I am considering a transition to commercial insurance and wanted to clarify how commercial lines producer receive compensation.
The Producers commission percentages can obviously vary from 10% to lets say 50% depending on a few variables, but lets just use 25% for example purposes.
Is the 25% commission, the percentage of the clients annual premium or a percentage of what the Agency is being paid by the insurance company?
Ex:
A) $10,000 annual premium x 25% commission = $2500 paid to the Producer or is it
B) $10,000 annual premium x 15% Agency commission = $1500 x 25% commission = $375 paid to the Producer
The Producers commission percentages can obviously vary from 10% to lets say 50% depending on a few variables, but lets just use 25% for example purposes.
Is the 25% commission, the percentage of the clients annual premium or a percentage of what the Agency is being paid by the insurance company?
Ex:
A) $10,000 annual premium x 25% commission = $2500 paid to the Producer or is it
B) $10,000 annual premium x 15% Agency commission = $1500 x 25% commission = $375 paid to the Producer