What it is
An insurance agency holds client premiums as a fiduciary and earns commissions that arrive months after the sale. The main risks are misuse of fiduciary money, contingent commissions recognized too early and receivables and payables that do not reconcile to carrier statements.
This program covers commission and fee revenue, fiduciary cash and liabilities, producer compensation and acquisitions, and licensing and claims. It is a five-tab workbook with sign-off columns and a completion summary.
When to use it
- Auditing an independent agency, managing general agent or brokerage.
- Testing the contingent commission estimate at year end.
- Documenting fiduciary account procedures a lender or regulator asks for.
What’s inside
- Revenue steps by stream: new and renewal, fees, contingent and profit-sharing
- Fiduciary account confirmation and reconciliation steps
- Producer commission, acquired book and earn-out procedures
- Licensing, errors and omissions and trust account rule steps
Standard cited
This template follows ASC 606 / ASC 340-40. It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use.
Questions
How are contingent commissions recognized?
They are variable consideration under ASC 606. The entity recognizes an amount only to the extent a significant reversal is not probable. The program tests the estimate against carrier statements received later.
Are state fiduciary rules covered?
The program tells you to read the rules in each state of operation. They differ by state and the program does not restate them.
Does it tie to the fiduciary reconciliation workbook?
Yes. The related workbook in this library performs the year-end recomputation the program calls for.
Related templates
- Insurance Agency Fiduciary Funds and Commission Reconciliation
- ASC 606 Revenue Recognition Schedule
- Revenue Recognition Fraud Risk Presumption Memo (AU-C 240)
- Accounts Payable Confirmation (Vendor Statement Request, AU-C 505)
Last updated 11/05/2026. All free templates.