An agreement between an insurer and intermediary (or between an insurer
and reinsurer or a retrocessionaire) based on the percent of written
(or ceded) premium that will be guaranteed income to the intermediary/insurer/reinsurer.
There is usually a credit offset for other commissions (regular and contingent
commissions) paid. This introduces a question of how fees paid by an insured
to an intermediary are handled and should be disclosed along with other income,
such as contingent commissions.