Administrative Charge
Insurance companies often foresee the need to collect revenue from administrative fees in addition to insurance premiums. Administrative charges are usually incurred when a client needs to cancel or make a change in his policy “mid-term,” or after the beginning of a new policy year.
For example, he or she might be getting married, moving to a new house, buying a new car or having a baby. Unfortunately, these situations will most likely incur an administrative charge that they probably did not expect.
Sometimes you can reduce or avoid these charges by making the change yourself online, but many companies charge a fee no matter how the change is made. There is always the hope that the changes you make to your policy will result in a lower insurance premium to help make up for the administrative charge.
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Finance: What is commission?112 Views
finance a la shmoop. what is commission? well it's the greatest motivator for
salespeople in the world. it's the money some people make above and beyond their [ commission explained on a large screen]
salary. a little monetary carrot dangling out in front of a salesperson to you
know encourage them to sell sell sell. alright you're an agent who just sold a
house good for you. you get a 3% Commission. the house went for a million
bucks well you get 30 grand for the privilege or at least your brokerage
does, and then you get some piece of that. ok now you're the stock broker who sold
3 million shares of stock. well good for you
you get four cents a share in Commission 120 grand in the pocket of your
brokerage and you get some piece of that Commission. you're the Hollywood agent[equation]
who just inked Brad pitiful into a movie deal worth 20 million bucks, well good
for you your agency gets a 10% commission or two
million dollars. yeah that's for a Dewey Cheatham and Howe agency best one in
Hollywood. yeah they rep Harvey Weinstein. now for someone who's attempting to sell
a polished version of that Harvey Weinstein story well that's a commission
impossible. [man frowns]
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