For commercial lines agencies
Commission reconciliation for commercial lines agencies
Commercial commission keeps moving after the policy is written: endorsements, audits months after expiry, agency bill statements you pay from, contingent payments once a year. This page says which of those Lapidar checks and which it does not.
In short
- Lapidar compares the total paid on each policy in the period with your book premium and rate. It does not calculate pro-rated endorsement premium, keep a separate audit rate, check what you owe on agency bill, or check contingent commission.
- Lapidar works from files: a book export with one row per policy, your commission schedule (carrier, line, new or renewal, rate) and the statements carriers sent, as CSV, XLSX or a PDF with selectable text. Scanned PDFs can’t be read; there is no OCR.
- Every finding (missing, underpaid, overpaid, paid twice, chargeback, not in book, or unchecked when there is no rate) points to the statement page and row or the book row.
Endorsements in the middle of the term
An endorsement that changes premium brings its own commission line, on the premium change the carrier charged, usually pro-rated for the rest of the term; commission on mid-term endorsements walks through the arithmetic.
Lapidar does not tell an endorsement line from the policy’s original line. It keeps one row per policy from your book and adds up every positive line for that policy in the period. When an additional-premium endorsement arrives in the same period as the policy’s commission and is not in your book premium, the policy shows as overpaid by about the endorsement’s commission. When it arrives on its own, the total falls short of the term’s expected commission and the policy shows as underpaid. Either way the finding points to the statement row, where the transaction type tells you what you are looking at. A return-premium endorsement is a negative line and is handled as a chargeback (see return premium).
Premium audits after the term
Auditable policies are written on an estimated premium and settled after the term; the commission line can appear months after expiration and should be matched to the expired term, as commission on premium audits explains. Lapidar matches by carrier and policy number, not by term. If the renewal keeps the same policy number, an audit line is set against the renewal row in your book; if the expired policy is no longer in your export, the line is reported as not in book. Your agreement may set a different rate for audit premium; Lapidar’s schedule holds rates by carrier, line and new or renewal only, so it has no separate audit rate.
Agency bill statements
On agency bill business the carrier’s account current lists the period’s transactions and the net it expects from you. Lapidar reads it like any statement, as long as each line has a policy number and a commission amount, and checks the commission on each line against your rate. It does not check the statement against your invoices or collections, or the net you owe; those steps, from reconciling agency bill and direct bill statements and agency bill collections, stay with you and your management system.
Contingent commission
Contingent commission is paid on a formula across your book with a carrier, such as loss ratio or growth, not per policy. When Lapidar reads a statement, a line with no policy number is skipped and listed as skipped, so a contingent payment is not checked against your agreement. Insurance agency profit sharing covers how those agreements work, and the contingent commission calculator gives a rough figure from your own numbers.
After the check
You mark each finding open, raised or resolved, and print a report per carrier to send. Lapidar never contacts carriers and makes no entries in your agency management system; corrections go there by hand.
Every supported format and limit is on the product page; the output is on the sample report (invented data). Other kinds of agency: personal lines agencies, agency cluster members.
Frequently asked questions
Does Lapidar calculate pro-rated endorsement premium?
No. It compares the total paid on a policy in the period with the book premium times your rate, and points to the statement rows. Working out what an endorsement should have charged is done from the endorsement itself.
Can I set a different rate for audit premium?
No. Rates are set by carrier, line and new or renewal business. An audit line is checked against the policy’s rate, so read audit findings with your agreement in hand.
Does Lapidar check what I owe the carrier on agency bill?
No. It checks the commission on each line of the account current against your rate. Invoices, collections and the net payable are outside what it reads.