Given that life and health insurance coverage commissions are front-loaded, representatives generally don't get a commission after the 3rd policy renewal. Sometimes, captive and independent agents may earn contingent commissions, which are incentive-based. Insurance business or companies might set certain goals for accomplishing contingent commissions, such as: Reaching a particular volume of businessPolicy retentionGrowing a certain line of insuranceOverall profitability In general, no matter the type of agent, the higher a representative's book of service, the more commissions he or she earns.

Many U.S. states have disclosure laws that need representatives and brokers to offer this information. Some insurance agents might get quarterly, semiannual, or year-end bonus offers based on their sales efficiency. For captive representatives, efficiency rewards can add up to 20% or more of their earnings. Independent representatives generally do not get efficiency

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