---
title: "What Is Hierarchy? Definition | Epic Life Glossary"
description: "A hierarchy is the chain of contracts that links an agent up through agencies or marketing organizations to a carrier. It decides who earns what from..."
url: https://epicline.preview.multisites.ai/glossary/hierarchy
publisher: Epic Life Group
apply: https://epicline.preview.multisites.ai/apply
quote: https://epicline.preview.multisites.ai/get-a-quote
---

Distribution structure

# Hierarchy

A hierarchy is the chain of contracts that links an agent up through agencies or marketing organizations to a carrier. It decides who earns what from each sale.

## Why it matters

Each level may take part of the commission difference as an override. A short hierarchy often means fewer splits. Carriers record the hierarchy on file, and a change usually needs a form or release. Agents should ask to see their position and the contract levels above and below them. A change in hierarchy can affect pay on future sales and sometimes on renewals, so confirm what moves.

Source: [naic.org](https://content.naic.org/insurance-topics/producer-licensing)

[Read next, for agentsBuilding an insurance agency: how overrides and downlines work, and what is legal](https://epicline.preview.multisites.ai/guides/building-an-insurance-agency-overrides-downlines)

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