Return Commission


Definition of "Return commission"

Return of a pro rata portion of an agent's commission for a policy that is canceled prior to its expiration date. A commission is paid to an agent in the expectation that the premium will be earned over the life of a policy. If the policy is canceled, a portion of the unearned premium (either pro rata or short rate) also must be returned to the policyowner.



Search Real Estate Glossary

Related Real Estate Glossary terms

Related Real Estate FAQ