Compensation

Production Bonus

A production bonus is extra pay for reaching a set amount of sales or premium within a stated period. Carriers and agencies use it to reward volume.

Why it matters

Targets may be based on premium, policy count, or both, over a month, quarter, or year. Payment may be reduced if policies lapse. Terms vary by carrier. Read the qualifying products, since some are excluded. Do not plan on a bonus as steady income, because carriers can change programs. Ask whether lapses reduce the payout.

Source: law.cornell.edu

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