NOVUS cash flow

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See the NOVUS Walkthrough Guide for further information.


The following three examples show how cash is managed in NOVUS through the TRANPT program, both in theory and in practice. For further detailed information about markets and agents see the MART program.

Imagine the following scenario: Charlie Brown (“the Assured”) wants to insure his car and calls YOU (“the Intermediary” using the NOVUS system) to place the insurance with four named carriers. The following three examples show how NOVUS deals with the cash transaction and how the money flows into the cash ‘pot’ at the Intermediary using NOVUS (YOU).

Example 1

NOVUS cash flow example 1.PNG


Example 1 shows how the cash transaction and commission works in NOVUS. There are no instalments, taxes, or fees in this example, but the same principle works for ALL transactions through TRANPT. In this case four named carriers are sharing the cost of the insured amount.

Charlie Brown (“the Assured” who is also YOUR “Client”) is charged $100 gross premium by YOU (“the Intermediary”) and YOU have allowed your Client a 5% commission on this premium. The Market screen is set up (per section) with Charlie Brown (“the Assured” who is also YOUR “Client”) with the ‘*’ suffix enjoying a 5% "Comm out".

There are, in this example, four carriers (insurers) with a "." suffix: Sally Insurers (“Carrier 1”), Franklin Insurers (“Carrier 2”), Peppermint Patty Insurers (“Carrier 3”) and Pigpen Insurers (“Carrier 4”). The proportion or signed lines they have each agreed to for this risk are:

  • Carrier 1 - Sally Insurers has agreed to bear 50% of the risk i.e. $50 premium being 50% of $100
  • Carrier 2 – Franklin Insurers has agreed to bear 25% of the risk i.e. $25 premium being 25% of $100
  • Carrier 3 – Peppermint Patty Insurers has agreed to bear 15% of the risk i.e. $15 premium being 15% of $100
  • Carrier 4 – Pigpen Insurers has agreed to bear 10% of the risk i.e. $10 premium being 10% of $100

Each of the carriers has agreed to pay 20% commission to YOU (“the Intermediary”) known as "Comm In" in the TRANPT program.


YOU charge Charlie Brown $100, therefore $100 flows through to the four carriers unencumbered. The agreed commission, 20% from each carrier’s share is "returned" to the pot at the Intermediary (YOU), meaning:

  • Carrier 1 - Sally Insurers pays 20% of its share ($50) of the premium for the risk = $10
  • Carrier 2 – Franklin Insurers pays 20% of its share ($25) of the premium for the risk = $5
  • Carrier 3 – Peppermint Patty Insurers pays 20% of its share ($15) of the premium for the risk = $3
  • Carrier 4 – Pigpen Insurers pays 20% of its share ($10) of the premium for the risk = $2


This delivers a total of $20 into the ‘’Comm In’’ pot at the Intermediary (YOU). This means that YOU now have enough funds to pay any ‘’Comm Out’’ to Charlie Brown (“the Assured” who is also YOUR “Client”).

Charlie Brown (“the Assured” who is also YOUR “Client”) can be paid 5% commission ($5) leaving YOU (“the Intermediary”) with the remaining $15, known as ‘’XBK’’

In reality, Charlie Brown (“the Assured” who is also YOUR “Client”) pays the discounted premium amount of $95, and the carriers are paid a total of $80 between them split thus:

  • Carrier 1 - Sally Insurers is paid $40 instead of $50
  • Carrier 2 – Franklin Insurers is paid $20 instead of $25
  • Carrier 3 – Peppermint Patty Insurers is paid $12 instead of $15
  • Carrier 4 – Pigpen Insurers is paid $8 instead of $10

All transactions net to zero, therefore $100 - $5 commission from Charlie Brown (“the Assured” who is also YOUR “Client”) - $15 (to YOU (“the Intermediary”) - $80 to the four carriers = $0.


Example 2

NOVUS cash flow example 2.PNG


In this example, there is an extra layer of complexity, Here Charlie Brown (“the Assured”) is a different party to Schulz Insurance Brokers (the Agent who is YOUR “Client”), but here, as Charlie Brown (“the Assured”) takes no discount or deduction, his interests are represented by Schulz Insurance Brokers (the Agent who is YOUR “Client”).

In example 2, the $100 gross premium, is paid by Charlie Brown (“the Assured”). Schulz Insurance Brokers (the Agent who is YOUR “Client”), potentially receives the $5 ‘’Comm Out’’ from YOU (“the Intermediary”) - his 5% commission for introducing the business.

This example also introduces Linus Agents (“the Silent Agent or third party administrator (TPA)”). This partner is added to the market in NOVUS using a "-" (dash) suffix. This partner shares the XBK (brokerage) amount (the pot) with YOU (“the Intermediary”).

In this example Schulz Insurance Brokers (the Agent who is YOUR “Client”) receives 5% and Linus Agents (“the Silent Agent or third party administrator (TPA)”) receives 2%.

