Producer Ownership

Objectives

After completing this lesson, you will be able to:

  • Describe the relationship between customers, policies, and ownership.
  • Add a match rule to a policy record.
  • Add a split commission to a policy record.

Producer Ownership

Ownership refers to the relationship between a customer’s policy and the producers involved in the sale. When a relationship is active, the producer is eligible to receive commission payments for that customer. For a simple example, let’s look at a scenario in which one of our agents, Deborah Willis, sells a large group policy to a new company, Page Mortgage Group. Since Deborah is making the sale, she is the Writing Agent and is also the owner.

Split Commissions

Often, more than one producer will be involved in selling a policy. If this is the case, the agent who made the sale is still the writing agent, but other agents may still have ownership. Using the same example as above, let’s say that Max Martinez is helping Deborah make sure everything goes smoothly with the Page Mortgage Group policy. Because of this, Saber Management is giving 80% of the commission to Deborah, and 20% to Max.

This is called a split. With a split, multiple Producers are assigned to a single customer. This allows flexibility in compensation rules; however, one producer has to designated as the Primary Owner. In this case, Deborah would be the primary owner.

A split can be equal to 100%, less than 100%, or greater than 100%.

Match Rules

In the first example, ownership of the policy is pre-determined. Another way to assign ownership is to use Match Rules. Match rules allow ownership to be assigned based on policy based fields, such as the product or business type, instead of assigning ownership manually. Keep in mind that match rules can be associated with several types of records, including transactions, policies and brokers.

Let’s look at an example of a match rule on a policy. Saber Management can use a match rules to assign ownership to Max Martinez if a policy is for medical insurance, and to Deborah Willis if the policy is for Property & Casualty.

To make this work, we would create two match rules. We can create these from the Customer record using the following steps:

  1. From the Manager portal, open Customers – Customer Searchand find a customer.
  2. Open the Producer Ownership tab.

    Note

    The form displays records in the CustomerMatch table.
  3. Add a new CustomerMatch record by selecting the Add (+) icon.
  4. Enter the details. In this example, a policy with a Product Type of Medical assigns 100% ownership to Max Martinez.
  5. Select OK.

Exercise: Add a policy and create a Customer Ownership record

In this exercise, you will search for the customer record for Page Mortgage Group you created earlier in this unit, add a policy for the record, and add both Deborah Willis and Max Martinez as owners.

Steps

  1. Search for the Customer record for Page Mortgage Group.

    1. From the Manager portal, select Customers – Customer Search.

    2. In the Search area, find the Name field and enter Page*.

    3. Select Search.

  2. Add a policy to the customer record.

    1. Select the Policies tab.

    2. Enter the following information for a group life insurance:

      • Policy ID: AF2005-001
      • Name: Page Mortgage Group
      • Sys Status: Active

        Note

        The date fields here are not required.

    3. Add a group life insurance policy effective May 1, 2023.

      • Select Add (+)
      • Enter the following information about the policy:
        • Policy ID: 20006-20230101
        • Name: Page Mortgage Group
        • Policy Issue State: California
        • Effective Date: May 1, 2023

    4. Select Save.

  3. Create a split in which Max Martinez is the writing agent and receives 80% of the split.

    1. Select the Ownership Assignment tab.

    2. Select Add (+).

    3. Enter the following details:

      • Sys Status: Active
      • Assigned Producer: MM-001 – Max Martinez
      • Assignment Percent: 80
      • Schedule ID: Group – Group Business

    4. Select Save.

  4. Assign the remaining 20% ownership to Deborah Willis.

    1. Sys Status: Active

    2. Assigned Producer: DW-001 – Deborah Willis

    3. Assignment Percent: 20

    4. Schedule ID: Group – Group Business

    5. Select Save

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