Agency and Producer Commission Income Add-On determines and reports agency “earned” commission policy by policy, payment by payment. Agencies “earn” sales commission upon receipts and deposit in the trust bank account of premium payments. This Add-On generates Commission Transfer Memos (CTM) for the agency to transfer “earned” commission income funds to the operating account.
NOBL Commission - Agency and Producer Commission Income
This Add-On also determines and reports agency producer commission by producer.
A. Why is NOBL Commission Needed
Currently, the agency's “earned” commission is not determined policy by policy, payment by payment. Most agencies transfer commission to the operating account based on needs not on what they “earn”. The lack of formal agency commission management is the second most important source of trust financial insolvency.
NOBL Commission will enable agencies to transfer to the operating account commission funds based on what is “earned”. Transferring more is a fiduciary duty violation. Agencies may pay more income tax than they should. Transferring less may understate the agency taxable income and possibly lead to IRS audits.
B. What’s Included
- Agency commission and fees calculation per policy, per premium payment;
- Agency Commission Transfer Memos (CTM) generated on as needed basis, typically bi-weekly
- Producer Commission and Fees reports generated on “as needed” basis, typically bi-weekly.
C. Management Reports
- Policy Commission Detail
- Commission Transfer Memos
- Agency Earned Commission Reports
- Producer Commission Reports
- Other reports are also available
D. How It Works
- NOBL automatically generates Earned Commission Reports
- Agency puts on hold any earned commission item listed on the report
- NOBL generates a new Commission Transfer Memo (CTM) if any commission item is put on hold
- Agency transfers commission funds to the agency operating account, signs, dates and saves the CTM
- Agency confirms in NOBL the transfer of commission funds.
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