Glossary · Insurance agency commissions
Policy rewrite
A policy rewrite replaces an existing policy with a new one, with the same carrier or another, usually by cancelling the old policy and issuing a new policy number rather than endorsing or renewing it.
What it means
Agencies rewrite a policy to move an account to another carrier, to change its program or form, or to take over an account after an agent of record change. Colby Allen, writing in IA Magazine about due diligence when buying an agency in a hard market, describes an agency that was “rewriting customer policies with their other carriers that were open to new business” after one carrier’s rate increases. On broker of record business, an expert in a Big “I” Virtual University answer treats the letter as a stopgap until the account is rewritten with a signed application.
The line between a rewrite, an endorsement and a renewal is not fixed. One carrier handles a change as an endorsement where another cancels and reissues. Carriers and agency agreements also differ on whether a same-carrier rewrite pays as new business or as renewal.
How it shows on a commission statement
For commission, a rewrite is two transactions. The old policy cancels, usually with a chargeback on the unearned premium. The new policy pays as new business or as renewal, depending on the carrier and your agreement. The new policy number breaks any match on number alone, and the two lines can land on different statements months apart, or on two carriers’ statements if the account moved.
Example
| Policy | Transaction | Premium | Paid | Expected | Result |
|---|---|---|---|---|---|
| EX-33402 (old) | Cancellation | −1,500.00 | −180.00 | −180.00 | OK |
| EX-33951 (new) | New business | 3,200.00 | 320.00 | 384.00 | Paid as new business |
| Net | 140.00 | 204.00 | Short 64.00 |
Matched on policy number, EX-33402 is a chargeback and EX-33951 is unrelated new business. Side by side, the rewrite paid $64.00 less than the example agreement allows.
Common mistakes to check
- Matching on policy number only, so the old and new policy never meet and the chargeback looks like lost income.
- Counting the chargeback without netting the commission paid on the new policy.
- Paying a producer the new-business split on a rewrite of an account the agency already had, where your producer agreements treat it as renewal.
- Missing the second half when the new policy went to another carrier and sits on a different statement.
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.
- Big “I” Virtual University, Should We Obtain Signed Applications from Our New Insureds We Obtain Via Broker of Record?, Ask an Expert answer, February 4, 2026. Retrieved October 7, 2026.
Lapidar is commission reconciliation software for independent insurance agencies, in development. Related: why statements don’t match your AMS.