(1) In insurance, a certain percentage of premium produced that is retained as compensation by insurance agents and brokers. Also known as acquisition cost. (2) In reinsurance, the primary insurance company usually pays the reinsurer its proportion of the gross premium it receives on a risk. The reinsurer then allows the company a ceding or direct commission allowance on such gross premium received, large enough to reimburse the company for the commission paid to its agents, plus taxes and its overhead. The amount of such allowance frequently determines profit or loss to the reinsurer.
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(i) The remuneration paid to an Agent for the introduction of business, usually in the form of a percentage of the premium. Insurance Agents and brokers are usually compensated by being paid certain percentages calculated on premium they produce. Such an allowance is known as commission. (ii) Commission allowed by the Reinsurer to the Ceding Company on the premium ceded. Besides, covering the original acquisition cost of the Ceding Company, a margin is allowed for acquisition cost of expenses.
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MEDICAL,USA: Amount of money paid to an insurance agent for selling and servicing an insurance policy. Usually a commission is calculated as a percentage of the premium.
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UK: the remuneration paid to an agent or broker for the introduction of business, usually in the form of a percentage of the premium (see also cedant’s commission and contingent commission).
Tag: RAW
Commission disclosure
ICOB Rules require insurance intermediaries dealing with general commercial customers to disclose, if requested to do so, their commission plus any commission received by any affiliated companies. See DISCLOSURE 4.
Commission of Authority
A document outlining the powers delegated to an agent by an insurer.
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The power designated to an agent by an insurance company.
Commission on Accreditation of Allied Health Education Programs (CAAHEP)
Group that accredits proprietary, community college, or trade technical schools medical assisting program. Students who wish to sit for the Certified Medical Assisting (CMA) examination provided by the American Association of Medical Assistants (AAMA) should select a CAAHEP-approved school for his or her education as a medical assistant.
Commission on Professional and Hospital Activities (CPHA)
Nonprofit, nongovernmental organization in Ann Arbor, Michigan, established in 1955, that collects, processes, and distributes data on hospital use for management, evaluation, and research purposes. Two main programs of CPHA are the Professional Activity Study (PAS) and the Medical Audit Program (MAP), which represents a continuing study of hospital practice. CPHA maintains the coding system for the international classification of diseases.
Commission Reinsurance
Commission allowed by the Reinsurer to the Ceding Company on the premium ceded. Besides, covering the original acquisition cost of the Ceding Company, a margin is allowed for expenses.
Commission, Reinsurance
Refer: “Reinsurance, Commission”
Commissioner
See: Commissioner of Insurance .
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The title of the head of most state insurance departments.
Commissioner of insurance
At the state level, the highest regulator of insurance, elected to protect the interests of the policy owner.
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MEDICAL,USA: State official responsible for the enforcement of laws pertaining to insurance in the respective states. The commissioner’s title, status in government, and responsibilities differ somewhat from state to state, but all states have an official with such responsibilities regardless of his or her title. Also known as Insurance Commissioner, Superintendent of Insurance, or Director of Insurance.
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The official in a state (or territory) responsible for administering insurance regulation sometimes called the superintendent or director of insurance.
Commissioner’s method
System for calculating modified net premiums and reserves for life insurance policies.