Commuted value payments are earned in the same way ordinary renewal commissions are earned depending on whether the agent is an employee or self-employed (RS 02505.160).

Some insurance companies make monthly payments based on specific insurance policies written and kept in force during a preceding period. The amount is:

• •

  computed on the policies involved,

• •

  in addition to regular renewals on other policies, and

• •

  not paid on account of retirement.

In other companies, agents relinquish anticipated renewal commissions in exchange for a different benefit or specific cash amount.

Such renewal commissions are paid on a commuted value basis. There is no industry-wide standard for determining the value of relinquished renewal commissions.