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Flat Carrier Table

The Flat Carrier Table is the most common method for calculating carrier commissions. It allows you to define a set commission percentage based on the age of a policy (the Policy Term).

Instead of building complex formulas, you simply enter your percentages into a simple grid. This ensures your Expected Commission matches what the carrier is likely to pay as a policy matures.

Basic Term Logic

In a Flat Table, the columns represent the Policy Term #.

  • Column 1: Represents the first year (New Business).

  • Column 2+: Represents renewals.

Scenario: 15% Initial / 5% Renewal

In this example, the carrier pays a higher percentage for the first term and a lower percentage for all subsequent renewals.

Flat Carrier Table Term 1 and 2

Policy Term Actual Premium Calculation Expected Commission
Term 1 $100.00 $100 \times 15\%$ $15.00
Term 2 $100.00 $100 \times 5\%$ $5.00

Advanced Term Scaling

You can define up to 10 distinct term ranges if a carrier uses a more complex "step-down" schedule. If a carrier stops paying commission after a certain number of years, you can enter 0% for the remaining terms.

Example Setup:

  • Term 1: Pays 120% of premium.

  • Terms 2–4: Pays 50% of premium.

  • Terms 5–10: Pays 20% of premium.

  • Term 11+: No commission is paid.

Advanced Flat Carrier Table Scaling

Key Benefits

  • No Formulas Required: Simply enter the percentage for each term year.

  • Automated Transitions: As you Renew Policies and the Term Number increases, Commission Tracker automatically switches to the next column's percentage.

  • Precise Projections: Helps you identify underpayments by comparing the Expected Commission from the table against the Actual Commission received.

Troubleshooting

Q: Why is my commission calculating at the Year 1 rate for a renewal? A: Check the Term # on the Policy Information screen. If the policy was not advanced to Term 2 during the renewal process, the system will continue to use the Column 1 percentage.

Q: What happens if the policy reaches Term 11 but I only have 10 columns? A: The system will continue to use the percentage defined in the last available column (Column 10) unless that column is set to 0%.

Need help setting up a specific carrier's schedule? Contact support@commission-tracker.com