Producer codes

A producer code is a value that associates a producer with a commission plan. Producers have a producer code for every commission plan that producer uses. Every producer must have at least one producer code.

Producer codes are also used to associate policies with producers. When a policy that earns commission is bound, it must have a producer code for every relevant producer role.

When a policy has one or more producer codes, each code identifies:

  • The producer who earns commission on the policy.
  • The commission plan used to calculate and manage that commission.

Example: Producer codes

The following diagram illustrates an example of two commission plans that are associated with two producers using three producer codes.


Commission plans associated with producers through producer codes.

This example includes the following commission plans:

  • Gold-1 (primary producer earns 5%, secondary producer earns no commission)
  • Gold-2 (primary producer earns 10%, secondary producer earns 3%)

This example the following producers with the following producer codes:

  • Allrisk Insurance, with these producer codes:
    • AR-1, which is associated with the commission plan Gold-1
    • AR-2, which is associated with the commission plan Gold-2
  • Effective Insurance, with this producer code:
    • EI, which is associated with the commission plan Gold-2

Example: Policy with one producer code

The following diagram builds on the previous example to illustrate a policy that earns commission.


Producer with one producer code.

For policy PA-113, the producer code for the primary role is AR-2. Thus, the primary producer is Allrisk Insurance and this producer earns 10% commission. (AR-2 is associated with Gold-2, which specifies 10% for primary producers.). There is no secondary producer code, so Allrisk Insurance is the only producer.

Example: Policy with two producer codes

The following diagram also builds on the previous example to illustrate a policy that earns commission.


Producer with two producer codes.

For policy PA-747, there are two producer codes. The producer code for the primary role is AR-1. Thus, the primary producer is Allrisk Insurance and this producer earns 5% commission. (AR-1 is associated with Gold-1, which specifies 5% for primary producers.). The producer code for the secondary role is EI. Thus, the secondary producer is Effective Insurance and this producer earns 3% commission. (EI is associated with Gold-2, which specifies 3% for secondary producers.).