What Is Contract Level? Definition

Why it matters

Levels depend on the agent's channel, volume, and the deal with the carrier or IMO. Street level is the base most carriers offer, and higher levels need an upline or special agreement. The same policy can pay two agents different amounts. Always ask for the level in writing for each carrier.

Source: law.cornell.edu

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Related terms

Street Level: Street level is the base commission rate a carrier pays to an agent contracted directly with no extra contract uplift. It is the entry tier on the commission schedule.
Full Contract: A full contract is the highest commission level a carrier offers on its schedule for a given product. Agents with it receive the maximum share of premium that the carrier pays.
Override: An override is extra commission an upline earns on the sales of agents beneath them. It is often the gap between the upline's contract level and the writing agent's level.
Commission: Commission is the pay an insurance agent earns from a carrier when a policy is sold and stays in force. It is usually a percentage of premium set by the carrier and the agent's contract level.
Upline: An upline is the agent, agency, or organization above another agent in the contracting hierarchy. The upline often provides training, contracts, and support, and may earn an override.

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Why it matters

Where we use this term

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