Graded commission

{
  "id": "MLC-T-INS-001653",
  "term": "Graded commission",
  "field": "Insurance and risk management",
  "definition": "A system for compensating insurance agents or brokers where the commission rate varies based on factors such as the volume of business written, the type of policy, or the policy's duration. Higher commission rates may apply to larger policies or those with longer terms, incentivizing agents to sell more profitable or stable products. This structure contrasts with a flat commission rate, which remains constant regardless of these factors.",
  "url": "https://mlchart.com/terminology/insurance/graded-commission/"
}