LFG
If a Broker has their Commissions Pended due to an invalid License/Appointment, how would you remedy this? (Multiple Answers Accepted)
First, check to make sure they have a proper license with a proper date. Make sure the SITUS state matches the State on the Group, etc.
Name the type of entities of Broker in PRU (There are 3) Which entity is used for Net Commission transactions
Brokers, Firms, TPAs
TPAs
What is a Schedule A 5500 and how are Premiums and Commissions calculated for this Document
Compliance doc
Premiums calculated by payment date
How does the Upstream Broker setup work? Bonus: What Appointment type does the downstream broker need to have in order to properly pay upstream (There are two answers)
Pays upstream to another broker configured in the setup.
Commissions or Assigned
Explain the difference between PEPM (PPPM) and PEEPM?
Per Employee Per Month
Per Eligible Employee Per Month
What is a non Commissionable transaction, and what makes it different than other payments?
It does not count towards Commissionable Premium. If you have a $100 invoice and $90 is paid with a normal payment and $10 with a noncommissionable txn, then the broker would only earn Commissions based on the $90 of premium
Means the Broker can't earn their Commissions. Can be configured at the Broker level or also individual Commission Setup level.
What is a Commission Agreement and how can it be created (2 ways)
By batch or CRM
Official agreement between broker and group
Name at least 3 ways Commissions could be taken from a broker / Aka what causes a reversal of Commissions
1. Invalidate a Commission Setup
2. Unapply a Payment
3. A retro change
4. A termination of the billing group
5 A termination of the policy
Explain what happens in Graded Commissions when Commissions are to be reversed, what tier does it come off?
The most recent tier used
Explain the $25 minimum threshold rule? What happens if two payments from the same benefit account total over $25?
If a broker earns under $25 then it will not be issued by the Issue Disbursement Payment batch. If the payments total over $25 then the Batch should issue it
What is Pass Through Commissions and how is it calculated?
It's a Commission Style that is set up manually in the invoice by the user and does not need the Due Batch.
What is the Premium Paid no Commissions report?
Answer is in the name
Lets assume a broker is on 20 different Commission Setups. If we wanted to change all 20 Commission Setups to a different broker, how would we?
If a Broker pays upstream to another broker, where do we expect the Due Line items and Commission Statement to display on - the upstream or the downstream broker
The Upstream Broker
The Heaped Premium works differently than Premium amounts for other Commission types. Where are the Heaped Premium amounts kept and what makes Heaped Premium unique?
Heaped Premium is kept in the Heaped premium grid. It is different because the premium is tied to each individual coverage's premium, which makes this type of Commission style unique.
How would you go about adding a Net Commissions setup in the system? Include all steps
Setup needs a TPA
BG needs the TPA linked to it
Net Commissions need to be checked on the Billing Group
Generate invoice, open the Net Commissions window
Explain a potential issue that could happen with the Commission Statement?
Many answers are correct
What is a Negative Balance Writeoff
An NBW is a type of transaction that allows the Broker's negative balance to be negated via a writeoff.
Describe a retro broker scenario and how it works?
Don't feel like typing the answer
Explain each individual batch in the Commissions Job Flow and what it does?
If you make an retro-adjustment to a coverage, how do you go about seeing that adjustment on the invoice you generate? Explain the difference between a debit adjustment and a credit adjustment
You generate the next invoice and see the adjustment
Debit = Increase in Premium, Requires Payment
Credit = Decrease, Doesn't Require
Look up the Report, find the Artifact ticket
If a Broker owes money, through Advance or a Lien/Levy, and the balance of the Advance/Lien is larger than the amount of Commissions they earned, what happens? Do they earn any Commissions?
It draws down the Advance balance until the Advance runs out. Broker won't earn anything until later
If you have 2 billing groups (1 life on each), each with $100 premium and each group has one month paid off and the Commission Setups are:
1 Flat Percent Setup for 10%
1 Flat Amount Setup for $50 per month
1 PPPM setup, $5 per life
$10 Flat % for BG 1
$10 Flat % for BG 2
$50 Flat Amount
$5 PPPM for BG 1
$5 PPPM for BG 2
$80 total