Calculating Advanced Commissions

SUBMIT ADVANCE:

To calculate your advance on submit commissions, use the following formula:

(Commissionable Amount) x (Field %) x (Advance %) x (Level %)

ADVANCE ON SUBMISSION CALCULATION EXAMPLE:

Company:                                                        LSW

Writing Date/Application Sign Date:        03/01/2011

Product Name:                                                Flex Life

Provider Reference:                                        5582

Field Percent:                                                  75%

Advance on Submission Percentage:              30%

Writing Agent:                                                Level 20 (VP)

Commissionable Amount: $1000.00 (Per Provider)

TA:   $1000 (Commissionable Amount) x 75% (Field %) x 30% (adv. on submission) x 30% (level 05) = $67.50

SA:   $1000 (Commissionable Amount) x 75% (Field %) x 30% (adv. on submission) x 10% (level 10) = $22.50

PVP: $1000 (Commissionable Amount) x 75% (Field %) x 30% (adv. on submission) x 15% (level 15) = $33.75

VP:   $1000 (Commissionable Amount) x 75% (Field %) x 30% (adv. on submission) x 45% (level 20) = $101.25

Total payment = $ 225.00

OR using your Commission Statement

Total Field Commission x Level % = Commission

$225.00 x 30% (level 05) = $ 67.50

$225.00 x 10% (level 10) = $   22.50

$225.00 x 15% (level 15) = $   33.75

$225.00 x 45% (level 20) = $ 101.25

Total payment $ 225.00

ISSUE ADVANCE:

To calculate your advance on issue commissions, use the following formula:

(Commissionable Amount) x (Field %) x (Advance %) x (Level %)

ADVANCE ON ISSUE CALCULATION EXAMPLE:

Company:                                                        LSW

Writing Date/Application Sign Date:        03/01/2011

Product Name:                                                Flex Life

Provider Reference:                                        5582

Field Percent:                                                  75%

Advance on Issue Percentage:                        45%

Writing Agent:                                                Level 20 (VP)

Commissionable Amount: $1000.00 (Per Provider)

TA:   $1000.00 (Commissionable Amount) x 75% (Field %) x 45% (advance on issue) x 30% (level 05) = $ 101.25

SA:   $1000.00 (Commissionable Amount) x 75% (Field %) x 45% (advance on issue) x 10% (level 10) = $   33.75

PVP: $1000.00 (Commissionable Amount) x 75% (Field %) x 45% (advance on issue) x 15% (level 15) = $   50.63

VP:   $1000.00 (Commissionable Amount) x 75% (Field %) x 45% (advance on issue) x 45% (level 20) = $ 151.88

Total payment = $ 337.50

OR using your Commission Statement

Total Field Commission x Level % = Commission

$225.00 x 30% (level 05) = $ 101.25

$225.00 x 10% (level 10) = $   33.75

$225.00 x 15% (level 15) = $   50.63

$225.00 x 45% (level 20) = $ 151.88

Total payment $ 337.50

Note: Commissionable amount is not displayed on commission statements.
Note: Above calculation is for illustration purposes only. Numbers may vary depending upon product, actual commissionable amount, field percent and agent level.