Definition: In income, a person who engages in the business of selling insurance policies for their clients or other individuals. Income of an insurance agent refers to the amount of money that an insurance company collects from its clients, including premiums paid by them on behalf of their policyholders. The income is usually used to pay the agents' salaries and other expenses related to running a successful insurance agency. In addition to the basic monthly premium payments, there may be additional fees or commissions earned for various services provided by an insurance agent such as providing assistance with claims processing, negotiating discounts, or securing more favorable insurance rates. The income of an insurance agent is not simply the amount paid out to clients; it also includes the profit that they make from selling policies. This includes both commissions on sales made and profits earned on premiums collected by the agency itself. For example, if a company charges $50 for a policy that covers an average loss of $100 per year, and this policy is sold for $800 in premiums, then the income would be calculated as follows: Income = Commission + Profit Income = ($800 - $100) + ($800
(Loss / Average Loss)) = $700 + ($800
0.9) = $700 + $720 = $1420 Thus, the income of an insurance agent for selling a policy in this scenario would be $1420.

income of insurance agent