First-year commission (FYC)
Also called: FYC, initial commission, first year commission
First-year commission (FYC) is the commission paid on a policy's first year in force, usually the largest commission the policy will produce.
For many products, the first-year rate is much higher than the renewal rate that follows. Production reports often track FYC separately because it measures new business.
For Medicare Advantage and Part D, CMS sets limits on broker compensation, with separate amounts for initial and renewal years.
FYC shows how much new business an agent is writing; renewals show how much of it stays.
"Our production report separates first-year commission from renewals so new business is easy to see."
What is the difference between first-year and renewal commission?
First-year commission is paid for a policy's first year in force and is usually the higher rate; renewal commission is paid for each later year the policy stays in force.
General information, not legal advice. Rules change; check current CMS, FCC and carrier guidance.