COMMISSION REDUCTIONS Clause Samples
The COMMISSION REDUCTIONS clause defines the circumstances under which the standard commission payable to a party, typically a broker or agent, may be decreased. This clause outlines specific events or conditions—such as discounts, concessions, or negotiated price reductions—that trigger a proportional reduction in the commission amount. By clearly stating when and how commissions can be reduced, the clause helps prevent disputes and ensures that compensation aligns with the actual transaction value, thereby promoting fairness and transparency in financial arrangements.
COMMISSION REDUCTIONS. Notwithstanding the foregoing, the following commission reductions shall apply to all DISTRIBUTOR Fees and Sales Commissions, except as otherwise noted, under the circumstances described below.
(A) REDUCTIONS FOR PURCHASE PAYMENTS AT AGE 81 AND LATER. A 50% commission reduction shall apply with respect to Purchase Payments made on or after the Annuitant's eighty-first birthday (regardless of whether the Contract has a Contingent Annuitant). Such commission reduction is not applicable to trail commissions.
COMMISSION REDUCTIONS. If commissions to Supervisors or Agents are reduced for any reason, Foresters’ payments to the General Agent will be adjusted in the same proportion. Full commissions are payable on substandard extra premiums except in the following cases for which commissions on the extra premium are not payable during the first policy year, but are payable thereafter:
COMMISSION REDUCTIONS