🧾 Carrier Contracts, Appointments & Profit-Sharing
Agencies must be formally appointed by carriers to sell their products. These relationships define commission structures, underwriting authority, and eligibility for profit-sharing bonuses.
📘 Carrier Appointments
A carrier appointment authorizes an agency to submit business and bind coverage. Appointments typically require licensing verification, production commitments, and adherence to underwriting guidelines.
📄 Agency–Carrier Contracts
Contracts outline the terms of the relationship, including:
- Commission rates
- Underwriting authority
- Market access rules
- Branding and compliance requirements
💰 Profit-Sharing & Contingent Bonuses
Many carriers offer bonuses based on:
- Growth — New business and retention.
- Loss ratios — Profitability of the agency’s book.
- Volume — Total premium placed with the carrier.
These bonuses can represent a significant portion of agency revenue and incentivize strong underwriting discipline.
