Compensation Management System
CMS (Compensation Management System) by LIDP is the complete solution for agent
contracting, licensing, compensation, and reporting. CMS offers support for state licensing,
appointments, and state specific rules for license validation, compliance is assured. License
renewal processing is aided by automatic generation of notices to the agent and collection
of renewal fees.
CMS is a very flexible contract and hierarchy system that supports simultaneous open
contracts and multiple channels for a single agent. The hierarchy is built dynamically as
needed, which reduces the maintenance necessary when contracts or reporting relationships
change. History of how the hierarchy looked at any point in time is always available.
The CMS commission calculation engine contains the functionality to handle the most
complicated commissions. All this power is controlled by tables that allow specification of
commission schedules by agent contract, source system, plan, duration, age, payment
source, and many other factors. Support for annualization of commissions is extensive, with
options to advance any factor of the annual commissions upon submit or premium payment.
Annualized commissions are tracked by policy, earned when premium is applied, and are
recovered if the policy terminates.
A table based bonus system supports accumulation of bonus points and payment of
supplemental compensation when thresholds are reached. Bonus points can be based on
premium, earned commissions, number of cases, writing agent commissions, and several
other factors. Bonus payment can be deferred until the next quarter or year.
When an agent has been terminated, vesting options are applied. User configured rules
determine how much of the residual commissions will continue to be paid and for how long.
The rules can vary for different contracts, agent service duration, and even type of
commission.
Disbursement of agent earnings is just as flexible. Monies can be partially or fully assigned
to another agent or agency. Agents can be set to be paid on one of seven payment
frequencies ranging from annually to daily. After processing federal withholding, deductions,
garnishments, levies, third party payees, loan repayments, and deferred compensation, the
remaining earnings can be paid via check or EFT. Agents can also be paid through the DTCC
interface.
All commission activity is viewable via an online statement that follows commission cycle
dates. Detail of annualized commissions by policy with the outstanding balance can be
reviewed online as well. Additional views of pending policies, commissions by policy, and
financial balances are also available. Commission activity can even be exported into a
spreadsheet program. Financial accumulations are kept for state and federal tax reporting.
CMS Features Overview
CMS includes tools to aide in the conversion and migration of agent information and
contracts from legacy systems. See all the features below:
Annualization
Contracting
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Multiple sets of contact information
> Addresses
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On submit
On premium
Anticipated premium
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> Phone numbers
> Email addresses
Unlimited hierarchy
Multiple open contracts
Multiple channels
Dynamic hierarchy
Tax rules
Notes system
> Agent specific notepad
> Message priority feature
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Licensing
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State license
Appointments
State and company specific rules
License renewal
1st and 2nd renewal notices
Renewal fees
Continuing education requirements
Validation
Commissions
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Table driven
> Contract
> Plan
> Duration
> Issue age
> Source system
Percent of premium
Percent of face
Percent of writing agent commission
Carve out options
Contest period rate specials
Pre-calculated feeds
Service fees
Supplemental Compensation
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Training allowance
Expense allowance
Trail commissions
Bonus
> Table driven
> Accumulate points
> Multiple thresholds/rates
> Catch up
Any factor on annual commission
Increasing percent
Multiple levels of caps
Multiple years to earn back
Policy level detail and balancing
Recovery
Advance fee
Interest on unearned balance
Vesting
User defined rules
Vest until date or duration
Collection fees
Revert commissions
Reporting
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Online views
> Statement
> Balance
> Annualization details
Statement
Earnings reports
> Minimum
> By state
> Gross
1099-MISC forms and e-filing
Clearinghouse
Report scheduler
Disbursements
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Multiple statement frequencies
Financial assignment
Deductions
Adjustments
Hold options
Third-party payee
Check writing
EFT
Salary options
Deferred compensation
Loans with auto-repay