Endorsements are defined as changes to policy coverages and conditions. Some endorsements result in a change to the Premium while others do not. Depending on the type of billing for the policy, endorsements can generate a number of transactions that are of interest to the agency. These include:
- Non-commission Revenue (fees)
- Receivables (funds to be collected from the insured)
- Payables (moneys to be sent to the carrier / MGA).
- Charge-backs are negative commissions resulting from a negative endorsement (cancellations).