What Is Vested Renewals? Definition

Why it matters

They matter because renewals can be a long-term income source. Vesting may be immediate or require time or production. Ask whether vested renewals are paid by the carrier or the agency, and for how many years. Terms are contract-specific. Do not assume vested renewals follow you to a new agency without a written agreement that says so.

Source: law.cornell.edu

Where we use this term

Related terms

Vesting: Vesting means an agent gains a right to something over time or on meeting conditions, such as the right to keep earning renewal commissions after leaving. The contract sets the rules.
Renewal Commission: Renewal commission is the smaller commission paid in later years while a policy stays in force and the customer keeps paying. Not every product or carrier pays one.
Trail: Trail is an ongoing commission paid on a policy or account after the first year, often a small percentage. In life insurance, people use it for renewal pay, and in annuities it can follow assets.
Book Of Business: A book of business is the set of policies and customers an agent has sold and serviced. It is the source of renewals and future sales.
Release: A release is a written permission from an upline or marketing organization for an agent to leave and contract elsewhere. It may also mean a release of a carrier contract.

All 241 terms

Why it matters

Where we use this term

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