First Year Commission definition
Examples of First Year Commission in a sentence
First Year Commission Rate -------------------------- Issue Age Non-Smokers Smokers Regular Guaranteed Issue: 0-40 77% 48% 41-45 77% 43% 46-50 61% 27% 51-55 35% 11% 56-60 17% 4% 61-65 8% 4% 66+ 4% 4% Select Guaranteed Issue: 0-40 82% 65% 41-45 82% 57% 46-50 70% 38% 51-55 52% 15% 56-60 34% 4% 61-65 14% 4% 66+ 4% 4% Guaranteed Issue is available for ages 71 and above by exception only.
Policies issued on substandard tables higher than Table 6 will pay the same dollar First Year Commission and Renewals as would be payable if the policy were issued on a Table 6 rating.
For a partial reduction of a DOI coverage during the chargeback period First Year Commission Earned x (new amount of insurance / previous amount of insurance) No chargeback would apply if a DOI coverage is reduced to pay policy costs.
On Flexible Premium Adjustable Life Insurance Series II, III, IV and Juvenile-Issue and Flexible Premium Variable Life contracts which terminate during the first contract year, First Year Commissions based on premiums up to target will be the product of the First Year Commission rate and the lesser of (1) premiums paid and credited on the contract, and (2) one-twelfth of the Target Premium times the number of full months the contract remained in force.
The maximum First Year Commission for deposits to any Individual Life policy will be based on the maximum first year deposit that would be payable if the policy was exempt and did not result from a term conversion.
Override Credits and Recognition Credits generated by the original insurance policy will be adjusted to reflect the amount of First Year Commission the Advisor is entitled to retain on that policy.
First Year Commission Issue Age Commission Rate --------- --------------- 0-63 50 % 64-68 47.5 69-70 45 71-72 42.5 73 40 74-75 37.5 First Year Commission is a percentage of all premium paid and credited in the first contract year up to but not exceeding the amount required to pay the annual cost of insurance, the cost of any supplemental benefits and riders issued with the basic contract and first year loads.
The amount of such payment shall be the Annualized First Year Commission.
The amount of First Year Commission the advisor is entitled to retain on the converted portion of the original insurance is: (Annualized First Year Commissions x Number of Months in Effect) / 12 Any adjustment will be the difference between the amount of the First Year Commissions previously paid on the converted portion of the original insurance and the amount calculated by the above formula.
Where the chargeback formula uses First Year Commission Earned, in the first coverage year an adjustment will be made to make the paid commission equal to the earned commission prior to any chargeback calculation.