Mississippi Property & Casualty Practice Exam 2026 – Comprehensive Prep Guide

The term for the commission an agent can receive for new business is referred to as a basic commission. This type of commission is typically structured as a percentage of the premium for the policies that the agent successfully sells. It serves as the primary income source for agents as they build their client base and gain new accounts.

In contrast, other types of commissions, such as a renewal commission, are paid to agents for continuing to manage policies that they have previously sold, rewarding them for maintaining ongoing client relationships. Incentive commissions might be bonuses or additional payments tied to performance metrics, while a service commission usually pertains to fees earned when agents provide additional services or support for existing policies. Understanding these distinctions helps clarify the various ways agents are compensated in their roles.