Commission chargeback
Also called: chargeback, commission clawback, clawback
A commission chargeback is a carrier taking back commission it already paid, usually because a policy was cancelled, lapsed or replaced within a set period.
Chargebacks are most common on advanced commissions, where the agent was paid upfront for commission not yet earned. If the policy ends early, the unearned part is recovered from future payments.
Tracking chargebacks by agent and by carrier shows where policies aren't sticking, which is often an early retention warning.
Chargebacks that aren't tracked can quietly turn a good month into a loss, and they distort agent payouts.
"The chargeback on that cancelled policy came out of next month's advance."
How should an agency track commission chargebacks?
Record every chargeback by policy, agent and carrier, link it to the original commission, and apply it in agent payouts according to the agency's rules. Rising chargebacks are also an early retention warning.