Commissions Module - Lesson 2: Carrier Perspective vs. BGA vs. Advisor

The Commissions Module equips participants with a practical understanding of how compensation flows across carriers, BGAs, and advisors, and why it is central to advisor retention and firm health. The course covers first-year, renewal, and trail commissions, as well as product-specific differences across life, annuities, hybrids, long-term care, and Medicare products.

Learners will explore inforce transactions that impact pay, regulatory considerations in states like New York, and how to resolve commission errors quickly to maintain trust. The module also introduces the role of technology and reporting systems in reconciling payments, managing hierarchies, and ensuring compliance. By the end, participants will be able to interpret statements, anticipate commission impacts, and support accurate, timely compensation across diverse product lines.

Lesson Overview:

Carrier vs. BGA vs. Advisor Perspectives

This lesson explores the insurance distribution pyramid, showing how carriers, BGAs, and advisors each view commissions differently. It examines responsibilities, relationships, and compensation flows across the three levels. Emphasis is placed on how clear communication and understanding roles avoids confusion.

Learning Objectives

• Describe the carrier’s role in setting rates, rules, and paying commissions.

• Explain how BGAs serve as intermediaries and advocates for advisors.

• Recognize how advisors depend on BGAs for support and commission accuracy.

• Compare how compensation flows under direct pay and LOA models.

COURSE CONTRIBUTORS