Carrier Payment Details
Overview
The Carrier Payment Details section is the heart of Commission Tracker. While the Effective Date tells the system when to start, this section defines how much you are paid and how often those payments occur.
The information entered here creates the "Expected Commission" schedule that the system uses to track your revenue.
💰 How Much: Calculating Commission
Your total commission is determined by the combination of two key fields:
- Term Number: Identifies if the policy is in its first year (New Business) or subsequent years (Renewal).
- Carrier Table: The logic rule that applies a percentage or dollar amount based on that term.
Example Scenario:
- Carrier Table: "Life" (Flat Table)
- Annual Premium: $12,000
- Term 1 Rate (New Business): 120%
- Term 2+ Rate (Renewal): 20%
The Result: In Year 1, the system expects $14,400 in total agency commission ($12,000 × 1.20).
📅 How Often: Payment Schedules
The frequency of your payments is controlled by the # of Payments per Term and the # of Payments Paid In Advance.
Example: A 9-Month Advance
Using the $14,400 commission calculated above: * Payments per Term: 12 (Monthly) * Payments in Advance: 9 * Schedule Logic: The first 9 months are bundled into a single "Advance" payment, while the remaining 3 months are paid "As-Earned."
| Payment Type | Timing | Calculation | Amount |
|---|---|---|---|
| Advance | Month 1 | $1,200 × 9 | $10,800 |
| As-Earned | Month 10 | $1,200 × 1 | $1,200 |
| As-Earned | Month 11 | $1,200 × 1 | $1,200 |
| As-Earned | Month 12 | $1,200 × 1 | $1,200 |
| TOTAL | $14,400 |
🔄 Renewal Continuity
Once a policy is renewed, this logic repeats. In Year 2 (Renewal), the system will look at the Carrier Table for the "Term 2" rate (20%) and generate a new schedule based on the renewal premium.
⚠️ Key Definitions
- Premium Per Payment: The amount the client pays per installment.
- Number Of Payments Per Term: How many times the carrier issues a commission (e.g., 12 for monthly, 1 for annual).
- Number Of Payments Paid In Advance: How many months of commission the carrier "front-loads."
- Commission Per Payment: The specific dollar amount the agency expects to receive per individual payment.
💡 Tips for Success
- ✅ Check the Math: If the "Expected Commission" in Commission Tracker doesn't match your carrier contract, verify your Carrier Table rates first.
- ✅ Standardize Advances: Most carriers have standard advance rules (e.g., 9-month or 12-month). Set these on the Carrier Table level to avoid manual entry for every policy.
- ❌ Don't Forget Renewals: Ensure your Carrier Tables have rates defined for Term 2 and beyond, or the system will assume $0 commission for renewals.