What Is Full Contract? Definition

Why it matters

IMOs and agencies may hold full contracts and pass on a slightly lower level to their agents, keeping the difference as a spread. An agent can only get a full contract by meeting carrier rules. Exact percentages differ by carrier and product and are not public. Do not assume a posted number applies to you, because each carrier decides who qualifies.

Source: law.cornell.edu

Where we use this term

How to join an IMO: the questions to ask before you sign

Related terms

Contract Level: A contract level is the percentage tier of a carrier's commission schedule that an agent is paid. A higher level means a larger share of the premium as commission.
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.
Commission Spread: Spread is the difference between two commission levels in a hierarchy, such as an upline's contract level minus the agent's level. The upline keeps it as an override.
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.
Independent Marketing Organization (IMO): An IMO, or independent marketing organization, is a company that recruits independent agents and gives them access to carrier contracts, training, leads, and support. It is not an insurance carrier.

All 241 terms

Why it matters

Where we use this term

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