Glossary
Agency Bill
A billing arrangement in which the agency invoices the insured, collects the premium, and remits it to the carrier net of commission.
Agency bill puts the agency in the middle of the money. It controls the client relationship and the timing of collection, and it retains commission at the point of remittance rather than waiting for the carrier to pay it.
The trade-off is administrative and fiduciary weight: receivables to chase, a trust account to maintain, and remittance deadlines that do not move because a client paid late. Reconciliation under agency bill has to track invoicing, collection, and remittance as three separate events.
See also
- Direct Bill vs Agency Bill — Two billing arrangements between carrier and agency: direct bill (carrier invoices the client) versus agency bill (the a…
- Remittance — The payment an agency sends a carrier for premiums it has collected on the carrier's behalf, net of the commission it re…
- Trust Account — A segregated bank account where an insurance agency holds premiums collected from clients on behalf of carriers. Strictl…