Commission statement
A commission statement is the carrier's periodic report, usually monthly, of what it owes the agency on direct bill business. It lists each policy that generated commission that period: insured name, policy number, premium, commission rate, and the amount paid. Agencies reconcile it against their management system to confirm they got paid on every policy they placed.
Why it matters
A reconciliation compares expected commission with the carrier statement and the payment received. Differences can arise from timing, a changed rate, an endorsement, a cancellation, or a posting error. Investigating them keeps both the agency record and expected revenue accurate.
Start with the statement period and the carrier's commission basis. A policy that has not appeared may be waiting for issuance, premium collection, or a later cycle. Check those explanations before treating the difference as a missing payment.
How agencies handle them
Statements arrive as portal downloads, email attachments, or as data through IVANS, and the format varies by carrier. Someone in operations or bookkeeping matches each line to a policy in the management system and flags what does not tie out.
Base commission on the statement is separate from contingent or profit-sharing bonuses. Contingents are paid under a separate agreement, usually annually, based on the book's loss ratio and growth with that carrier.
Investigate one unmatched line
Start with the policy number, transaction type, statement period, and expected rate. Compare them with the agency record and payment. An endorsement adjustment or later payment cycle may explain the difference without a missing policy.
Common questions
What is return commission?
When a policy cancels midterm, the carrier takes back the unearned portion of the commission it already paid. It appears as a negative line on a later statement, which is one reason reconciliation matters.
Are contingent bonuses on the commission statement?
Usually not. Contingents are separate profit-sharing agreements paid on the performance of the whole book with that carrier, typically once a year. The monthly statement covers base commission on individual policies.
Part of the Relay insurance operations glossary. Updated 2026-07-11. See how we source content.
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