COMMISSION ADJUSTMENT Clause Samples
The Commission Adjustment clause defines how and when the amount of commission paid to a party may be modified after the initial agreement. Typically, this clause outlines circumstances such as changes in the underlying transaction value, refunds, cancellations, or errors in calculation that could trigger an adjustment to the commission amount. Its core practical function is to ensure that commission payments accurately reflect the final terms and outcomes of the transaction, thereby preventing disputes and ensuring fairness between the parties involved.
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COMMISSION ADJUSTMENT. On the fifth (5th) anniversary of the Effective Date of this Agreement, upon the written request of either Party, the Parties shall negotiate in good faith an adjustment to the commission to take into account changes in market conditions, operating conditions or costs, including overhead costs, inflation or other factors; provided, however, that in the event the Parties are unable to agree to any such adjustments within thirty (30) days following commencement of such negotiations, no adjustment to the commission will be made.
COMMISSION ADJUSTMENT. A. The provisional commission allowed the Company shall be adjusted in accordance with the provisions set forth herein. The adjusted commission rate shall be calculated as follows and be applied to Net Premiums Earned:
1. if the ratio of Losses Incurred to Net Premiums Earned is 67.50% or greater, the adjusted commission rate shall be 26.50%; Effective: January 1, ▇▇▇▇ ▇▇▇: December 28, 2010 U4VT0004 10 of 36
2. if the ratio of Losses Incurred to Net Premiums Earned is less than 67.50%, but not less than 63.50%, the adjusted commission rate shall be 26.50%, plus the difference in percentage points between 67.50% and the actual ratio of Losses Incurred to Net Premiums Earned;
3. if the ratio of Losses Incurred to Net Premiums Earned is 63.50% or less, the adjusted commission rate shall be 30.50%.
B. Within 30 days after 12 months after the expiration date of this Contract, and annually thereafter until all losses subject hereto have been finally settled, the Company shall calculate and report the adjusted commission on Net Premiums Earned. If the adjusted commission on Net Premiums Earned is less than commissions previously allowed by the Reinsurer on Net Premiums Earned, the Company shall remit the difference to the Reinsurer with its report. If the adjusted commission on Net Premiums Earned is greater than commissions previously allowed by the Reinsurer on Net Premiums Earned, the Reinsurer shall remit the difference to the Company as promptly as possible after receipt and verification of the Company’s report.
COMMISSION ADJUSTMENT. A. The provisional commission allowed the Company shall be adjusted periodically for each underwriting year in accordance with the provisions set forth herein. The adjusted commission rate shall be calculated as follows and be applied to premiums earned for the underwriting year under consideration:
1. If the ratio of losses incurred to premiums earned is 69.0% or greater, the adjusted commission rate for the underwriting year under consideration shall be 23.5%;
2. If the ratio of losses incurred to premiums earned is less than 69.0%, but not less than 62.5%, the adjusted commission rate for the underwriting year under consideration shall be 23.5%, plus the difference in percentage points between 69.0% and the actual ratio of losses incurred to premiums earned;
3. If the ratio of losses incurred to premiums earned is less than 62.5%, but not less than 47.5%, the adjusted commission rate for the underwriting year under consideration shall be 30.0%, plus one-half the difference in percentage points between 62.5% and the actual ratio of losses incurred to premiums earned;
4. If the ratio of losses incurred to premiums earned is 47.5%, but not less than 41.0%, the adjusted commission rate for the underwriting year under consideration shall be 37.5%, 14 plus the difference in percentage points between 47.5% and the actual ratio of losses incurred to premiums earned;
5. If the ratio of losses incurred to premiums earned is 41.0% or less, the adjusted commission rate for the underwriting year under consideration shall be 44.0%.
