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INTRODUCTION
This Agency Manual has been designed for use as a tool to build a working
Agency-Company relationship. We have provided in-depth information for every agent to use as a Please review the manual and contact the underwriting department if there is an area we have overlooked. Our staff will be happy to assist you with any problems or questions. For ease in referring to Fulmont Mutual Insurance Company, please note hereinafter, it will be referred to as "the Company." Any deviation from our procedures as stated in the agency manual, rating manual or underwriting guidelines could result in suspension of binding authority or termination of the agency license. [Return to Top] In order to best serve your needs, please refer to the following listing of personnel, their office responsibilities and their telephone extension (if available) when telephoning or writing to our Company.
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UNDERWRITING DEPARTMENT
FIELD REPRESENTATIVES
NOTE -Cancellations for Underwriting Reasons: Refer to Underwriter for Type of Policy
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DATA PROCESSING DEPARTMENT
ACCOUNTING DEPARTMENT
BRANCH OFFICE, WESTPORT, NEW YORK
BRANCH OFFICE, CANAJOHARIE, NEW YORK
FM SCION SERVICE CORP. AGENCY
AGENTS' LICENSING REQUIREMENTS
All agents must be licensed by the New York State Insurance Department. We must have a It is the agents' responsibility as disclosed in Circular Letter #20 (1981) of the New York BUSINESS CRITERIA All agents are expected to submit quality, all-lines business. Broker of Record letters will not OPERATING TERRITORY Fulmont Mutual Insurance Company is licensed with the New York State Insurance BINDING AUTHORITY Due to reinsurance restrictions, an agent's binding authority is limited to:
An agent may not exceed binding authority without prior approval from the underwriting
NEW AGENTS GOALS A new agent is expected to have a minimum of $10,000. of written premium with the POLICY TYPES All policy types written and used by the Company are New York State Simplified Language
COMMISSION SCHEDULE
*Substandard Business is defined as a marginal risk, being insured on a Standard Fire Policy only as an accomodation. **Inland Marine coverage must always be attached to a supporting policy. Therefore, commission is paid according to the supporting policy. Example: a Farmowners policy with Inland Marine attached will be paid 18%. *** A Broker is an individual or agency that is not licensed with the company as an agent. For example, when an agency agreement has been terminated, all policies left on the books are treated as a Broker. COMMISSIONS Commissions are paid on a "Cash Basis'." An agent will receive commission on the following month's statement after payment is received by the Company. (Example: Premium received on 10/21/90, commission will be paid on 11/15/90 for the month ending 10/31/90.) Adjustments for return commission on cancelled policies will be made on the following month's commission statement. Commissions are paid to an agent when the actual installment (down payment, first or second installment) is paid. Commission statements and checks, if applicable, are issued on the 15th of each month. The agent is responsible for reviewing the commission statement and contacting our office with any corrections within 30 days of receipt of the statement. The Company will not be responsible for any errors not reported after 60 days of the statement being issued. If you have return commission due the Company and there is no commission to be paid, your commission statement will be mailed to you and the return commission must be paid within 15 days of receipt. DISCRIMINATION CLAUSE/ANTI-REDLINING CLAUSE Fulmont Mutual Insurance Company does not discriminate on the basis of race, color, age, creed, sex, or location. Fulmont Mutual Insurance Company does not redline on the basis of location. REGULATION #90 strictly prohibits insurance companies from refusing to write insurance coverage in certain less favorable areas. TERMINATION OF AGENCY Occasionally, an Agency‑Company relationship must end. If the company requests termination of an agency agreement, procedures as listed in Section #3426 of the New York State Insurance Law must be followed. If an agent desires termination of his contract, we will follow the same procedures under Section #3426 for termination of an agent. We will issue cancellation notices 45-60 days in advance of the policy anniversary/renewal date. SALE OF AN AGENCY If you are planning to sell your agency, we would appreciate notification prior to the sale so we could contact the new principal to determine whether the business would remain with the Company and to obtain a new agreement, licensing information, etc. CONVERTING/ROLLING OVER A BOOK OF BUSINESS We are most interested in rolling over a book of business! Please contact the underwriting department prior to placement of the business for a smooth transition. FIELD
REPRESENTATIVE The Company Field Representative will assist an agency with any questions or problems regarding the operation of the Company. The Field Representative will contact your agency occasionally or an agent may contact the Field Representative for an appointment AGENTS' ACTIVITY REPORTS The Agents' Activity reports are processed on a monthly basis. The report contains year-to-date Written and Earned Premiums, Incurred and Paid Losses and Loss Ratios. If you have any questions, please contact your field representative or the Underwriting Manager. PHOTO REIMBURSEMENT All agents will be reimbursed $5.00 per location for the photos required with an application. Photo reimbursement will be paid on a quarterly basis, and will be included with your commission payment. Photo reimbursement will not be given for photocopies of a photo or for a photo of the giant evergreen tree in front of the risk. 1099 MISCELLANEOUS INCOME The Miscellaneous Income form, 1099, is sent to all agents regardless of the amount of income received from the Company. The miscellaneous income form is based on commission checks paid during the calendar year, contingent commission bonus checks and the value of any prizes awarded. WEBSITE (INTERNET) The Company now maintains a website on the Internet. http://www.fulmontmutual.com is our address. We have incorporated a great deal of information at this website that we hope will be of interest and value to you and our policyholders. Parts of this site are designed for the general public, as it includes information about our Company, our products and our history. Other parts of the site are designed specifically for policyholders and agents. If you choose to explore these parts of the site, you will need to use the password and number that was assigned to you. We hope you enjoy your visit with us at our website, and we invite you to return for updated information on a regular basis. FACSIMILE MACHINE (FAX) The Company maintains a facsimile machine at the Home Office and at our branch office in Westport, New York. The Company will accept all correspondence from agents from the facsimile machine, but the original correspondence, if it is an application, endorsement, claim notice or legal document must be mailed directly to the Company. The FAX number for our Johnstown office is1-518-762-3171 for our Westport office 1-518-962-2061 and for our Canajoharie Office is 1-518-673-3160. |
