An ARC participating carrier may issue a recall commission statement to accomplish which of the following?

• A. To issue a credit memo
• B. To collect a commission amount that was incorrectly taken on a previous ticket transaction that was reported and processed
• C. To notify the agency of a policy change
• D. To issue a new ticket

Answer: (B)

Recall commission statements are used to recover money when a commission was paid out on a ticket that was later found to be incorrect. In ARC’s system, if a commission amount was previously collected and reported but should not have been, the carrier can issue a recall to retrieve that amount. This makes the financial records accurate again and settles the overpayment on a prior transaction.

That’s why collecting the incorrectly taken commission on a previously reported and processed ticket is the purpose of a recall commission statement. The other options describe actions that aren’t about recovering an overpaid commission: credit memos adjust balances for credits already issued, policy changes are communicated separately, and issuing a new ticket is a sales action, not a financial recall.