RETENTION
BONUS PROGRAM REVISED 2002
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.
This
program was initiated on 9/30/91 with a minimum written premium requirement of
$20,000. At this time, we are
encouraging our agency force to grow with us and are setting the goal at a
higher level of $35,000. minimum written premium.
Eligibility:
Agent must be under contract with Fulmont.
Agent must have a minimum written
premium of $35,000
Brokers and Director Agents are not
eligible.
Period Covered:
One full year
Effective 10/1 to 9/30
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 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).
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
020506
Bonus Retention Revision #1
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.
05/2002