Compensation Glossary

Branch Office Distribution System

A common system for selling individual life insurance. Under this system, the soliciting agents who work out of a branch office are under contract to the insurance company, not to the branch manager. The agents receive commissions directly from the insurance company. The branch office manager, supervisors, and clerical personnel in the field office are employees of the insurance company; and these employees are subject to the same types of controls normally exercised by an employer. See also AGENCY SYSTEM and BRANCH MANAGER.