Commission payment schedule?

by jasonlachance01 » Wed Feb 24, 2010 09:20 pm

Hello,I am getting my license and will operate as an independant producer in the state of KS and have a question about how commissions are paid. Are they paid in one lump sum as soon as the policy is written, or is it spread out across the year. For example, if I write an auto policy for $1,000 in the month of May should I expect to get my commission as one check immediatly thereafter or will I receive my commission on that policy as installments throughout the year as the policy holder pays?

Total Comments: 1

Posted: Wed Feb 24, 2010 10:21 pm Post Subject:

The answer to your question is completely dependent upon the company or agency that you are working for. As an independent producer, you're more than likely going to be working for an independent agency. Every agency that I have ever seen has their own version of commission schedules. It's going to depend on what you sell, how much you sell and to whom.

This is one of those questions that needs to be discussed when you are potentially offered a job- you need to find out how that agency pays commissions, whether there's a salary, and if so- is it salary plus commission, commission against a draw, etc.

InsTeacher 8)

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