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:
Contracting- Multiple sets of contact information
> Addresses
> Phone numbers
> Email addresses - Unlimited hierarchy
- Multiple open contracts
- Multiple channels
- Dynamic hierarchy
- Tax rules
- Notes system
> Agent specific notepad
> Message priority feature
- State license
- Appointments
- State and company specific rules
- License renewal
- 1st and 2nd renewal notices
- Renewal fees
- Continuing education requirements
- Validation
- 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
- Training allowance
- Expense allowance
- Trail commissions
- Bonus
> Table driven
> Accumulate points
> Multiple thresholds/rates
> Catch up
- On submit
- On premium
- Anticipated premium
- 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
- User defined rules
- Vest until date or duration
- Collection fees
- Revert commissions
- Online views
> Statement
> Balance
> Annualization details - Statement
- Earnings reports
> Minimum
> By state
> Gross - 1099-MISC forms and e-filing
- Clearinghouse
- Report scheduler
- Multiple statement frequencies
- Financial assignment
- Deductions
- Adjustments
- Hold options
- Third-party payee
- Check writing
- EFT
- Salary options
- Deferred compensation
- Loans with auto-repay