Agent's Balance

(redirected from Agent Balances)

Agent's Balance

A commission that an insurance company owes to an insurance agent but has not paid. The agent's balance is created when the agent sells a policy to a client. It is a percentage of the amount the insurance company makes from the new policyholder.
References in periodicals archive ?
This is attributed to a variety of factors, including decline in retention levels, inflationary effect, insufficient margins, inefficient premium collection and high rates of agent balances.
2) Beginning January 1, 2006, Infinity began including corporate litigation expense on losses, except for class action lawsuits, and bad debt charge-offs on agent balances and premium receivables in underwriting income and the combined ratio.
The rating action reflects the pool's marginal operating performance, potential liquidity issues at the holding and operating companies, high geographic and product line concentrations, and an elevated level of agent balances, offset in part by adequate capitalization at year-end 2001.