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Commissions

Commission Designation Policy

When an agent contracts with Blue Cross Blue Shield and Blue Care Network of Michigan, the agent completes a Commission Payment Designation Form. To change the designation, the following policy applies:


Designation change Policy
Agent to Agency When an agent changes commission designation from an individual payable agent to an agency, current commissions transfer to that agency at the requested effective date.
Agency to Agent When an agent changes commission designation from an agency to an individual agent, commissions will remain with the agency unless the agency notifies us to release commissions to the agent. If the agency does not release commissions, the agent must obtain Agent of Record letters. At that time, commissions will be effective based on Agent of Record policy.
Agency to Agency When changing commission designation from an agency to another agency, the Agency to Agent policy applies.

Requests must be made in writing, signed by an agent and include:

  • The new designation name
  • Tax identification number or social security number
  • Effective date of change
  • List of any groups that should be included or excluded
  • A copy of the agency license (if assigned commissions are payable to an agency). This license must be with the State of Michigan and include accident and health qualifications

If you have individuals and corporations who wish to operate under an assumed name, they must register such names with the appropriate jurisdictional authorities (generally the county clerk) in their county. This is required because an assumed name is not the official name of the licensee as maintained in the Office of Financial and Insurance Services licensee records.


In addition, Michigan licensees operating under an assumed name must complete a DBA Registration form (FIS-0201) which is available in the Forms section of the OFIS Web site.


This form must be mailed to OFIS at the address listed below and must include a photocopy of the certification of filing of assumed name. It must be received by OFIS within 30 days of receiving authority to use the assumed name.


OFIS Licensing
P.O. Box 30220
Lansing, MI 48909-7720

When changing the designation name to a DBA, BCBSM requires:

  • A copy of the DBA papers that were filed with the county
  • A copy of the state of Michigan's verification of the agent's disclosure to OFIS
  • The tax identification number or social security number

If you have questions, contact your managing agent or forward the documentation to Agent Administration.

Non-Standard Commission Policies

When an agent and client agree on a commission schedule other than the BCBSM standard schedule, the following policies apply:


100+ size groups* Policy
New Blues Customer For New Business groups, the difference between the standard commission (5% graded) and the requested commission will be included in the group's premium rates.
Existing Blues Customer For existing groups that were not originally sold by an agent, the total requested commission will be included in the group's premium rates.

* This category consists of Blue Cross Blue Shield of Michigan ASC self-funded, experience rated or Blue Care Network of Michigan groups with 100 or more enrolled contracts.


To request a non-standard commission, you must submit an original Agent of Record letter on company letterhead stating that the group is aware that the request for non-standard commission will impact their premium rate. The letter must be signed by two officers of the group. Send the letter to your designated agent coordinator.


Sample Agent of Record Letter - New Blues Customer


Sample Agent of Record Letter - Existing Blues Customer


Note: The additional fee will be reported in the proposal, future renewals and ERISA Schedule 5500's.