This Commissions Guide article relates to ALI Insurance products
Connective will maintain this guide to the best of its ability but cannot guarantee that the information within is complete, and/or in line with the latest guidance and policies of the insurer. If you believe anything is missing or inaccurate, please contact us.
Contents:
Commission Rates
Commissions effective 22nd June 2022
Note: Connective retains 10% of all calculated commissions
Life Insurance Products: Loan Protection Plan
Commission | Rate | Notes |
Initial Commission | 55% of the annualized new business premium on Introduced Policies | No commission is payable for an increase in cover on an existing policy. |
Trail | 7.7% of premiums received on Introduced policies | Where there has been an increase in cover on an existing policy, trail commission will be paid on the increased premium amount. |
Service Commission | 3.3% of premiums received on introduced policies | Where there has been an increase in cover on an existing policy, service commission will be paid on the increased premium amount. |
Level Commission (Alternative) | 19.25 % of premiums received from commencement on Introduced Policies | Where there has been an increase in cover on an existing policy, level commission will be paid on the increased premium amount. |
General Insurance: QBE Home Plus Policy & QBE Home Plus Prestige Policy
Commission | Rate | Notes |
Initial Commission | 19.8% of net premiums received on Introduced Policies |
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Renewal Commission | 11% of net premiums received on Introduced Policies | Where there is an increase in the premium on an existing policy, commission will be paid on the increased premium amount. |
“Net Premium” means the gross premium less any taxes, duties, GST or levies that are payable (including any type of government charge).
Payment of commission is dependent upon the Customer identifying the Authorised Representative at the time of policy application.
Clawbacks
Loan Protection Plan
Where the sum insured is reduced within 24 months of its commencement date, a proportion of the initial commission paid by ALI to a broker in respect of that Introduced Policy is repayable by the broker to ALI. The clawback will apply to the premium difference.
The amount to be repaid will be calculated as follows:
Cancellation, lapse, or reduction | Clawback |
0-12 Months | 100% of initial commission |
13-24 Months | 60% of initial commission |
General Insurance
When an introduced policy is varied or cancelled for any reason, a proportion of the commission paid by ALI Group to a broker in respect of that Introduced Policy may be repayable by a broker to ALI Group.
Commission will be repayable by a broker based on premium refunded to a customer as a result of a variation or cancellation of an introduced policy.