Commission

This is the amount of money that an insurance company pays to an agent from the portion of the policy premium of the insured as a compensation for the agent's work.

The compensation may depend not just on the number of insured that subscribe or bought policy through the agent but the activeness of their (policyholders) insurance policy and the regular payment of their premiums.

Compensation varies from one insurance company to another, but the same principle of 'the more active policyholders, the more the commission of the agent' still apply.

Posted in: Glossary of Auto Insurance (C)