# Distribution Glossary

> 40 terms from the Insurance book's Distribution part, each defined in a line and linked to the chapter that explains it.

- **1033 waiver:** a regulator's written consent under 18 USC 1033(e) letting a person convicted of a felony involving dishonesty or breach of trust work in the business of insurance ([Producer Licensing & Appointments](https://www.syntaqx.com/books/insurance/producer-licensing#who-must-be-licensed)).
- **Account current:** an agency's periodic statement to a carrier of every agency-bill transaction and the net premium due after commission ([Commissions & Agency Accounting](https://www.syntaqx.com/books/insurance/commissions-and-agency-accounting#agency-bill-and-direct-bill)).
- **Agency bill:** billing in which the agency invoices and collects from the insured and remits premium net of its commission to the carrier ([Commissions & Agency Accounting](https://www.syntaqx.com/books/insurance/commissions-and-agency-accounting#agency-bill-and-direct-bill)).
- **Agency management system (AMS):** an agency's system of record for clients, policies across carriers, activities, accounting and commissions, kept current by carrier downloads ([Comparative Raters & Agency Systems](https://www.syntaqx.com/books/insurance/comparative-raters-and-agency-systems#agency-management-systems)).
- **Appointment:** an insurer's filing with a state naming a producer as its agent, required in most states before the producer acts for that insurer ([Producer Licensing & Appointments](https://www.syntaqx.com/books/insurance/producer-licensing#appointments)).
- **Book roll:** moving an agency's block of policies from one carrier to another at renewal ([Comparative Raters & Agency Systems](https://www.syntaqx.com/books/insurance/comparative-raters-and-agency-systems#downloads)).
- **Bridging:** handing a comparative rater's quote, with its data and quote reference, into the chosen carrier's portal to bind and issue ([Comparative Raters & Agency Systems](https://www.syntaqx.com/books/insurance/comparative-raters-and-agency-systems#how-comparative-rating-works)).
- **Broker:** a producer who represents the buyer in placing insurance, rather than an insurer ([Agents, Brokers & Channels](https://www.syntaqx.com/books/insurance/agents-brokers-and-channels#who-the-agent-works-for)).
- **Broker of record letter:** an insured's letter moving its account to a new broker or agent, effective on a date ([Agents, Brokers & Channels](https://www.syntaqx.com/books/insurance/agents-brokers-and-channels#who-the-agent-works-for)).
- **Captive agent:** an agent who sells only one insurer's products, often as an independent contractor running a branded office ([Agents, Brokers & Channels](https://www.syntaqx.com/books/insurance/agents-brokers-and-channels#the-channels)).
- **Chargeback (commission):** commission returned to the carrier when premium is returned on a cancellation or reduction, at the original transaction's rate ([Commissions & Agency Accounting](https://www.syntaqx.com/books/insurance/commissions-and-agency-accounting#clawbacks-and-chargebacks)).
- **Commission schedule:** the versioned rates in an agency contract by insurer, product, state and new or renewal business ([Commissions & Agency Accounting](https://www.syntaqx.com/books/insurance/commissions-and-agency-accounting#commission-schedules)).
- **Comparative rater:** software that takes a risk's details once and returns quotes from many carriers side by side ([Comparative Raters & Agency Systems](https://www.syntaqx.com/books/insurance/comparative-raters-and-agency-systems#how-comparative-rating-works)).
- **Compensation disclosure:** a producer's statement to a buyer of how it is paid, required of producers paid by the customer and, in New York, of all producers ([Agents, Brokers & Channels](https://www.syntaqx.com/books/insurance/agents-brokers-and-channels#who-the-agent-works-for)).
- **Consent evidence:** the record proving a consumer's consent to calls or texts: the language shown, sellers named, page, time, action and number ([Leads, Aggregators & Consent](https://www.syntaqx.com/books/insurance/leads-and-consent#consent-evidence)).
- **Contingent commission:** a commission from a carrier that depends on the claims experience (and often the growth or volume) of the producer's book, computed after a measurement period ([Commissions & Agency Accounting](https://www.syntaqx.com/books/insurance/commissions-and-agency-accounting#contingent-and-profit-sharing-commissions)).
- **Designated responsible licensed producer (DRLP):** the licensed individual an agency names as responsible for its compliance in a state, required for its business entity license ([Producer Licensing & Appointments](https://www.syntaqx.com/books/insurance/producer-licensing#business-entity-licenses-and-the-drlp)).
- **Direct bill:** billing in which the carrier bills and collects from the insured and pays the agency its commission by statement ([Commissions & Agency Accounting](https://www.syntaqx.com/books/insurance/commissions-and-agency-accounting#agency-bill-and-direct-bill)).
- **Direct Bill Commission Statement (DBCS):** a carrier's commission statement delivered to an agency's system by download for reconciliation ([Commissions & Agency Accounting](https://www.syntaqx.com/books/insurance/commissions-and-agency-accounting#commission-statements-and-downloads)).
- **Direct channel:** a carrier selling through its own website, app and call center with licensed employees ([Agents, Brokers & Channels](https://www.syntaqx.com/books/insurance/agents-brokers-and-channels#the-channels)).
