Glossary · Insurance agency commissions
Unpaid commission
Unpaid commission is commission an agency is owed on a policy transaction, under its agreement and schedule, that has not been paid on any carrier statement, most often a missed renewal, a new policy never linked to the agency’s code, or an endorsement the carrier did not commission.
What it means
Unpaid commission is the hardest error to see because there is no line to look at. A wrong rate shows up on the statement; a missing payment only shows up when you start from your own book and ask which policies should have been paid. IA Magazine’s What Compensation Administration Means to the Agent-Carrier Relationship describes the work agencies do to find it: “They’re comparing commission statements against carrier reports, tracking policy activity, checking renewals and trying to understand why a payment changed.”
How it arises: renewals the carrier pays under another code, policies moved in a book transfer, endorsements without a commission line, and commission after an appointment ends. Some states protect renewal commission in that last case; Washington’s RCW 48.17.591 says “The rate of commission for any policies renewed under this provision shall be the same as the insurance producer would have received had the agency agreement not been terminated.” Rules differ by state; check yours.
How it shows on a commission statement
It does not appear on the statement at all. You find it by listing the policies in your book that had a transaction due in the period and checking each one for a payment.
In reconciliation, and what Lapidar does
Lapidar starts from both sides: every statement line and every policy in your book. A policy with something due in the statement period and nothing paid is reported as Missing, with the commission expected from your book premium and schedule rate. Findings are remembered between runs and can be marked open, raised or resolved; the results page totals what is owed and not yet raised, and the printable report lists it per carrier.
Example
| Policy | Premium | Rate | Paid | Unpaid |
|---|---|---|---|---|
| EX-83011 | 1,800.00 | 12% | 216.00 | — |
| EX-83012 | 2,450.00 | 12% | — | 294.00 |
| EX-83013 | 980.00 | 12% | 117.60 | — |
| Total | 5,230.00 | 333.60 | 294.00 |
EX-83012 renewed but was not paid; $294.00 is outstanding. Commission rates on this page are invented; your agency agreement and commission schedule set the real ones.
Common mistakes to check
- Checking only the lines on the statement, which can never show a missing payment.
- Assuming the carrier will catch up on its own.
- Raising a missing renewal without the policy number, term and expected amount.
Questions
How do I find unpaid commissions?
Start from your book: list the policies with a transaction due in the period, then look for each on the statements. The ones with no payment are your unpaid list.
How long do I have to claim unpaid commission from a carrier?
It depends on your agency agreement and state law. Raise it as soon as you find it, with the policy, term and expected amount.
Do I still get renewal commission after a carrier terminates my agency?
In some states, on some policies, for a period. Washington’s RCW 48.17.591 is one example; check your state and your agreement.
Sources
- IA Magazine, What Compensation Administration Means to the Agent-Carrier Relationship, September 16, 2026. Retrieved October 14, 2026.
- Washington State Legislature, RCW 48.17.591: termination of agency contract. Retrieved October 14, 2026.
Lapidar is commission reconciliation software for independent insurance agencies, in its founding pilot. Related: commission variance.