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This Subtopic provides guidance to insurance entities on accounting for and financial reporting of other expenses.
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In a number of life insurance entities, virtually all sales expense is composed of compensation paid to agents. Such compensation relates directly to the amount of business produced by an agent.
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In other entities, considerably less compensation will be paid to agents; however, additional sums will be paid to salaried employees, such as branch managers and employees, or to field representatives, who call on and assist the agents.
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There are also entities that do not sell through agents. Some entities use mail, the internet, and other mass-marketing methods to sell their products.
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