Why it matters
It arises when commission is advanced and the policy ends early. The amount equals the part tied to unpaid months. It shows up as a debit on the commission statement. If an agent leaves with a balance, the carrier or upline may still collect it, depending on the contract. Example: if a customer cancels in month four of a twelve-month period, the agent may owe back the remaining months.
Source: blog.pia.org
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