B. If the ratio of losses incurred to premiums, earned for any underwriting year is greater than 69.0%, the difference in percentage points between the actual ratio of losses incurred to premiums earned and 69.0% shall be, multiplied by premiums earned for the underwriting year and the product shall be carried forward to the next underwriting year as a debit (addition) to losses incurred. If the ratio of losses incurred to premiums earned for any underwriting year is less than 41.0%, the difference in percentage points between 41.0% and the actual ratio of losses incurred to premiums earned shall be multiplied by premiums earned for the underwriting year and the product shall be carried forward to the next underwriting year as a credit to (subtraction from) losses incurred.
C. Within 45 days after the end of each underwriting year the Company shall calculate and report the adjusted commission on premiums earned for the underwriting year. I...
COMMISSION ADJUSTMENT. A. 1. The final ceding commission shall be determined by the loss experience under this Agreement. The Company will calculate an adjusted ceding commission for the Underwriting Period within 14 months following the inception of the Underwriting Period based on premiums earned and losses incurred. The provisional ceding commission will be adjusted between the parties as appropriate. Adjustments for the Underwriting Period continue to be made annually until all losses ascribed to the Underwriting Period have been paid or closed, at which time the ceding commission will become final. For purposes of this calculation, no upward adjustment will be made until 26 months following the inception of the Underwriting Period.
COMMISSION ADJUSTMENT. Any upline distributors affected by the returns of products to Hylife will have to make adjustment by conforming to commission, income from line and bonus account, personal balance, etc, depending on the commission and the bonus paid for the returned products.
COMMISSION ADJUSTMENT. A. The provisional commission allowed the Company shall be adjusted at the end of each Contract Year in accordance with the provisions set forth herein. The adjusted commission rate shall be calculated as follows and be applied to Net Premiums Earned for the Contract Year under consideration:
1. if the ratio of Losses Incurred to Net Premiums Earned is 72.00% or greater, the adjusted commission rate for the Contract Year under consideration shall be 22.00%;
2. if the ratio of Losses Incurred to Net Premiums Earned is less than 72.00%, but not less than 59.33%, the adjusted commission rate for the Contract Year under consideration shall be 22.00%, plus 100.00% of the difference in percentage points between 72.00% and the actual ratio of Losses Incurred to Net Premiums Earned;
3. if the ratio of Losses Incurred to Net Premiums Earned is 59.33% or less, the adjusted commission rate for the Contract Year under consideration shall be 34.67%.
B. Within 30 days after the end of each calendar quarter, beginning with the calendar quarter ending 12 months after the end of each Contract Year, until all losses subject hereto have been finally settled, the Company shall calculate and report the adjusted commission on Net Premiums Earned. Each calculation shall be based on cumulative transactions hereunder from the beginning of the Contract Year under consideration through the date of adjustment. If the adjusted commission on Net Premiums Earned for the Contract Year as of the date of adjustment is less than commissions previously allowed by the Reinsurer on Net Premiums Earned for the same Contract Year, the Company shall remit the difference to the Reinsurer with its report. However, such report and remittance shall be made by the Company to the Reinsurer starting with any quarter prior to 12 months after the end of each Contract Year if the ratio of paid Losses Incurred to Net Premiums Earned for that Contract Year exceeds 64.50%. If, for any calculation more than 24 months after expiration of each Contract Year, the adjusted commission on Net Premiums Earned is greater than commissions previously allowed by the Reinsurer on Net Premiums Earned for the same Contract Year, the Reinsurer shall remit the difference to the Company as promptly as possible after receipt and verification of the Company’s report.
