Base Amount
Contents
The Base Amount is the "amount" or value used by the Commission Module to calculate a commission. The Base Amount x Rate = Commission.
The Base Amount can be any of the following:
Coverage Premium
If the rate table bases the calculation of commission on premium, then the base amount is the coverage's premium.
Agency Commission
If the producer or manager's commission is based on agency commission, then the base amount will be the the commission due (or posted to) the agency for that commission component.
Number of Participants
If the rate table contains an amount per participant, then the number of participants is the base amount used to calculate that component of the commission.
Policy Cash Value
In the case of trailer commission, the policy cash value is the base amount.
Producer's Commission
Managers' commission may be based on a percentage of one of the producers on the coverage. When this is the case, the producer's commission is the base amount.
Fixed Amount
When a fixed amount is used to calculate a commission component, the fixed amount is the base amount and the rate is 1.0.
Underlying Commission Formula
The underlying formula used in Advisors Assistant is Base Amount x Rate Table Value = Commission. The base amount may be any of the values stated above.
See Also