- **Download (agency):** carrier-to-agency delivery of policy, claim, commission and document data into an agency management system ([Comparative Raters & Agency Systems](https://www.syntaqx.com/books/insurance/comparative-raters-and-agency-systems#downloads)).
- **Exempt commercial purchaser:** a large commercial buyer with a risk manager that, after disclosure and a written request, may buy surplus lines coverage without a diligent search (15 USC 8205, 8206) ([Agents, Brokers & Channels](https://www.syntaqx.com/books/insurance/agents-brokers-and-channels#surplus-lines-brokers-and-the-home-state-rule)).
- **Home state (surplus lines):** the insured's principal place of business or residence, or where most taxable premium is, the only state that may tax a nonadmitted placement ([Agents, Brokers & Channels](https://www.syntaqx.com/books/insurance/agents-brokers-and-channels#surplus-lines-brokers-and-the-home-state-rule)).
- **Independent agent:** a licensed agency appointed by several carriers that quotes and places business with any of them ([Agents, Brokers & Channels](https://www.syntaqx.com/books/insurance/agents-brokers-and-channels#the-channels)).
- **Just-in-time appointment:** an appointment filed when a producer's first business with the insurer arrives, rather than when the contract is signed ([Producer Licensing & Appointments](https://www.syntaqx.com/books/insurance/producer-licensing#appointments)).
- **Lead (insurance):** a consumer's quote request and contact details, with a consent record, sold to carriers or agents who will call or text ([Leads, Aggregators & Consent](https://www.syntaqx.com/books/insurance/leads-and-consent#lead-markets)).
- **Line of authority:** the class of insurance a producer license allows: life, accident and health, property, casualty, variable, personal lines, credit or a limited line ([Producer Licensing & Appointments](https://www.syntaqx.com/books/insurance/producer-licensing#lines-of-authority)).
- **National Producer Number (NPN):** the unique NAIC identifier for an individual or business entity producer, the same in every state ([Producer Licensing & Appointments](https://www.syntaqx.com/books/insurance/producer-licensing#nipr-the-npn-and-the-pdb)).
- **NIPR:** the National Insurance Producer Registry, the NAIC affiliate that runs the Producer Database and the gateway for licensing, appointments and terminations ([Producer Licensing & Appointments](https://www.syntaqx.com/books/insurance/producer-licensing#nipr-the-npn-and-the-pdb)).
- **Nonresident license:** a producer license from a state other than the home state, granted on the strength of the home-state license where states reciprocate ([Producer Licensing & Appointments](https://www.syntaqx.com/books/insurance/producer-licensing#resident-and-nonresident-licenses)).
- **One-to-one consent:** the FCC's 2023 rule limiting written consent to a single seller, vacated by the Eleventh Circuit in January 2025 and repealed in July 2025 ([Leads, Aggregators & Consent](https://www.syntaqx.com/books/insurance/leads-and-consent#the-one-to-one-rule-and-its-vacatur)).
- **Premium trust account:** the account in which a producer holds premium and return premium as a fiduciary, with a balance never below what it owes insurers and insureds ([Commissions & Agency Accounting](https://www.syntaqx.com/books/insurance/commissions-and-agency-accounting#trust-accounts-and-fiduciary-funds)).
- **Prior express written consent:** a signed written agreement authorizing a seller to deliver telemarketing calls or texts by autodialer or artificial voice to a designated number, required under the TCPA rules ([Leads, Aggregators & Consent](https://www.syntaqx.com/books/insurance/leads-and-consent#prior-express-written-consent)).
- **Producer:** a licensed agent, agency, broker or MGA that sells insurance, identified by its National Producer Number ([Producer Licensing & Appointments](https://www.syntaqx.com/books/insurance/producer-licensing#who-must-be-licensed)).
- **Producer Database (PDB):** NIPR's database linking state licensing systems, with every producer's licenses, lines and appointments, updated daily ([Producer Licensing & Appointments](https://www.syntaqx.com/books/insurance/producer-licensing#nipr-the-npn-and-the-pdb)).
- **Producer of record:** the producer under whose license and appointment a policy transaction was written ([Agents, Brokers & Channels](https://www.syntaqx.com/books/insurance/agents-brokers-and-channels#who-the-agent-works-for)).
- **Profit-sharing commission:** a contingent commission computed as a share of the margin between a target loss ratio and the producer's actual loss ratio ([Commissions & Agency Accounting](https://www.syntaqx.com/books/insurance/commissions-and-agency-accounting#contingent-and-profit-sharing-commissions)).
- **Surplus lines broker:** a licensed broker who places risks with nonadmitted insurers, files each placement and collects and remits the surplus lines tax ([Agents, Brokers & Channels](https://www.syntaqx.com/books/insurance/agents-brokers-and-channels#surplus-lines-brokers-and-the-home-state-rule)).
- **Termination (appointment):** an insurer ending a producer's appointment, reported to the state within 30 days with whether it was for cause ([Producer Licensing & Appointments](https://www.syntaqx.com/books/insurance/producer-licensing#terminations)).
- **Wholesaler:** a broker that places business for retail agents with markets they can't reach, usually surplus lines or specialty programs ([Agents, Brokers & Channels](https://www.syntaqx.com/books/insurance/agents-brokers-and-channels#the-channels)).

---

Canonical URL: https://www.syntaqx.com/books/insurance/glossary/distribution