YOU ASK:
What is the definition of Commission?
WE ANSWER:
The Commission is the insurance agent's or broker's fee for selling a policy. The agent or broker receives a portion of the policy premium as commission and he is expected to serve the needs of the clients even after the purchase of the insurance policy.
Commissions will vary depending on the type of insurance product being bought. Commission rates may also vary from one insurance company to another. The agent receives the biggest commission from the policy's premium for the first year. After that, the commission he gets on the yearly premiums is at a much smaller percentage. Sometimes, though, the commissions are only for the first year premium.
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