Overriding Commission Law and Legal Definition

Overriding commission is commission that is earned by the field office manager and is based upon the business that is created by the agents in the office. For example, in the insurance industry, it is a commission paid to agents who have exclusive territorial or class-of-business agreements with an insurance company, for all policies written in their territory or for that class of business, even if the business is written by other agents.

Overriding commission is that portion of a commission received and retained by a general agent after paying the other portion to a producing agent whose business is supervised by that general agent. Also known as overwriting commission.