COMMISSION ADJUSTMENT. The provisional commission allowed the Company shall be adjusted in accordance with the provisions set forth herein for each Accounting Period as hereinafter defined. The adjusted commission rate shall be calculated as follows and be applied to Net Premiums Earned for the Accounting Period under consideration: Effective: December 31, 2013 DOC: May 22, 2014 U4VT0008 (Tokio Millenn) 1 of 4 Endorsement No. 2
COMMISSION ADJUSTMENT. A. The provisional commission allowed the Company shall be adjusted in accordance with the provisions set forth herein. The adjusted commission rate shall be calculated as follows and be applied to Net Premiums Earned:
1. If the ratio of Losses Incurred to Net Premiums Earned is 75.50% or greater, the adjusted commission rate shall be 19.00%;
2. If the ratio of Losses Incurred to Net Premiums Earned is less than 75.50%, but not less than 71.50%, the adjusted commission rate shall be 19.00%, plus one-half of the difference in percentage points between 75.50% and the actual ratio of Losses Incurred to Net Premiums Earned;
3. If the ratio of Losses Incurred to Net Premiums Earned is 71.50% or less, the adjusted commission rate shall be 21.00%.
B. If the ratio of Losses Incurred to Net Premiums Earned is greater than 75.50%, the difference in percentage points between the actual ratio of Losses Incurred to Net Premiums Earned and 75.50% shall be multiplied by Net Premiums Earned and the product shall be carried forward to the successor contract to this Contract as a debit to Losses Incurred. If the ratio of Losses Incurred to Net Premiums Earned is less than 71.50%, the difference in percentage points between 71.50% and the actual ratio of Losses Incurred to Net Premiums Earned shall be multiplied by Net Premiums Earned and the product shall be carried forward to the successor contract to this Contract as a credit to Losses Incurred. However, no debit or credit carryforward shall affect results of adjustments beyond the third contract year following the expiration date of this Contract.
C. Within 12 months after the expiration date of this Contract, and annually thereafter until all losses subject hereto have been finally settled, the Company shall calculate and report the adjusted commission on Net Premiums Earned. If the adjusted commission on Net Premiums Earned is less than commissions previously allowed by the Reinsurer on Net Premiums Earned, the Company shall remit the difference to the Reinsurer with its report. If the adjusted commission on Net Premiums Earned is greater than commissions previously allowed by the Reinsurer on Net Premiums Earned, the Reinsurer shall remit the difference to the Company as promptly as possible after receipt and verification of the Company’s report. Effective: April 1, 2011 DOC: May 25, 2011 U1XQ0003 10 of 35
COMMISSION ADJUSTMENT. A. 1. The final ceding commission shall be determined by the loss experience under this Agreement for each Adjustment Period (as defined in Article 10). There shall be provisional adjustments and a final adjustment for each Adjustment Period, all in accordance with the other paragraphs of this Article.
2. Within 60 days following the end of each Underwriting Year within each Adjustment Period, the Company will calculate an adjusted ceding commission for the Adjustment Period then expired based on premiums earned and losses incurred. The ceding commission paid to that date, whether provisional or prior adjustment, shall be adjusted between the parties as appropriate. At the end of each Adjustment Period, adjustments will continue to be made annually until all losses have been paid or closed, at which time the ceding com- mission will become final.
3. Premium earned for the period shall mean all written premium ceded to this Agreement during the period, less cancellations and returns, plus the unearned premium reserve at the beginning of the period and less the unearned premium reserve at the end of the period.
4. Losses incurred for the period shall mean the loss and loss expense paid by the Reinsurer (less salvages and recoveries received) on losses ascribed to the period, plus loss and loss expense reserves outstanding on losses ascribed to the period and plus an amount for incurred but not reported losses (IBNR) as provided by the Company.
B. 1. Should the ratio of losses incurred to premium earned be 70.0% or higher, then the adjusted ceding commission shall be 26.0%.
COMMISSION ADJUSTMENT. It is expressly agreed that the ceding commission allowed the General Agent by the Reinsurer includes provision for premium taxes and any cost for audits of the General Agent as provided in the General Agency Agreement. The Reinsurer shall allow the General Agent the ceding commission as full compensation for all services rendered and in full reimbursement for all expenditures made by the General Agent. The General Agent shall not be required to return, as commission or return commission, monies greater than the total commission paid or otherwise payable to the General Agent.