Override in the insurance distribution context refers to an additional layer of compensation paid to agencies, brokerages, or marketing organizations above the base commission paid directly to writing producers. These override amounts reflect the intermediary's role in recruiting, training, supporting, and supervising field agents, as well as handling case design and back-office processing. Overrides are typically expressed as a percentage of premium or target premium, and may vary by product, carrier, and production level. While override structures are largely invisible to clients, regulators and compliance teams care about them because they can influence product placement, conflicts of interest, and overall distribution costs built into pricing.

In real practice, advisors intersect with override structures when they work through brokerage general agencies, independent marketing organizations, or large producer groups. Although the writing advisor may only see their own commission schedule, the agency receives overrides from carriers that fund value-added services such as advanced case support, technology platforms, and training events. Sometimes, agencies share part of the override with top producers as enhanced compensation or bonuses. Advisors must still recommend products based on client needs, suitability, and best interest standards, not on which carrier or product pays the highest override to their organization. Transparency rules may require disclosure of compensation structures in certain contexts, especially for annuities or fiduciary-based planning. By understanding overrides, producers gain insight into the economics of distribution, appreciate the resources agencies provide, and remain alert to potential conflicts that must be managed through strong compliance and client-first practices.