Glossary · Insurance agency commissions
Policies in force (PIF)
Policies in force (PIF) are the policies currently active, issued and not cancelled or expired, for an agency, a carrier or a producer; the PIF count is a common measure of a book’s size and retention.
What it means
PIF is a count, so a small auto policy and a large commercial package weigh the same. Agencies and carriers track it alongside premium and revenue. In an IA Magazine article on due diligence when buying an agency, Colby Allen names three measures of retention: client retention, policies in force and revenue retention. He adds that client retention and PIF are often the most common ways carriers show retention on a production report.
For commission checking, the in-force list is your expected side. Each in-force direct bill policy should produce commission lines in a predictable rhythm: at new business and renewal, with endorsements that change premium, and every month or quarter on an installment plan if the carrier pays as collected.
How it shows on a commission statement
PIF never appears as a line on a commission statement. Some carriers report a count on their production reports, and it can differ from yours. An in-force policy with no commission line when one was due is the missing-commission case. Before you raise it, check that the policy is still in force. In-force lists in an AMS go stale: policies lapse, aren’t renewed, or move to another agency by broker of record letter, and the record stays as it was.
Example
| Policy | AMS status | On statement | Carrier record | Result |
|---|---|---|---|---|
| EX-35011 | In force | Yes | In force | OK |
| EX-35024 | In force | Yes | In force | OK |
| EX-35038 | In force | Yes | In force | OK |
| EX-35045 | In force | No | Moved by BOR letter | Not missing: update the AMS |
| EX-35059 | In force | No | In force | Missing: raise with the carrier |
The AMS counts 5 in force; the statement pays 3. One gap is a policy that left by broker of record letter and needs a record update. The other is the one to raise.
Common mistakes to check
- Working from an in-force list that still holds lapsed, non-renewed or transferred policies, so most of the missing list is noise.
- Expecting a line every month from policies paid in full. Those produce lines at new business, renewal and when they change.
- Comparing your count with a carrier production report without checking what each one counts.
Sources
- IA Magazine, 3 Ways the Hard Market Impacts Due Diligence When Buying an Agency, by Colby Allen, July 1, 2024. Retrieved October 7, 2026.
Lapidar is commission reconciliation software for independent insurance agencies, in development. Related: why statements don’t match your AMS.