Chapter 8. Case Study: Commission System

Introduction

McMillan Insurance is a midsize health insurance company located in a midsize city in the middle of the United States. McMillan has grown through acquisition, and until recently one of its practices was to let each company keep its own identity when dealing with anyone outside the walls of headquarters. This included the relationships with independent agents and the resulting commission structures. This meant that Arthur, the manager of the commissions area, had to deal with a slew of different very unique commission rules down to the individual agent level, and the resulting hodgepodge of commission “systems” required to administer those different commission plans. McMillan has finished ...

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