Commissions Module - Lesson 12: Inforce Transactions

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:

Inforce Transactions

This lesson covers how inforce transactions, such as renewals, conversions, reinstatements, and face amount changes, affect commissions. Learners will see how policy loans, withdrawals, and payment mode changes can lead to adjustments, chargebacks, or new compensation. Emphasis is on tracking and compliance in ongoing commission processing.

Learning Objectives

• Understand what inforce transactions are and how they impact commissions.

• Explain how renewals, conversions, and reinstatements affect compensation.

• Recognize when face amount changes generate new commissions or chargebacks.

• Identify the importance of persistency bonuses and ongoing tracking.

COURSE CONTRIBUTORS