Schulz Insurance Brokers (the Agent who is YOUR “Client”) charge Charlie Brown (“the Assured”) $100, this is paid and flows through to the carriers unencumbered. The 20% commission from each share is "returned" to the pot:

  • Carrier 1 - Sally Insurers pays 20% of its share ($50) of the premium for the risk = $10
  • Carrier 2 – Franklin Insurers pays 20% of its share ($25) of the premium for the risk = $5
  • Carrier 3 – Peppermint Patty Insurers pays 20% of its share ($15) of the premium for the risk = $3
  • Carrier 4 – Pigpen Insurers pays 20% of its share ($10) of the premium for the risk = $2

As before, there is a total of $20 is in the ‘’Comm In’’ pot at the Intermediary (YOU), This means that YOU now have enough funds to pay any ‘’Comm Out’’ to Schulz Insurance Brokers (the Agent who is YOUR “Client”), an any silent agent commission to Linus Agents (“the Silent Agent or third party administrator (TPA)”) .

Schulz Insurance Brokers (the Agent who is YOUR “Client”) receives the 5% commission ($5), and Linus Agents (“the Silent Agent or third party administrator (TPA)”) receives $2. This leaves YOU (“the Intermediary”) with the remining pot of $13 (XBK).

In reality, Schulz Insurance Brokers (the Agent who is YOUR “Client”) pays the discounted insurance amount of $95, and the carriers are paid a total of $80 between them split:

  • Carrier 1 - Sally Insurers is paid $40 instead of $50
  • Carrier 2 – Franklin Insurers is paid $20 instead of $25
  • Carrier 3 – Peppermint Patty Insurers is paid $12 instead of $15
  • Carrier 4 – Pigpen Insurers is paid $8 instead of $10

All transactions net to zero, therefore $100 - $5 commission (from Schulz Insurance Brokers (the Agent who is YOUR “Client”)) - $15 (to YOU (“the Intermediary”) - $80 to the four carriers = $0


Example 3

NOVUS cash flow example 3.PNG


In this example a tax of $12 is collected from Charlie Brown (“the Assured”) which is passed through to (the carriers) and a fee of $10 that is levied on Schulz Insurance Brokers (the Agent who is YOUR “Client”) and collected by the YOU (“the Intermediary”). The $12 tax flows through to the carriers in proportions according to percentage of risk borne by each carrier:

  • Carrier 1 - Sally Insurers receives $50 premium and $6 tax
  • Carrier 2 – Franklin Insurers receives $25 premium and $3 tax
  • Carrier 3 – Peppermint Patty Insurers receives $15 premium and $1.80 tax
  • Carrier 4 – Pigpen Insurers receives $10 premium and $1.20 tax


The fee is collected and remains with YOU (“the Intermediary”). The NOVUS FEES program will indicate that this fee is debited to Schulz Insurance Brokers (the Agent who is YOUR “Client”) and credited to a "pot" or revenue account that has previously been created in NOVUS. This created pot account could be called ‘XBF’ for fees. This complements the naming convention for brokerage (or ‘commission in’ less ‘commission out’) which is generally known as ‘XBK’.

Schulz Insurance Brokers (the Agent who is YOUR “Client”) charge Charlie Brown (“the Assured”) $100 and the $12 tax; this is paid and flows through to the carriers unencumbered. The 20% commission from each share is "returned" to the pot:

  • Carrier 1 - Sally Insurers pays 20% of its share ($50) of the premium for the risk = $10
  • Carrier 2 – Franklin Insurers pays 20% of its share ($25) of the premium for the risk = $5
  • Carrier 3 – Peppermint Patty Insurers pays 20% of its share ($15) of the premium for the risk = $3
  • Carrier 4 – Pigpen Insurers pays 20% of its share ($10) of the premium for the risk = $2

In reality, Schulz Insurance Brokers (the Agent who is YOUR “Client”) pays the discounted insurance amount of $95 premium, and £12 in tax (assuming the tax is based on Gross Premium of $100). Schulz Insurance Brokers (the Agent who is YOUR “Client”) also pays $10 in fees making the total paid = $117 instead of the full amount of $122.

The four carriers are paid a total of $80 premium and $12 tax between them split thus:

  • Carrier 1 - Sally Insurers is paid $40 instead of $50, and $6 tax
  • Carrier 2 – Franklin Insurers is paid $20 instead of $25, and $3 tax
  • Carrier 3 – Peppermint Patty Insurers is paid $12 instead of $15, and $1.80 tax
  • Carrier 4 – Pigpen Insurers is paid $8 instead of $10, and $1.20 tax

All transactions net to zero, therefore $100 premium - $5 commission + $12 tax + $10 fee (from Schulz Insurance Brokers (the Agent who is YOUR “Client”) - $15 (to YOU (“the Intermediary”) - $80 (to the four carriers) -$12 tax - $10 fee = $0.

XBK (brokerage) = $15

XBF (fees) = $10

Additional considerations

If one of the carriers is set up in the PARTNER program with a N/A tax flag, this tax will only be charged by carriers that have tax applied. For example, if carrier 3 is flagged N/A tax for this tax then the client would only pay $10.20 in Tax ($6+$3+$1.10) instead of $12.


Version History

v 5.1.0 - updated to latest version