Loans > Loan Screens > Insurance Screen Group > Policy Detail Screen > Commission Information tab

Field

Description

Original Amount

Mnemonic: INXORG

Use this field to indicate the original cost your institution incurs as an incentive to branches or corporations to sell insurance policies. See below for more information.

For example, an insurance company pays 30 percent of premiums as a commission for all newly created policies. Your institution has an agreement with the branch to pay them 70 percent of those commissions for new policies, and the corporation gets 30 percent of those commissions. The institution will give the branch an additional 5 percent of commissions as an incentive (cost). If the Original Premium amount was $500:

•the Branch Income Original Amount would be $105 ($500 X .30 X .70 = $105);

•the Corporation's Original Amount would be $45 ($500 X .30 X .30 = $45);

•and the Cost Original Amount would be $7.50 ($500 X .30 X .05).

A cost of $7.50 gives the branch 5 percent more commission than the amount generated from the insurance company.

This amount can be amortized over time, or it can be taken as one lump sum. This amount is credited into the General Ledger account set up on the GOLD Services > General Ledger > Setup G/L and Commissions screen.

If a rebate is due back to the customer because of payoff or cancellation, the amount displayed in the Remaining Amount field below will be rebated. This rebated amount will also be debited from the General Ledger account set up on the Insurance Premiums G/L and Commissions screen.

During loan origination from GOLDTrak and the VSI Insurance transaction, this amount is automatically calculated and entered based on the percentage entered in the Cost Percentage field on the Setup G/L and Commissions screen.

Remaining Amount

Mnemonic: INXREM

Use this field to indicate the unearned amount of costs for your institution. In the event of the loan account being paid off or the selected insurance policy being canceled, any amount in this field will be rebated back to the customer. See also: Amortization Method.

Amortized Amount

Mnemonic: N/A

This field displays the amount of cost that has been earned for the selected insurance policy.

This field is calculated by subtracting the Remaining Amount from the Original Amount (see above). This calculation is also based on the Amortization Method selected.