what amount of commission chargebacks from appointed brokers is standard?

The amount of commission chargebacks from appointed brokers can vary depending on the specific contract between the broker and the insurance company. Commission chargebacks occur when an insurance company must recover previously paid commissions due to policy cancellations or changes. In general, chargebacks can range from 10% to 100% of the commission paid, but most chargebacks fall in the range of 20% to 40%. For example, if a broker earned a $1,000 commission on a policy that was later canceled, the insurance company may charge back $200 to $400 of the commission. It's important to note that chargeback policies can differ between insurance companies, so it's essential to read and understand the terms of the contract between the broker and the company. Some insurance companies may have a set chargeback percentage for all policies, while others may have varying percentages based on factors such as the type of policy, the reason for the cancellation, and the length of time the policy was in force. Additionally, some insurance companies may have chargeback limits or caps in place to prevent excessive chargebacks from impacting a broker's earnings. For example, an insurance company may only charge back a maximum of 50% of a broker's total commissions earned in a given period. In summary, the amount of commission chargebacks from appointed brokers can vary widely and is determined by the terms of the contract between the broker and the insurance company. Most chargebacks fall in the range of 20% to 40%, but some companies may have set percentages or chargeback limits in place. It's essential to read and understand the terms of the contract to know what to expect in terms of commission chargebacks.