Add a Commission Agreement

You can add a commission agreement for a company, broker, or employee (if the employee is defined as a commissionable producer in employee detail). Setting up commission agreements for these entities enables the correct commissions to be applied automatically when you perform workflows such as adding a policy or a transaction. Define when each commission agreement takes effect, if and when it expires, the type and amount of commission issued or received by the entity, and the situations in which the agreement will be used.

1. Locate the appropriate company, broker, or employee.
   1. To access Accounts from the Home screen, do one of the following:
      • Click Accounts on the navigation panel.
      • Click Areas > Accounts on the menubar.
      • Click the down arrow next to Home on the options bar and select Accounts.
      • Click Locate on the options bar.

   To access Accounts from another area of the program, do one of the following:

   • Click Home > Accounts on the menubar.
   • Click the down arrow next to Home on the options bar and select Accounts.
   • Click Locate on the options bar.

   2. In the Locate account dropdown menu, select Broker, Company, or Employee.
   3. In the Locate by dropdown menu, select the appropriate option.
   4. Select the suitable checkbox or checkboxes to the right.
      • Active
      • Inactive
   5. Enter the first few letters of the name, lookup code, phone number, etc. (depending on the selection in the Locate by dropdown menu) and press [Enter] or click Locate.
   6. The Results list displays all of the accounts that match the criteria you entered. Click on a column heading to sort the list by that category. For example, click the Last Name column heading to sort by last name in ascending order. To sort in descending order, click the Last Name column heading again.
   7. Highlight the desired entity in the Results list.
2. Click Commissions in the navigation panel or Areas > Commissions on the menubar. The Commissions screen displays.
3. Do one of the following:
   • Click the Add button .
   • Press [Insert] on your keyboard.
4. A list of criteria displays. The default selection for each criterion is All. To make specific selections for a criterion, click on the criterion and then click the Selected radio button on the right.

Click the Add button to the left of the Selected list. Click the checkbox for each applicable item and then click Finish or press [Enter].

To remove an item from the Selected list, click on the item and click the Delete button .

5. In the Agreement section, enter a beginning and ending Effective date or click the down arrow to the right of the fields to select a date from a dropdown calendar.
   
   To leave the beginning and/or ending effective date open, click the Open checkbox above the field instead of entering a date.
6. Enter a Description of the commission agreement.
7. Make a selection in the Commission dropdown:
   • Date Based: This option allows you to set up multi-tiered commission agreements that pay different commission amounts/percentages during defined periods of a policy term (such as each year of a multi-year policy). You can define date ranges in years or months and the commissions as flat fees or percentages. The policy/line’s effective date and the transaction effective date are used to determine the commission rate paid. For example, a producer might receive 10% commission for the first year of a two-year policy (new business) and 0% for the second year (Renewal). The producer will receive 0% commission on any transactions occurring during the second year of the policy term.
   • Premium Based: This option allows you to set up different premium ranges and commission amounts, using either a flat fee or a percentage. These calculations can be based on each individual policy or the producer's entire book of business. For example, a producer might receive 10% commission on premium in the $0-$1,000 range and 12% commission on premium in the $1,001-$10,000 range.
   • Revenue Based: This option allows you to define revenue ranges and commission amounts or percentages for any commission type. You can base these calculations on the revenue generated by each individual policy, the producer’s book of business, or the client’s account.
   • Risk Based: This option allows you to set commissions based on the number of Risks Insured or Total Eligible risks entered in the Line section of the policy detail. This commission can be a flat fee, a percentage of premium, or a flat fee per risk.
   • Standard: This option allows you to set a commission as either a flat fee or a percentage of premium.
8. Choose the commission Type.
9. Enter the Percent or Amount, whichever applies.

10. If you are entering a Standard commission agreement, click Finish to complete the workflow.
    
    If you are entering a commission agreement of any other kind, click Detail to define additional parameters for the agreement.
    
    Click Cancel to discard your changes.

11. If necessary, update the information on the Agreement tab.

    1. If applicable, change the beginning and/or ending Effective date, or click the down arrow to the right of the fields to select a date from a dropdown calendar.
       
       To leave the beginning and/or ending effective date open, click the Open checkbox above the field instead of entering a date.

    2. Change the Description of the commission agreement if desired.
    3. Change the Commission selection if necessary. Changing this selection removes any existing commission ranges for the agreement.
       
       If you choose a Risk Based commission, select the Tiered checkbox if applicable.
       
       If you select Standard, select a commission Type and enter the Percent or Amount, whichever applies.

