What is an Override for Insurance?

An agreement between an insurer and intermediary (or between an insurer and reinsurer or a retrocessionaire) based on the percent of written (or ceded) premium that will be guaranteed income to the intermediary/insurer/reinsurer. There is often a credit offset for any other commissions (regular or contingent) that are paid. This raises the question of how fees paid to intermediaries by insureds are handled. It should be disclosed with income such as contingent commissions.

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