As you receive your commission check this month, you’ll notice some changes to the way your commission is paid. These are the changes we announced in our November bulletin: Changes to Your Homeowners Commission Payments.
Your February check includes commission payment for premiums collected on effective policies from December 1 – December 31, 2021. Note, the monthlong delay in payment was temporarily necessary for the shift in payment schedule. By April, your check will include commission payment for premiums collected on effective policies from March 1 – March 31 (the prior month).
Because your commission is now paid when a policy becomes effective (vs. bound) AND once the premium is collected (vs. written), you will need to look at these dates (policy effective date and premium collection date) when reconciling your commission payments.
We anticipate you could see some fluctuation in your February and March commission amounts, as the new payment schedule filters through your book. You’ll see the most impact on policies with monthly pay plans.
For assistance, refer back to the examples provided in our previous bulletin, explaining how commission is paid for premiums collected via full pay, monthly and escrow bill.
ACH Payment is running late but is on the way.
Thank you for sending us your ACH Authorization forms. We received hundreds and we are carefully processing them. To ensure your payments are secure and accurate, you may get a call from our accounting team to verify your banking information. This is legit, so please answer. To avoid delays, please connect with us ASAP if we contact you. If you do not receive a call, that means you are all set.
Once your ACH Payment Form is processed, you will begin receiving direct deposit payments and electronic commission statements. Until then, it’s paper checks as usual. Our goal is to move everyone to ACH Payments this quarter, but we will provide updates as we make progress. Thank you for your patience.
As a reminder, this applies to your Homeowners business only. Commercial policy commissions are not impacted.