Question

What is the Fee paid to an agent or insurance salesperson as a percentage of the policy premium?

A Annuity Correct Answer Incorrect Answer
B Paid up Correct Answer Incorrect Answer
C Semi-premium Correct Answer Incorrect Answer
D Commission Correct Answer Incorrect Answer
E None of these Correct Answer Incorrect Answer

Solution

A commission is a service charge assessed by a broker or investment advisor in return for providing investment advice and/or handling the purchase or sale of a security. Most major, full-service brokerages derive much of their profits from charging commissions on client transactions.

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