Which of the following would receive a commission from the sale of a policy?

• A. The client
• B. The agent who took the client's application
• C. The insurer
• D. The claims adjuster

Answer: (B)

Commissions are the compensation paid to the producer who sells an insurance policy. When a policy is issued, the insurer pays the agent a commission (often a percentage of the premium, with possible renewal commissions). The client pays the premium and receives the coverage, but does not receive a commission. The insurer is the company that issues and funds the policy and, in turn, pays commissions to the agent rather than to the client. A claims adjuster handles claims and is typically paid salary or fees, not commissions from selling the policy. So the person who earned the commission is the agent who took or wrote the policy.