What limits an agent's commission when selling Medicare supplement insurance?

The correct answer is that the commission paid on the policy limits an agent's commission when selling Medicare supplement insurance.

In the context of Medicare supplement insurance, also known as Medigap, commissions are typically regulated by state laws and are influenced by the specific policies of the insurance company offering the coverage. Insurance companies set the commission rates for their agents, and these rates can vary based on several factors, including the type of policy sold and the performance of the agent.

Medicare supplement policies also have established commission structures which can cap the maximum earnings an agent can receive. Therefore, the amount of commission the agent can earn is directly determined by the provisions in the policy itself regarding compensation. It ensures that brokers and agents remain compliant and do not engage in practices that could exploit consumers or lead to excessive pricing.

While other aspects, like the agent’s licensure or the overall policy value, are important in their own right, they do not directly dictate or limit the commission the agent can earn from the sale of Medicare supplement policies.