Sliding Scale Commission Sample Clauses
A Sliding Scale Commission clause defines a commission structure where the percentage or amount paid to a party varies based on certain thresholds, such as sales volume or revenue generated. For example, the commission rate might increase as sales targets are met or exceeded, incentivizing higher performance. This clause ensures that compensation is aligned with results, motivating parties to achieve better outcomes and providing a fair method for adjusting payments according to performance levels.
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Sliding Scale Commission. A. The Reinsurer shall make to the Company a provisional commission allowance of 37.50% of the Net Premiums Written, ceded hereunder. The Company shall debit the Reinsurer with the provisional commission allowance; such provisional commission shall be adjusted as provided hereafter. On all return premiums the Company shall <PAGE> 15. No. TM666A-R03 return to the Reinsurer the provisional commission allowance of 37.50%. Such commission allowance includes provision for all brokerage and commission, premium taxes of all kinds, all board, bureau and exchange assessments and any other expenses whatsoever except Loss Adjustment Expenses.
B. The adjusted commission allowance which the Reinsurer shall make to the Company shall be in accordance with the following formula and computed and paid on Earned Premiums. All intermediate and final calculations shall be rounded to two decimal places. If the actual ratio of Incurred The adjusted commission 42.50% or less 43.50% Maximum Higher than 42.50% but 43.50% less 60.00% of not exceeding 52.50% the difference between the actual loss ratio and 42.50% Higher than 52.50% but 37.50% less 83.33% of not exceeding 67.50% the difference between the actual loss ratio and 52.50% 67.50% or higher 25.00% Minimum
Sliding Scale Commission. A. The Reinsurer shall make to the Company a provisional commission allowance of 37.50% of the Net Premiums Written, ceded hereunder. The Company shall debit the Reinsurer with the provisional commission allowance; such provisional commission shall be adjusted as provided hereafter. On all return premiums the Company shall <PAGE> 15. No. TM666A-R03 return to the Reinsurer the provisional commission allowance of 37.50%. Such commission allowance includes provision for all brokerage and commission, premium taxes of all kinds, all board, bureau and exchange assessments and any other expenses whatsoever except Loss Adjustment Expenses.
B. The adjusted commission allowance which the Reinsurer shall make to the Company shall be in accordance with the following formula and computed and paid on Earned Premiums. All intermediate and final calculations shall be rounded to two decimal places. If the actual ratio of Incurred The adjusted commission 42.50% or less 43.50% Maximum Higher than 42.50% but 43.50% less 60.00% of not exceeding 52.50% the difference between the actual loss ratio and 42.50% Higher than 52.50% but 37.50% less 83.33% of not exceeding 67.50% the difference between the actual loss ratio and 52.50% 67.50% or higher 25.00% Minimum
Sliding Scale Commission. A. The Reinsurer shall allow the Company a 28.0% provisional commission on all premiums (i.e., premium finance and direct ▇▇▇▇ premiums) ceded to the Reinsurer hereunder. The Company shall allow the Reinsurer return commission on return premiums at the same rate.
B. The adjusted commission rate shall be calculated as follows and be applied to premiums earned for the first and second underwriting years collectively, and independently for each underwriting year thereafter, as follows:
1. If the ratio of losses incurred to premiums earned is 71.0% or greater, the adjusted commission rate for the contract year under consideration shall be 24.0%;
2. If the ratio of losses incurred to premiums earned is less than 71.0%, but not less than 49.0%, the adjusted commission rate for the underwriting year under consideration shall be 24.0%, plus the difference in percentage points between 71.0% and the actual ratio of losses incurred to premiums earned;
3. If the ratio of losses incurred to premiums earned is 49.0% or less, the adjusted commission rate for the underwriting year under consideration shall be 46.0%.
C. If the ratio of losses incurred to premiums earned for any underwriting year is greater than 77.0%, the difference in percentage points between the actual ratio of losses incurred to premiums earned and 77.0% 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 to losses incurred, subject to a maximum deficit carryforward of 23.0% of premiums earned. If the ratio of losses incurred to premiums earned for any underwriting year is less than 49.0%, the difference in percentage points between 49.0% 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 losses incurred.
D. Within 45 days after 12 months following the end of the second underwriting year and each subsequent underwriting year, and every 12 months thereafter until all losses subject to the underwriting year under consideration have been finally settled, the Company shall calculate and report the adjusted commission on premiums earned for the underwriting year, subject to the following:
1. As respects the first calculation, if the adjusted commission on premiums earned is greater than commissions previously allowed by the Reinsurer on premiums earned for t...
Sliding Scale Commission. A. The Reinsurer shall allow the Company a 25.0% provisional commission on all premiums ceded to the Reinsurer hereunder. The Company shall allow the Reinsurer return commission on return premiums at the same rate.
B. The provisional commission allowed the Company shall be adjusted periodically 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 80.0% or greater, the adjusted commission rate for the underwriting year under consideration shall be 15.0%; 07\I6L1001
2. If the ratio of losses incurred to premiums earned is less than 80.0%, but not less than 75.0%, the adjusted commission rate for the underwriting year under consideration shall be 15.0%, plus 60.0% of the difference in percentage points between 80.0% and the actual ratio of losses incurred to premiums earned;
3. If the ratio of losses incurred to premiums earned is less than 75.0%, but not less than 65.0%, the adjusted commission rate for the underwriting year under consideration shall be 18.0%, plus the difference in percentage points between 75.0% and the actual ratio of losses incurred to premiums earned;
4. If the ratio of losses incurred to premiums earned is less than 65.0%, but not less than 55.0%, the adjusted commission rate for the underwriting year under consideration shall be 28.0%, plus 80.0% of the difference in percentage points between 65.0% and the actual ratio of losses incurred to premiums earned;
5. If the ratio of losses incurred to premiums earned is less than 55.0%, but not less than 50.0%, the adjusted commission rate for the underwriting year under consideration shall be 36.0%, plus the difference in percentage points between 55.0% and the actual ratio of losses incurred to premiums earned;
6. If the ratio of losses incurred to premiums earned is 50.0% or less, the adjusted commission rate for the underwriting year under consideration shall be 41.0%.
C. Within 45 days after six months following the end of each underwriting year, the Company shall calculate and report the adjusted commission on premiums earned for the underwriting year. If the adjusted commission on premiums earned is less than commissions previously allowed by the Reinsurer on premiums earned for the underwriting year, the Company shall remit the difference to the Reinsurer with its report. If the adjusted co...