Some policies, such as Universal Life and Variable Life and Annuity policies pay a different commission rate as the policy premium increases above a specific Target Premium. This additional premium is referred to as the Excess Premium and it pays a much lower commission.

Some countries have two levels of excess premium, with the second level of excess paying even less commission.  We refer to this as Excess 2.  Excess 2 is only used in life insurance policies.

Since commission payments calculate based on Modal Premiums, we refer to the Excess Premiums used in commission calculations as Excess Modal Premiums.