Creating Rate Tables

Overview

Every policy has to have a payee. You can set up manual rate tables when adding payees to a policy, or you can create predefined rate tables. A rate table tells AMS+ how much commissions or premiums to pay out.

If you find yourself reusing the same payout scenario, a predefined rate table can help you save time and prevent errors during payee setup. Learn how to create predefined rate tables in this article.

IN THIS ARTICLE

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Video guide

The basics of rate tables (7:04)

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Creating a rate table

Below are the basic steps to create a rate table. If your agency has unique or complex payout scenarios, please contact the Client Success Team for assistance.

To create a rate table:

On the Commission > Settings > Rate Tables page, click “Create New”.

Click “Edit Rate Table” to name your rate table and save.

Give it a descriptive name that is easy to identify in a dropdown list. For example, if you plan to pay 100% of the policy’s commission to a single payee, name the rate table something like “100% of Commission”.

Click “Edit Rates” to start adding the rules to the rate table.

Click “Create New”, then edit the rate settings.

Always specify the rate type and rates/amounts. The Carrier, Coverage Type, Carrier Product, and time period settings are only needed in certain situations. See the Rate settings table in this article for more details.

Save.

You can keep adding rates or start applying your predefined rate table to policy payees and payee schedules. See the Example rate tables section in this article for a few common payout scenarios.

Rate settings

Setting	What it does
1. Carrier*	Use if you want commissions from policies with the specified carrier to be linked to the policy.
2. Coverage Type*	Use if you only want commissions from policies with the specified coverage type to be linked to the policy.
3. Carrier Product*	Use if you only want commissions from policies with the specified carrier product to be linked to the policy.
4. Revenue Type	Use if you only want commissions from policies with the specified revenue type will be linked to the policy. Please note, your agency may not need to use this setting.
5. Rate Type	Specify how much commissions you want the policy to pay to the payees. See the Rate types table in this article for more details on the different rate types.
6. Incoming Rate / Payable Rate	Incoming Rate is a percentage of the policy’s premium that the carrier is paying you. Payable Rate is a percentage of the amount received that you are paying out.
6. Incoming Amount / Payable Amount	Incoming Amount is a flat dollar amount that the carrier is paying you for a policy. Payable Amount is a flat dollar amount that you are paying out.
7. Specify a time period	Use if you want to build in adjustments to your rate table. Typically used to change rates after the first year has passed. Based on the effective date on the policy.

*This setting is optional and only needed if you’re using the same payout scenario across multiple policies.

Rate types

Setting	What it does
% of Commission	Use to pay all or a percentage of commissions based on the total commissions received for the policy.
% of Premium	Use to pay all or a percentage of commissions based on the policy’s premium.
Flat Amount	Use to pay a flat dollar amount regardless of the policy’s premium or commissions received.
Per Life	Use to pay a flat dollar amount per the number of lives on the policy.
% of Remainder	After all other splits have been processed, this rate will balance out the policy’s remaining commissions. Please note, to allocate all remaining commissions to a single payee, add a rate for 100% of Remainder.

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Example rate tables

See below for a few common payout scenarios. If your agency has unique or complex payout scenarios, please contact the Client Success Team for assistance.

100% payout

This is the most simple payout and it's typically used when the agency (i.e. house account) or agent receives all commissions for a particular policy.

The simplest and easiest way to do this payout is by using the “% of Commission” rate type.

75/25% split

This payout is typically used when the agency wants 75% to go to the agency (i.e. house account) and 25% to the agent.

On the Commission > Rate Tables page, click "Create New".

Click “Edit Rate Table” to name your rate table and save.

Give it a descriptive name that is easy to identify in a dropdown list. For example, if the split is 75% of commission, name the rate table something like “75% of Commission”.

Click "Edit Rates" to start adding your rules.

Click "Create New".

For this example, set the rate type to "% of Commission" and the payable rate to 75%.

Save.

Follow these steps to create another rate table with a payable rate of 25%.

Rate change after first year

If a policy is paying a different commission rate after its first year, you can set up your rate table to account for these changes.

You’ll need to add at least two rates to your rate table, but you may add as many rates as you want to cover multiple renewal scenarios.

For the first rate:

Select the rate type and enter the rate values.

Checkmark the “Specify a time period” box.

Enter 1 - 12 in the month fields.

Save.

With this setup, AMS+ will look at the rate along with the “Bill From Date” on your commission statement and the “Effective Date” on the Policy > Details tab to determine if a policy is in its first year.

For the second rate:

Follow steps 1 and 2 above.

Enter 13 in the “Start” month field and leave the “End” month field blank.

Save.

AMS+ will start using this rate after the first year has passed.