• What is take rate?

• How take rate is effected by cancelled policies

• How & when is take rate returned for mid-term cancellations

• FAQs

Agency take rate is an additional percentage added to the base APR on your insured's finance agreement that is paid to your agency. This allows your agency to participate in the upside of the finance agreement. By adding a take rate, your Agency will earn additional revenue when an insured chooses to finance their programs.

Take rate is calculated and paid out to your agency based on the assumption that the full loan cycle will play out as intended.

For example, if your agency has earned a 3% take rate on a policy effective from January 21, 2024 - January 21, 2025 (1 year term), the APR (including your agency's take rate) is calculated based on a 1 year Premium Finance Agreement (PFA). This means that your agency receives the full interest earned by take rates at the start of the loan.

So what happens if the loan is cancelled mid-term, and the full interest is not earned?

When your insured signs the PFA and makes their downpayment, take rate is calculated and paid out to your agency based on the assumption that the full loan cycle will play out as intended. So what happens if the loan is cancelled mid-term, and the full interest is not earned?

The unearned take rate will be the fraction of the take rate payout for the loan based on the number of unpaid payments.

For example, if there are 10 payments on the loan and the customer paid 3 of them, we will collect back 7/10 (70%) of the take rate payout.

The policy's actual cancellation date does not affect the unearned take rate, as the loan and the policy exist separately from the other.

Ascend will collect the unearned take rate 60 days after the program was canceled if it has not been reinstated.

Ascend will auto-deduct unearned take rates from your agency's next monthly take rate payout. Unearned take rate will not be deducted from the commission payout.

If the following month's take rate payout is lower in amount than what is owed in unearned take rate, your agency will need to manually pay that outstanding balance using a payment link in a similar process as unearned commission or other funds being sent from your agency to Ascend.

The unearned take rate will be the fraction of the take rate payout for the loan based on the number of unpaid payments.

For example, if there are 10 payments on the loan and the customer paid 3 of them, we will collect back 7/10 (70%) of the take rate payout.

The policy's actual cancellation date does not affect the unearned take rate, as the loan and the policy exist separately from the other.

No, on those cases, your agency will keep the full take rate on the program.

Unearned take rate will not be deducted from the commission payout. Ascend will auto-deduct unearned take rates from your agency's next monthly take rate payout.

If the following month's take rate payout is lower in amount than what is owed in unearned take rate, your agency will need to manually pay that outstanding balance using a payment link in a similar process as unearned commission or other funds being sent from your agency to Ascend.

Outstanding unearned take rate will be viewable on the Accounting page's Outstanding balance tab here. Set the Reason filter to Unearned take rate to view all your agency's outstanding balance of this kind:

If the program is reinstated before 60 days after cancelation, nothing should happen, we will not have collected any unearned take rates.

If the program was reinstated on or after 60 days after cancelation and unearned take rate has been returned to Ascend by your agency, our team will pay back out the take rate in the following month's take rate payout.

Yes, please reach out to our Support team at support@useascend.com to adjust the auto-deduction settings.

Need more help? Contact us at support@useascend.com for more help.