Commissions

Commissions

Insurance Company Products / Calculation Settings / Commissions

The insurance company's product level is the highest level where the user defines a commission per type of framework agreement for the needs of individual insurance contracts. Commissions for collective and collection insurance are entered by the user at lower levels - framework agreement, set, rate. The system then searches from the lowest level when creating a contract.

Field:

• Commission Code (Commissions Code)

  • A user creates a commission code

• Framework Agreement Type (Framework Agreement Type Code)

  • The user must select from the RPZ type. The field is required at the insurance company product level. It is used as part of the key when defining the commission for individual insurance contracts.

• Valid For (Valid For)

  • The user selects whether the commission will be valid only for new contracts (New Contract), or for all contracts (All Contract)

• The calculation method (Calculation Method)

  • Selects the user from the Percentage options (percent) /Amount (Amount)

• Calculation Base (Calculation Base)

  • The user selects whether it is the basis of the calculation

    • Expected premium – the system calculates premiums based on annual premiums

    • Real premium – the system takes the value from the insurance calendar for the insurance company

• Rate (Rate)

  • The user enters a rate value

• Valid From (Valid From)

  • The lower limit of the time limit of the commission's validity. If the user leaves the field blank, the time validity from below is unlimited.

• Valid To (Valid To)

  • The upper limit of the time limit of the commission's validity. If the user does not enter, the time validity from above is unlimited.

• Calculation Period (Calculation Period)

  • The user enters a time formula to create a commission calendar. E.g. 1M – monthly, 1Y – annually, etc.

• Disposable (One-time)

  • The user ticks in the case of a one-time commission

• Approximation (Approximation)

  • If the user checks this field, the system will recalculate the commission calendar according to the incoming commission if the commission for the period is higher. For individual insurance contracts, where the amount of the commission is not known in advance, a zero commission calendar is created. To define such a commission, the user must check the approximation field.

• Different levels of commissions (Different Levels of Commissions)

  • After checking the box, the system records only commissions entered through Rates in the period on the top bar

  • Rates In Period (Main Menu) (Rates In Period)

    • Each line specifies the rate for that time slot. The first rate is valid for 1 year, the second for 2 years. The last rate is valid until the end of the insurance contract – it does not depend on the specified period.

    • Result on the insurance contract - for a revenue commission code with different amounts, the system creates revenue commissions of the insurance contract for the period according to the period in the definition, e.g. According to the Calculation period, it then creates monthly lines of the commission calendar – the first year 10%, the next two years 5% and for the following period until the end of the insurance contract 0%.

• Entitled to commission (Entitled To Commision)

  • The user selects one of the options

    • Against payment (After Payment) – if the user has created and reconciled the trunk, the insurance premium is reconciled

    • At the beginning of the period (Start Period)

    • At the end of the period (End Period)

• Subsidy (Subsids)

  • The user ticks this field if it is a leasing subsidy (zero increase). In this case, the user must enter the amount of the subsidy in the following field. The entry is used to calculate the cost commission.

• Subsidy Amount (Subsidy Amount)

  • The amount of the subsidy is entered by the user as a percentage.