first year, renewals, or both. The choice for Advanced Commission is decided when the Comp Plan is created.
Annualized Premium – The amount of premium paid multiplied by the mode of payment. Example – $100.00 paid quarterly = $100.00 × 4 = $400.00 annualized premium
Client Type – A client can be an individual, group or workskite.
  • Individual – An individual policy is owned by an individual client. Examples of individual policies are life, disability, LTC, annuities, and health insurance.
  • Group – A group policy is owned by an employer. Examples of group policies are group life, AD&D, LTD, STD, and dental.
  • Worksite – A worksite policy is an individual policy owned by an employee and purchased through the worksite. Premiums are usually payroll deducted. A Group must be linked to a worksite policy when added to a client. Examples of worksite policies are voluntary life, STD, LTD, LTC, dental, auto, home, pre-paid legal and pet insurance.
Comp Plan – A Comp Plan calculates the commission or fee for a policy.  Once a comp plan is created, it can be linked to a policy.  When a policy is added to a client, a comp plan can be linked to it based on the carrier selected.  Commissions are calculated based on the top comp plan types:
  1. % of Premium
  2. Medicare Advantage & Prescription Drug Plans
  3. Fee
  4. Target Premium
  5. Graded
Comp Plan – Bulk Change – The process of adding or changing a comp plan on multiple policies at one time.
Effective Date – The start date of a policy.
Comp Status – a category of a commission. After importing a commission statement, a commission is either Mathced, Pending or Ignored.
  1. Matched – commissions from a statement that are linked to a policies in the database.
    1. Unmatch – process of unmatching a previously matched commission. Once unmatched, the commission will change to Pending status.
  2. Pending – commissions that cannot be matched to a policy in AgencyComp. This happens when a coresponding policy cannot be found in the database.
  3. Ignore – commissions that are ignored and not posted to a policy.
  4. All – displays all commissions.

Mode – The frequence of the premium payment.

NameAbbreviationNo. of Payments
WeeklyW52
Bi-WeeklyBW26
Semi MonthlySM24
MonthlyM12
QuarterlyQ4
Semi AnnualSA2
AnnualA1
Paid Commission – The amount of commission or fee paid on a policy.
Paid Date – The date a commission or fee is paid on a policy. The paid date is a required field when importing a commission statement.
Policy Fee – A fee added to the premium that is non-commissionable.  A policy fee is indicated when adding a policy to a client.  The policy fee is deducted from the premium when calculating the commission.
Policy Number – A unique identifier for the policy. Policy numbers are optional but required if importing commissions.  The policy number from the commission statement is used to match the commission to a policy. When adding a policy to a client, it’s important to add a policy number as soon as possible.
Policy Status – the policy status can be Pending, Active, Termed or Not Taken..
  1. Pending – a policy in underwriting that has not paid any commission.
  2. Active – a policy that is inforce and paying commissions.
  3. Termed – a policy that was inforce for a period and then terminated. A Termed policy requires a termination date.
  4. Not Taken – a policy was issued but not accepted by the client.
Posting – The process of linking a commission to a policy after the commission has been imported. Commissions have a Comp Status of Matched, Pending or Ignored.
Premium – The amount of money paid for a policy.
Product – The specific name given to prodcts offered by an insurance company.
Projected Commission – The projected amount of commission or fee for a policy based on the omp lan linked to it.
Repost - The process of updating multiple policies that have pending commissions.  After updating the policies, the user returns to the posting page.  Click the REPOST button and all commissions will be updated.

Type
The Type categorizes products that are sold and is included in certain reports. Type is the parent description of a policy.  AgencyComp comes pre-loaded with sample Types that can be edited or deleted.

Sample Types

Types
Life
Disability
Long Term Care
Annuities
Medicare
P&C
Commercial
Health
Voluntary
Acilliary

Sub-Type
A Sub-Type provides additional detail to the Types of insurance sold. It has a child relationship to Types. AgencyComp comes pre-loaded with sample sub-types that can be edited or deleted.

Sample Sub-Types

TypesSub-Types
Life10 YRT
15 YRT
20 YRT
30 YRT
Whole Life
Universal Life
Variable Life


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