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It is not I that had a different meaning but the industry. You will not find that term used in any insurance agent contract. For one thing renewal commissions are not "passive" income as the business requires ongoing service. Also, unlike an investment in an investment vehicle that pays a "trail" with out any additional deposits, the insurance contract generally requires additional payment in order earn renewals. Insurance agents need to quite using investment terminology to describe their product because in doing so they give ammunition to those that want to regulate insurance the way stocks, bonds, mutual funds, etc. are regulated.
Dude - you over thinking this thing . . . Are you a Mensa member?
I did the initial work and made my initial commission + I'll later earn more each month for the same efforts - I am earning "residual" income . . .