A system for the collection of premiums whereby the insurance company “directly bills” the The entity (individual or otherwise) whose risk of financial loss from an insured peril is protected by the insurance policy. for the premium in lieu of the conventional collection of premiums by the agent or broker. The The company providing the insurance coverage. sends a statement to the agent, usually monthly, recording the premiums collected directly, and credits the agent with the Compensation based upon amount of production, e.g., independent insurance agents are compensated on the basis of a percentage of the premium. The perc... on those items.