FULMONT MUTUAL INSURANCE COMPANY
FROM: Marlene A Benton, President
DATE: July 10, 2012
RE: 2012 New Business Bonus Program
We are pleased to announce your results of the 2012 “New Business Bonus Program” based on your agency’s results: To qualify for this you must have:
§ 2011 loss ratio of less than 52%
§ Total 2011 minimum earned premium of $20,000. OR *new agent in 2011 a minimum earned current premium of 15,000.
§ Minimum gross new business in 2011 of $7.500. OR if minimum is less than $7,500. - then 12 new policies.
§ Minimum Earned Premium of at least $20,000.
§ Minimum profit of at least $5000.
§ Minimum Policy retention of 70% based on retention report previous year
§ If Loss Ratio is .00 (zero) and gross new business in 2011 is less than $15,000. and less then 12 new policies – then bonus calculation for agent will be 5%
Bonus caLculation on New business Earned premium at 2011:
Loss ratio 00 to 5% - bonus is 15% of NBEP
Loss ratio 05.01 to 15% - bonus is 10% of NBEP.
Loss ratio 15.01 to 35% - bonus is 6% of NBEP
Loss ratio 35.01 to 52% bonus is 4% of NBEP
NBEP = New Business Earned Premium
TEP = Total earned premium
ATP = Agency total profit
New Agents in 2011 bonus will be calculated at one half (1/2) of subject percentage.
Your calculation sheet is attached. If you are eligible for a bonus, you will receive either a check or electronic payment. If you have any questions, please let us know.