Introduction:

The Bonus Retention program is designed to be advantageous to both the Agent and the Company.  Agents will be paid an additional commission for retaining their policies with the Company from year to year. For the Agent, it is an incentive to obtain additional commission. For the Company, there are three objectives: 

                 1.            To enhance the marketing of our Company;

                 2.            To maintain and/or increase written premium;

                 3.            To increase profitability.  

 Eligibility: 

• Agent must be under contract with Fulmont.

• Agent must have a minimum written premium of $35,000

• Agent must write and retain 12 new policies within the program year of 10/31 to 9/30 .

• Brokers and Director Agents are not eligible.  

  Period Covered:

• One full year effective 10/1 to 9/30                    

12 New Policies:

The following types of policies acceptable for eligibility in the "12 new Policies"  program are SMP, BOP, Landlords Package, Mobilehomeowners & Dwelling Fire.

Basis for Determining Retention: 

By individual policy and written premium; for the purpose of this  program only,  written premium is defined as the annualized premium. A detailed report listing every individual policy and written premium recorded on  the books as of 9/30 will  be prepared for each eligible agent. The report  will  include the total number of policies and the total written premium.  

• A similar report will be prepared each subsequent year. 

• We will produce a listing of all policies written during the period of 10/31 to  9/30 with the exception of new business written during that period.

• Only those individual policies (or renewal thereof) that have been retained from one year to the next will  be considered eligible in the calculation for  additional commission.

• The total written premium on the policies that are retained from one year to the next will be divided into the written premium from the previous 9/30 year to  obtain a percentage of retention.

• The agent is eligible for additional commission under this program if the premium retained at current year (9/30) equals at least 90% of the premium at previous year (9/30). 

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 Additional Commission: 

The additional commission percentage will be calculated by applying the applicable percentage and multiplying it by the written premium of the retained  business. Please note this additional commission does not apply to the agent's  total written premium, only the written premium of the retained                 business.

 Commission Percentages Are:

•  90% retention - 1% additional commission

•  93% retention - 2% additional commission

•  96% retention - 3% additional commission

The additional commission will be paid within 45 days from September 30. It will normally be paid by automated deposit to the agent’s designated account. It will be a separate entry from the regular monthly commission automated deposit.

Data Processing Reports:

A detailed Listing of Individual Policies and Subject Premium as of September 30 will be generated and available for your review on your web page.

A detailed Listing of Policies Retained, including subject written premium retained, will be generated and available for your review on your web page.

Your Retention Bonus Commission Calculation will be generated and available or your review on your web page

Revised 03/2005

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