How do carriers pay commissions?

Depending on the carrier, the transaction date for payments might vary as well as fees and taxes.

Openly

Commissions are paid 100% upfront in the policy effective month for any policy that has had a first payment made.  Openly charges a policy fee or tax where permissible.  The fee is either $50 or $75 and the tax might vary, both of them are considered non-commissionable. 

 

Clearcover

Commissions are paid 100% upfront.  They are paid  the month following the effective date of the policy only when a first payment has been made.  Clearcover charges fees where permissible.  Fees can range from $0.50 to $35 and are considered non-commissionable. 

 

Aon Edge

Commissions are paid 100% upfront following the month the policy is written.  Where permissible, taxes and fees may apply to the policy and are considered non-commissionable.   

 

Cover 

A policy has to be considered in-force for commissions to be calculated.  In-force is defined as an active policy.  Commissions are earned by the policyholder making a payment.   The commission rate is calculated on the payment amount as opposed to the written premium earned.  Examples:  If a customer pays monthly, then the commission is based on that one month payment.  If a customer pays in full, then the commission is based on the full term premium amount paid.  

In the state of Texas, insurance providers are required to charge $4 per motor vehicle and this charge is applied again when changing vehicles.  This fee is paid to the state.  This fee is non-commissionable and not part of the commission calculation. 

 

Coterie

Commissions are paid 100% upfront, the month following the effective date of the policy.

 

Get Covered (HO-4)

Commissions are paid 100% upfront, the month following the effective date of the policy. Cover applies $20 in fees to each policy which are non-commissionable. 

 

Get Covered (Rent Guarantee)

Commissions are paid on a monthly basis after each payment of premium is collected. 

 

MileAuto

Commissions are paid as it is earned after payment of the policy.  This will always be monthly and payment will be made the following month. 

 

Pouch

Commissions are paid 100% upfront following the month the policy has been written.  There is a $30 policy fee that is fully earned and non-commissionable. 

 

Haven Life

Commissions are paid 100% upfront following the month the policy has been written. 

There is a policy fee that is excluded and considered non-commissionable. 

 

Pie

Commissions are paid 100% upfront following the month the policy has been written.