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SUPER AGENTS’
CONTINGENT COMMISSION PROGRAM:
REVISIONS:
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Normally, the underwriting
profit of the Company will be the basis for determining whether a
Super Agents’ Contingent Commission will be paid. However, at the
discretion of Management, a Contingent Commission may not be awarded
in the absence of an underwriting profit.
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If a Contingent
Commission is paid, the calculation will be based on the individual
agent’s “pure profit”. “Pure profit” will equal Earned Premium minus
Management expenses, incurred losses, LAE and unallocated expenses.
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Management expenses
will include the subject agent’s actual commission. Please note that
those agents who receive an average higher commission may experience
slightly higher management expense ratios. A higher commission is
normally the result of net retention bonus, Contingent Commission,
High Tech, extra commission for a rollover, etc.
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At the discretion of
management, agents who are eligible for a Super Agents’ Contingent
Commission, may receive up to 20% of their pure profit.
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The stop loss of
$100,000. per loss on a yearly basis will remain in effect. However,
if an open loss is increased in succeeding years there may be up to an
additional $100,000. stop loss for each of the succeeding years the
loss was increased.
PREMIUM BASE:
The premium base for the Super Agents’ Contingent Commission Program
will be Earned Premium of $200,000.
NUMBER OF YEARS IN SUPER AGENTS’ CONTINGENT COMMISSION CALCULATION:
One year, being January 1
through December 31, will be used in the calculation.
BONUS PROGRAM:
If the Earned Premium for
the current year is at least 10% more than the previous year, 1%
additional commission times Earned Premium may be paid. Please note
that rollover business will not be included in the bonus program
calculation. The bonus program will apply only to agents eligible and
qualifying for the Contingent Commission Program.
CONTINGENT COMMISSION REDUCTION: If the Earned Premium for the
current year is more than 5% LESS THAN the previous year, 1%
commission times Earned Premium may be subtracted from the Contingent
Commission check. This applies only to agents qualifying for the
Contingent Commission Program.
revised 03/2005
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