Okay, when ACA first rolled out, we were to get 6% commission on the gross premium (including subsidy), right?
Should those commissions follow the gross premium through rate increases? Or is it just supposed to be frozen to the initial premium?
I've reconciled a few times in the past my l&h commissions, but only if they were showing up on my commission report. I wasn't actually double checking if they were paying commission based upon the correct premium amount.
I was anticipating my Jan commission statement to be higher than Dec of 2016 because of the 40-70% rate increases we had starting in January, plus some of the new business I wrote. It was actually $400 less.
I'm going through and seeing that they are paying commission on reduced premiums, sometimes several hundred dollars per month. And they did this all of 2016 as well. For example:
Husband and wife
Gross Premium $1,609.68 for January 2017. They paid me commission based off of $756.74 premium (which is neither the gross nor the net premium, I have no clue where this number came from).
Then I looked at my 2016 commission statements, and same thing. They calculated the commission based upon $756.74 instead of what the actual gross premium was (which was $960.43).
I'm confused here. Before I furiously start making my excel spreadsheets and contacting commissions department, did I just miss something when all of this was going on initially?
Another aspect that confuses me, is that some accounts correctly went up with the rate increases.
Should those commissions follow the gross premium through rate increases? Or is it just supposed to be frozen to the initial premium?
I've reconciled a few times in the past my l&h commissions, but only if they were showing up on my commission report. I wasn't actually double checking if they were paying commission based upon the correct premium amount.
I was anticipating my Jan commission statement to be higher than Dec of 2016 because of the 40-70% rate increases we had starting in January, plus some of the new business I wrote. It was actually $400 less.
I'm going through and seeing that they are paying commission on reduced premiums, sometimes several hundred dollars per month. And they did this all of 2016 as well. For example:
Husband and wife
Gross Premium $1,609.68 for January 2017. They paid me commission based off of $756.74 premium (which is neither the gross nor the net premium, I have no clue where this number came from).
Then I looked at my 2016 commission statements, and same thing. They calculated the commission based upon $756.74 instead of what the actual gross premium was (which was $960.43).
I'm confused here. Before I furiously start making my excel spreadsheets and contacting commissions department, did I just miss something when all of this was going on initially?
Another aspect that confuses me, is that some accounts correctly went up with the rate increases.