Glossary
Override Commission
Extra commission paid above the base rate, often to a general agent, aggregator, or agency principal on business produced by others.
An override compensates a party for the production of a downstream producer or sub-agency — a managing general agent taking a percentage on the business its appointed agents write, or a principal earning on a producer's book.
Overrides complicate reconciliation because the same premium generates commission at more than one level. The agency has to track both what it received and what it owes onward, and the two are calculated on different bases.
See also
- Base Commission — The standard percentage of premium a carrier pays an agency on a policy, before any contingent, override, or bonus arran…
- Managing General Agent — An intermediary granted underwriting authority by a carrier, able to bind coverage and often to handle claims on the car…
- Producer Split — The percentage of an agency's commission that is shared with the producer who wrote the policy. Splits often vary by lin…