12. Depending on your Commission selection on the Agreement tab, one of the following tabs displays:

• Date Based 

  Default ranges and commissions display for the agreement. You can modify these settings and/or add additional ranges if necessary.

  To edit the default settings, do the following:

  1. Click the Edit button .

  2. The Define Date-based Commission window displays. Select the Years or Months radio button to indicate how you will measure your date ranges. Changing this selection will clear any ranges you have entered and reset the default values.

  3. Select a range to edit in the list.

  4. Select or deselect the Open checkboxes as necessary and select start and/or end values from the dropdown menus. An Open start date is required for the first range; an Open end date is required for the last.

  5. Select the commission Type for this date range and enter the Percent or Amount, whichever applies.

  6. Repeat these steps to edit other date ranges. Click Add  to enter additional ranges, or Delete   to remove a range. At least two ranges are required.

  7. Click Finish when you have defined all ranges and commission rates.

• Premium Based

  This tab is enabled only if Premium Based is selected in the Commission dropdown menu on the Agreement tab.

  1. To add a commission for a premium range, select the appropriate radio button in the Premium section:
     • Individual policy: Calculates tiered premiums based on each individual policy.
     • Policy book of business: Calculates tiered premiums based on the producer's entire book of business.
  2. Do one of the following:
     • Click the Add button .
     • Press [Insert] on your keyboard.
  3. Enter a beginning and ending premium Range, or click the Open checkbox above the beginning and/or ending range field to leave the beginning or ending range open.
  4. Choose the commission Type:

  5. Enter the Percent or Amount, whichever applies.

  6. Click Finish or press [Enter] to add the commission.

  Click Add to add the commission and enter an additional commission.

   

  Click Cancel to close the window without saving any of the information.

• Revenue Based

  This tab is enabled only if you selected Revenue Based in the Commissions dropdown menu on the Agreement tab.

  1. To add a commission for a revenue range, select a radio button in the Revenue Based section:
  • Individual policy: Calculates revenue based on each individual policy.
  • Policy book of business: Calculates revenue based on the producer's entire book of business.
  • Client account: Calculates revenue based on all transactions for the client.
  2. Click Edit . The Revenue Based pop-up window displays.
  3. Do one of the following to add a revenue range:
  • Click Add .
  • Press [Insert].
  4. Enter the minimum and maximum revenue values for the Range, or select the Open checkbox for either field to leave the minimum or maximum value open.
  5. Repeat steps c and d until you have added all ranges.
  6. Choose the commission Type.
  7. Enter the Percent or Amount, whichever applies.

  Click Finish or press [Enter] to add the commission.

  Click Cancel to close the window without saving information.

• Risk Based

  This tab is enabled only if Risk Based is selected in the Commission dropdown menu on the Agreement tab.

  1. Choose the appropriate Risk: Risks insured or Total eligible.
  2. Click the Edit button .
  3. The Risk Based/Tiered Commission window displays. By default, the range is open and set to 0% commission. The first range must contain a minimum (Min) value, so leave the first Open checkbox selected. To set an ending value, deselect the Open checkbox for the end of the range and enter the desired value.
  4. Choose the commission Type:
  5. Enter the Percent or Amount.
  6. Click Add to enter the next range.
  7. The beginning value is one digit greater than the ending value of the previous range. Enter the ending value or select the Open checkbox to set the maximum (Max) value.
  8.  Choose the desired commission Type and enter the correct Percent or Amount.
  9. Repeat steps g and h until you have entered all ranges.
     
     Note: There must be a Min and a Max value.
  10. Click Finish when you have entered all ranges.
• Risk Based (Employees and Brokers) or Risk Based/Tiered Commission (Companies)

  This tab is enabled only if Risk Based is selected in the Commission dropdown menu on the Agreement tab.

  1. Choose the appropriate Risk: Risks insured or Total eligible.
  2. Click the Edit button .
  3. The Risk Based/Tiered Commission window displays. By default, the range is open and set to 0% commission. The first range must contain a minimum (Min) value, so leave the first Open checkbox selected. To set an ending value, deselect the Open checkbox for the end of the range and enter the desired value.
  4. Choose the commission Type:
  5. Enter the Percent or Amount.
  6. Click Add to enter the next range.
  7. The beginning value is one digit greater than the ending value of the previous range. Enter the ending value or select the Open checkbox to set the maximum (Max) value.
  8.  Choose the desired commission Type and enter the correct Percent or Amount.
  9. Repeat steps g and h until you have entered all ranges.
     
     Note: There must be a Min and a Max value.
  10. Click Finish when you have entered all ranges
13. When you have made the desired changes, click the X next to the open agreement in the navigation panel. Your changes are saved automatically.