Tina E.

asked • 18d

accounting 304

Sandhill’s Agency sells an insurance policy offered by Capital Insurance Company for a commission of $92 on January 2, 2017. In addition, Sandhill will receive an additional commission of $10 each year for as long as the policyholder does not cancel the policy. After selling the policy, Sandhill does not have any remaining performance obligations. Based on Sandhill’s significant experience with these types of policies, it estimates that policyholders on average renew the policy for 4.5 years. It has no evidence to suggest that previous policyholder behavior will change

Still have a question? Ask your own and get expert help!