CICA LIFE OF AMERICA – Commissions & Chargebacks

Commission Overview

Licensed and appointed agents who sell CICA Life of America products earn commissions based on their individual contract and upline agreement.

Commission types include:
• First-Year Commissions (FYC)
• Renewal Commissions (RENC)

Commission percentages and eligibility are defined in the agent’s contract.

Heaped Commission Structure

Many CICA Life of America products use a heaped commission structure.

This means:
• Higher commissions are paid in the first policy year
• Lower renewal commissions are paid in later years

Example:
• Monthly premium: $100
• First-Year Commission: 100%
• Renewal Commission: 1%

During year one, the agent earns $100 per month. After year one, the agent earns $1 per month.

Actual commission rates depend on the agent’s contract.

Advance Commissions – How They Work

Advance commissions are available on qualifying products based on the agent’s contract.

• Advance commissions pay 50% (six months) of the first-year commission upfront
• Paid after receipt of the first premium

Payment timing:
• ACH advance commissions submitted between Wednesday and Tuesday by 6:00 PM are paid the following Friday.

Advance Commission Requirements – Important Rules

To qualify for advance commission payment:
• ACH must be used as the payment method
• Recurring payments must be selected

If payment is made by credit card or as a one-time payment, commissions will be paid as-earned instead of advance.

ACH Reversal – 7-Day Rule (Effective 1/24/2025)

If an initial successful ACH payment is later reversed:

• The writing agent has 7 calendar days from the reversal date to submit another successful ACH payment
• If successful within 7 days → advance commission is paid
• If successful after 7 days → commission is paid as-earned

As-Earned Commissions – When They Apply

As-earned commissions are paid when:
• A policy is not eligible for advance commission from issuance, OR
• A policy becomes eligible for as-earned beginning in month 7+

As-earned commissions are paid monthly for premiums earned in the prior month.

As-Earned Commissions – Debit Balance Note

Once a policy pays commissions as-earned, those commissions are not applied to an agent’s debit balance unless the agent is terminated with an outstanding debit balance.

Chargebacks – Advance Commission Policies (Months 1–6)

If a policy with unearned advance commission terminates:

Months 1–3:
• 100% chargeback of advance commission
• Deducted from the agent’s next advance commission payment

Months 4–6:
• Pro-rata chargeback based on months in force

If no future advance commissions are earned, the chargeback is added to the agent’s debit balance.

Chargebacks – Death Claim Scenarios

If a policy terminates due to a death claim:

• Death within first 2 policy years with premium returned → full commission chargeback
• Death with policy in force less than 3 months → full chargeback
• Death in months 4–6 with no premium return → pro-rata chargeback

Chargebacks – As-Earned Commission Policies

If a policy paying as-earned commissions terminates:

Months 1–2:
• 100% chargeback of as-earned commissions
• Deducted from the agent’s next as-earned commission payment

Commission Reports – Where Agents Look

Agents can view commissions in the Agent Portal:

Account Balance – Post 9/1/24:
• Shows advance and as-earned commissions
• Displays running ledger and debit balance

Check Report – Post 9/1/24:
• Shows policy-level details for commission payments
• Click date or reference number for details

Upcoming payments can be previewed under:
• New Advances
• New As-Earned

Override Commissions – CICA Life of America

Override commissions are payments made to uplines, managers, or agency leaders for policies sold by the agents they supervise. These commissions vary by state.

State Licensing Requirements (Effective January 2026):
For the following states, both the writing agent and their upline must hold an active license in the state in order for the upline to receive override commissions:

• Florida
• Georgia
• Kentucky
• Louisiana
• Massachusetts
• Missouri
• Montana
• New Mexico
• New York
• Pennsylvania
• South Dakota
• Utah
• Virginia
• West Virginia

All Other States:
If business is submitted in a state not listed above, the upline is not required to hold an active license in that state to receive override commissions.

Important Requirement:
All agents must be appointed and licensed in the state where the client is physically located at the time of application.

Q: I need to transfer my agent contract.

To transfer your contract to a different agency or make changes to your contract (including level, hierarchy, or commission structure), please contact your upline for assistance. The required transfer form must be submitted by the IMO to our contracting team.

Release Guidelines

• Prior to a transfer, a Release Form with all required signatures must be submitted.

• If an agent has not written any business for six (6) months with their current agency, a Release Form is not required.

• If the transferring agent has no production and has been with the current agency for less than six (6) months, CICA Life of America Senior Management may approve the transfer without a Release Form.

• Commissions accrued while under the current agency will transfer to the new agency or upline.

• CICA Life of America reserves the right to report to Vector One.