How are agents' commissions paid?

Select one:

A. Commissions are added to the policy premiums.
B. Commissions are apportioned from policy premiums.
C. Commissions are paid entirely by insurers.



Answer :

Final answer:

Insurance agents are compensated through a mixture of salary and commission to incentivize performance and attract skilled individuals.


Explanation:

Agents' commissions in the insurance industry are typically paid through a combination of salary and commission, where the agent receives a fixed salary along with a percentage of the sales generated. This system helps in attracting more able agents and those less averse to risk due to the potential for higher earnings based on performance.


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