Origination Date
Overview
The Origination Date represents the start of the very first term of a policy. While the Effective Date changes every year upon renewal, the Origination Date remains constant for the life of the policy.
In Commission Tracker, this field serves two primary purposes: 1. Calculating Term Number: Helping the system determine if a policy is "New Business" or "Renewal." 2. Historical Reference: Tracking how "old" a policy is, especially if it was moved into Commission Tracker from a previous system.
🔢 Calculating the Term Number
The system compares the Origination Date to the Current Term Effective Date to estimate the Term Number. This is critical because your Carrier Table likely pays different rates for Term 1 (New) versus Term 2+ (Renewal).
Example: A 7-Year-Old Policy
If a policy originated in 2016 but the current term begins in 2022, the system calculates this as Term 7.
| Calendar Year | Term Status |
|---|---|
| 2016 | Term 1 (Original Term) |
| 2017 – 2021 | Terms 2 through 6 |
| 2022 | Term 7 (Current Term) |
Note: This logic allows you to enter "Takeover" business (policies that have already renewed many times before you started using Commission Tracker) and still have them pay out at the correct renewal rate.
🏗️ Use Cases for Origination Date
1. The "Writing Date"
Some agencies prefer to use this field as the "Application" or "Writing Date." This is often a few weeks prior to the actual Effective Date. It tracks when the agent actually performed the work, even though payments haven't started yet.
2. Takeover Business
When migrating data from another software, setting the correct Origination Date ensures the system doesn't treat an old policy as "New Business" when the first payment arrives.
⚠️ Important Considerations
- Informational Only: Aside from estimating the Term Number, this date is primarily for your records and reporting.
- Consistency: For accurate tracking, this date should remain identical across every renewal term of a specific policy.
- Effective Date vs. Origination Date: Always remember: The Effective Date triggers the money; the Origination Date explains the history.
💡 Tips for Success
- ✅ Check for Accuracy: If a renewal policy is paying out at a "New Business" rate, check if the Origination Date was accidentally set to the same day as the current Effective Date.
- ✅ Standardize Entry: Decide as an agency if you will use "Original Effective Date" or "Writing Date" and be consistent across all clients.
Still Need Help?
To see how this affects your payouts, visit our guide on Term Numbers.