Case Split

The case split is entered on the Modify Policy Screen, Relations Tab.

The case split is used when more than one producer is involved in closing the case.  Once producer may have found or opened the case and a second producer may be involved in presenting and closing the case.  A third producer may be involved in the ongoing service of the case.

Section Of Modify Policy Relations Screen

Do not confuse the Case Split with paying a percentage of the Agency commission.  It is NOT a split with the agency.  It is a split among producers.  The rate table itself is designed to control payments based on the agency's commissions.

Case Splits And Commissions Based On Agency Commissions

Scenario: Two producers, one experienced and one inexperienced, split a case.  The agency pays commissions based on a percentage of what the agency earns (percentage of agency commission).  Producer One has a contract with the agency where he gets 30% of the agency's commission because he is new and also gets a fixed salary.  Producer Two is paid a first year commission of 60% of the agency's commission.

Assume the Agency first year commission is $10,000.

Assume the producers split the case 50/50 for the first year.

Applying the basic commission formula...

Producer One's Base Amount is $10,000.
Producer One's Commission Rate is 30%
Producer One's Case Split is 50%

Producer One's first year commission is $10,000 x .30 x .50 = $1,500.

Producer Two's Base Amount is $10,000
Producer Two's Commission Rate is 60%
Producer Two's Case Split is 50%

Producer Two's first year commission is $10,000 x .60 x .50 = $3,000

The Agency Total Payout is $4,500 and the Agency Net is $5,500.

This approach accurately reflects the agency's contract with each producer.  Don't forget, Producer One is also getting a salary, so Producer One is not being treated unfairly because he/she does not earn as much as Producer Two even when the split is the same.