Important Points for IC 26 - Life Insurance Finance Exam
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Some of the expenses of management are salaries, travelling expenses, auditor's remuneration, medical fees, advertisements, telephone charges, electricity charges, rent, depreciation, other miscellaneous expenses etc.
Commission payment it classified as : Commission on first premium, Commission on first year's renewal premium, Commission on renewal premium, Bonus commission
When the commission is paid to the agent, it is recorded by debiting the respective commission account and crediting the bank account.
Under reorganized system of working of LIC offices, each branch office is an independent accounting unit and prepares its own trial balance at the end of each month.
LIC agents are eligible to receive gratuity depending upon the number of qualified years and age and also to receive term assurance benefit in case the agent dies while the agency is in force.
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