---
title: "What Is Chargeback? Definition | Epic Life Glossary"
description: "A chargeback is when a carrier takes back part of an agent's commission because a policy lapsed, was canceled, or was rescinded within a set period..."
url: https://epicline.preview.multisites.ai/glossary/chargeback
publisher: Epic Life Group
apply: https://epicline.preview.multisites.ai/apply
quote: https://epicline.preview.multisites.ai/get-a-quote
---

Compensation

# Chargeback

A chargeback is when a carrier takes back part of an agent's commission because a policy lapsed, was canceled, or was rescinded within a set period after issue.

## Why it matters

Chargebacks mostly apply to advanced commission. The period is often the first year but varies by carrier and product. Agents can limit risk by confirming the customer can afford the premium, setting up automatic payment, and following up after delivery. Ask how an agency handles them before signing, since terms vary.

Source: [blog.pia.org](https://blog.pia.org/2025/07/28/when-carriers-request-commissions-back-understanding-chargebacks-contracts-and-agent-protections/)

[Read next, for agentsLife insurance chargebacks explained: how they work and how to protect your cash flow](https://epicline.preview.multisites.ai/guides/life-insurance-chargebacks)

## Where we use this term

-   [Captive vs independent insurance agent: who owns your book?](https://epicline.preview.multisites.ai/guides/captive-vs-independent-agent)
-   [Your first 90 days as a telesales life insurance agent: a week-by-week ramp](https://epicline.preview.multisites.ai/guides/first-90-days-as-a-telesales-agent)
-   [How to join an IMO: the questions to ask before you sign](https://epicline.preview.multisites.ai/guides/how-to-join-an-imo)
-   [IMO vs FMO vs MGA: which structure fits an independent agent?](https://epicline.preview.multisites.ai/guides/imo-vs-fmo-vs-mga)
-   [Inbound calls vs live transfers vs aged leads: how to compare cost per sale](https://epicline.preview.multisites.ai/guides/inbound-calls-vs-live-transfers-vs-aged-leads)

## Start your climb.

Tell us where you are today and request a call about licensing, training and the calls.

[Apply to join](https://epicline.preview.multisites.ai/apply)

Shopping for coverage instead? [Get a quote](https://epicline.preview.multisites.ai/get-a-quote)