Commission Allowance Clause Samples
A Commission Allowance clause defines the terms under which commissions are paid to a party, typically in the context of sales or agency agreements. It specifies the percentage or amount of commission, the conditions for earning it, and the timing of payments, such as upon completion of a sale or receipt of payment from a client. This clause ensures both parties understand how commissions are calculated and distributed, thereby preventing disputes and providing clarity regarding compensation for services rendered.
Commission Allowance. The Reinsurer shall pay to the Ceding Company an amount (the “Commission Allowance”) at the end of the first and all subsequent Accounting Periods equal to (i) times (ii), where:
(i) equals the actual commissions paid to general agents, wholesalers, and marketing organizations by the Ceding Company during the current Accounting Period with respect to the Annuities; and
(ii) equals the Quota Share Percentage.
Commission Allowance. For each Accounting Period, the Commission Allowance equals the total amount of initial commission (i.e., not trail commission) paid to distributors of the Reinsured Contracts to reflect the receipt of additional premiums on the Reinsured Contracts. EXHIBIT E Form of Quarterly Accounting and Settlement Report
Commission Allowance. The Reinsurer shall pay to the Company a commission allowance equal to the following: a commission allowance on first year premiums at the rate of 35% on Plan OG2 (5 Pay Life), 40% on Plan OG3(10 Pay Life), 45% on Plan OG4 (15 Pay Life), 50% on Plans 801 (Whole Life), 810 (Whole Life), 821 (10 Year Term) and OG5 (20 Pay Life), 55% on Plan OG1 (Whole Life), and 60% on Plan 820 (Whole Life); a commission allowance on renewal premiums for new ordinary business (1997 issues) at the rate of 7% of premiums for policy years 2 through 10 and 3% of premiums thereafter; and a commission allowance on renewal premiums for ordinary and industrial (pre-1997 issues) at the rate of 10% of premiums for policy years 2 and 3, 4% of premiums for policy year 4, 3% of premiums for policy years 5 through 15 inclusive, 2% of premiums for policy years 16 through 20 inclusive.
Commission Allowance. The Reinsurer shall pay the Ceding Company a -------------------- Commission Allowance equal to 2.5% of the gross Policy premiums and deposits collected during the Accounting Period with respect to the Policies for years 2 and later.
Commission Allowance. Reinsurer shall pay Universal a commission allowance equal to the following: a commission allowance on first year premiums at the rate of 35% on Plan OG2 (5 Pay Life), 40% on Plan OG3 (10 Pay Life), 45% on Plan OG4 (15 Pay Life), 50% on Plans 801 (Whole Life), 810 (Whole Life), 821 (10 Year Term) and OG5 (20 Pay Life), 55% on Plan OG1 (Whole Life), and 60% on Plan 820 (Whole Life); a commission allowance on renewal premiums for new ordinary business (1997 issues) at the rate of 7% of premiums for policy years 2 through 10 and 3% of premiums thereafter; and a commission allowance on renewal premiums for ordinary and industrial (pre-1997 issues) at the rate of 10% of premiums for policy years 2 and 3, 4% of premiums for policy year 4, 3% of premiums for policy years 5 through 15 inclusive, 2% of premiums for policy years 16 through 20 inclusive and 0% thereafter ("Commission Allowance"). Except for the Commission Allowance payable to the Company as aforesaid, Reinsurer shall not be liable for any liabilities, losses, or expenses arising from claims of agents, brokers or other parties for commissions, service fees, or producer compensation, and Universal shall indemnify and hold Reinsurer harmless from any liabilities, losses, or expenses from claims of agents, brokers or other parties for such commissions, service fees, or producer compensation, and for any other claims of a similar or related nature, as more fully set forth in Article XIV below.
Commission Allowance. Subject to the limitations expressed in the immediately succeeding sentence, with respect to Policies issued on or before May 31, 1996, the Reinsurer shall reimburse the Company as a part of the Monthly Cash Settlement the Reinsurer's Portion of the actual Commissions earned on the Policies by the Company's agents based on the commission schedules in force as of the Effective Date of this Agreement. Such commissions shall not exceed, however, the amount or amounts, as the case may be, shown in the December 31 Actuarial Appraisal in respect to the Transferred Policies ("Commissions"). World Service agrees to indemnify and hold Reinsurer harmless from any liability, loss, or expense from claims of agents or brokers for commissions, service fees, or producer compensation in excess of said Commissions. With respect to Policies issued subsequent to May 31, 1996, the Reinsurer shall pay (i.e., allow) the Company as a part of the Monthly Cash Settlement the Reinsurer's Portion of the Commissions calculated in accordance with Exhibit 3.4 attached hereto. There shall be no increases to any of the commission schedules referred to herein without the express written consent of the Reinsurer.
Commission Allowance. For each Accounting Period, the Commission Allowance equals the total amount of commission paid to distributors of the Reinsured Policies to reflect the receipt of premiums on the Policies. Accounting Period: Calendar Year: Date Report Completed: General Account (Coinsurance) Separate Accounts (Modco)
1. Reinsurance Premiums
2. Net Reinsurance Loads & Charges
3. Reinsurance Claims [a + b + c]
a. Death Claims (i + ii)
i. Account Value
ii. Death Benefit in Excess of Account Value b. Withdrawals and Surrenders (i - ii) i. Account Value
Commission Allowance. The Reinsurer shall pay the Company a commission allowance equal to the lesser of (a) the actual commission liability that the Company has from time to time or (b) the commissions due to agents as set forth on the Actuarial Appraisal. Except for the Commission Allowance payable to the Company as aforesaid, the Reinsurer shall not be liable for any liabilities, losses, or expenses arising from claims of agents, brokers or other parties for commissions, service fees, or producer compensation, and the Company shall indemnify and hold the Reinsurer harmless from any liabilities, losses, or expenses from claims of agents, brokers or other parties for such commissions, service fees, or producer compensation, and for any other claims of a similar or related nature, as more fully set forth in Article XIV below.
Commission Allowance. The Reinsurer shall indemnify the Ceding Company for -------------------- commission allowances equal to 5 bps times its quota share of Account Value for years 2 and later with respect to the Policies.