Commissions (COM) transmits information regarding agent commission and compensation payments from insurance carriers to distributors for annuity and life insurance products.

Overview

Commissions (COM) transmits information regarding agent commission and compensation payments from insurance carriers to distributors for annuity and life insurance products. It also provides same-day money settlement. By reducing the turnaround time for processing and paying commissions, it allows sales representatives to be quickly compensated.

Who Can Use the Service

Insurance carriers, broker/dealers, banks, and insurance agencies affiliated with broker/dealers or banks and their agents are eligible for the service. Participants need to be full-service members of the National Securities Clearing Corporation (NSCC). Special Data-Services-Only (DSO) memberships are also available.  DSO membership does not include settlement services.

Benefits

With COM, customers can:

• Automate settlement of commissions and compensation dollars, along with all other financial transactions, through NSCC, eliminating numerous wire and manual check payments.
• Enable the payment of commissions on a daily basis.
• Increase efficiency and reduce costs by decreasing the resources needed to process commissions and expanding the volume of commissions that can be processed each day.
• Eliminate debit balances by allowing carriers to consolidate all commission payments and chargebacks applicable to a distributor’s account on a daily basis, thereby eliminating situations where debit balances exist due to chargebacks.
• Secure confidential data through DTCC’s Securely Managed and Reliable Technology (SMART) network, which provides centralized, end-to-end managed communications for all post-trade clearance and settlement processing.

How the Service Works

Using a mainframe or Internet connection, insurance carriers can electronically send one or more files a day containing commission information to NSCC, which then routes the information to the distributors and settles the monetary payments.

For More Information

Please contact Insurance & Retirement Services at 1-888-382-2721, or email us at insurance@dtcc.com.