ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Definition: Commission is the incentive received by the insurance agent or salesperson for the sales achieved in a given period. Description: Commission is generally paid as a percentage of the premium on the insurance policies.

Detailed explanation-2: -When a policy is sold to you, an insurance agent earns a commission.

Detailed explanation-3: -For 15 years, the maximum commission an agent gets is approximately 25%.

Detailed explanation-4: -What is the difference between a Buyers Premium and a Seller commission? The sellers commission is the fee charge to the seller by the auction company for their services. This fee is usually a percentage of the sale price. The buyer premium is the fee added to the auction price to determine the final contact price.

Detailed explanation-5: -Vested for Commission means that a Participant has a vested right, pursuant to the terms of the Participant’s Associates Agreement, to receive renewal commissions that are payable on policies sold by the Participant (regardless of whether such vested amount is less than 100%, or is for a limited time period).