Compensation

Commission Advance

A commission advance is an early payment of commission before the premiums it relates to are collected. It is the same idea as advance commission and can be reclaimed if the policy ends.

Why it matters

Some agents also use the term for a loan from an agency against future commission, which is a different arrangement with its own interest and repayment terms. Always ask whether an advance comes from the carrier or the agency, and what happens to the balance if you leave. Treat a loan-style advance as debt and compare its cost with other options.

Source: blog.pia.org

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