Regulators, Lawmakers Eye Agent Commission Accounting Rules
November 25, 2020 by Allison Bell
State lawmakers and state insurance regulators could change accounting rules in a way that would cause headaches for some insurers that use outside companies to pay trail commissions to agents and brokers.
Some accounting specialists would like to see insurers record the trail commission liabilities when insurers first issue the affected policies. This is even if the agents and brokers have not yet locked in the right to get the trail commissions, according to documents posted on the websites of the National Council of Insurance Legislators (NCOIL) and the National Association of Insurance Commissioners (NAIC).
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