Definition of "Return commission"

Jacqueline Butterworth real estate agent

Written by

Jacqueline Butterworthelite badge icon

Ingram & Assoc Hopewell

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.

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