This incentive may be based on a small percentage of the first-year commission or a fixed-dollar amount per new policy sold.
What does FYC stand for?
FYC stands for First-Year Commission
This definition appears somewhat frequently and is found in the following Acronym Finder categories:
- Business, finance, etc.
See other definitions of FYC
We have 28 other meanings of FYC in our Acronym Attic
- Freeze Your Buns Off
- Freeze Your Butt Off
- Find Your Best Place
- First Year Biology Teaching Development Group (University of Sydney; Australia)
- Family, Youth and Community Services
- Fanshawe Yacht Club (Ontario, Canada)
- Farnham Youth Choir (Surrey, England)
- Fight Your Corner Ltd (UK)
- Fine Young Cannibals (band)
- First-Year Colloquium (various schools)
Samples in periodicals archive:
One North Carolina insurer, Wellpath, reported that the MLR efficiency rule caused it to reduce first-year commissions for individual policies from 27% to 14%.
Dennis Zahrbock, CFR CLU, ChFC Many years ago the life insurance industry paid a reasonable first-year commission and a reasonable annual renewal commission.
said that is because oftentimes a broker or agent switches plans to gain a hefty first-year commission.
Under terms of the agreement, the commission, the core of an agent's compensation, is based on three factors: the size of the agent's "book-of-business" (the dollar amount of premiums associated with an agent's sales), the "persistency rate" (the degree to which the policies the agent sells stay in force, basically over a 10-year period), and an agent's first-year commissions.
Another produced an 870% increase in first-year commissions in 2006.
LeadsROI is a free application that allows agents and other financial professionals to pull together a variety of figures - the number of leads, cost per lead, percentage closed, annual premium per closed policy and first-year commission (percentage).
Tactics such as the financing of new agents and the payment of annualized first-year commissions can have a significant effect on the level and quality of new business produced.