What happens if a member transfers to a different plan type?

When a member transfers to a different plan type, renewal compensation must be recalculated to align with the new plan's specific compensation structure. Each plan type may have distinct benefits, premiums, and rules regarding compensation, which requires a reassessment of how commissions are paid out after the member's plan changes.

Recalculating the renewal compensation ensures that agents are compensated according to the terms of the new plan that the member selects, reflecting any changes in the coverage, pricing, or plan design. Doing so helps maintain the integrity of commission policies while also being fair to the agent based on the member's current status.

In contrast, while some situations might entail the forfeiting of commissions or application fees, these do not generally apply when merely transferring between plan types. This focus on recalculating renewal compensation emphasizes the importance of aligning agent compensation with the current and correct plan for the member.