Because life and health insurance coverage commissions are front-loaded, representatives typically don't get a commission after the third policy renewal. Sometimes, captive and independent agents may earn contingent commissions, which are incentive-based. Insurer or firms might set specific goals for attaining contingent commissions, such as: Reaching a particular volume of businessPolicy retentionGrowing a certain line of insuranceOverall profitability Overall, no matter the type of representative, the greater a representative's book of service, the more commissions she or he earns.

The majority of U.S. states have disclosure laws that need representatives and brokers to offer this details. Some insurance coverage representatives might receive quarterly, semiannual, or year-end perks based on their sales efficiency. For captive agents, performance rewards can include up to 20% or more of their income. Independent representatives normally do not receive

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