Carriers pay commissions in different ways depending on their structure. The three most common commission types are Written, As Earned, and As Collected. Below we’ll break down what each one means and show you how to check which payment type applies
Written Commissions
With written commissions, you receive the full commission for the policy term upfront.
Example:
If you write a 6-month policy, you’ll be paid the total commission for the full 6 months as a lump sum.
Important: If the policy is canceled before the term ends, you will owe back the unearned portion of the commission.
As Earned Commissions
With as earned commissions, you are paid based on the portion of the premium that has been “earned” during the policy period.
Example:
If you write a 12-month policy for $1,200, you’ll be paid on the $100 per month as the policy is earned month by month.
As Collected Commissions
With as collected commissions, you are paid based on the premium actually collected by the carrier from the insured.
Example:
If the customer pays monthly, you’ll be paid your commission each time the monthly premium is collected.
How to Check a Carrier’s Commission Type in First Connect
To make this easy, you can view each carrier’s commission structure directly in the First Connect portal.
- From your Dashboard, select the carrier you want to check.
- When the carrier card opens, click More Details.
- Select the Features tab.
- Here you’ll see the commission payment type listed along with other carrier details.
For further questions, please contact our commissions team at commissions@fcis.com.