GENERAL
GA\ ACCIDENT
INSURANCE
Agency
Agreement
General Accident Insurance Company of America
The Camden Fire Insurance Association
Potomac Insurance Company of Illinois
Pennsylvania General Insurance Company
PG Insurance Company of New York
GA Insurance Company of New York
General Assurance Company
AGENCY AGREEMENT
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|X| General Accident Insurance |X| The Camden Fire |X| Pennsylvania General |X|Potomac Insurance
Company of America Insurance Association Insurance Company Company of Illinois
|_| GA Insurance |_| General |_| PG Insurance
Company of New York Assurance Company Company of New York
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Each company designated above, as now or hereafter constituted, its successors
and assigns, is a party to this Agreement and is severally, but not jointly
referred to as "Company", and has its agency administration office in
Philadelphia, Pennsylvania.
Preferred Employers Group, Inc.
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NAME
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ADDRESS
is a party to this Agreement and is hereafter referred to as "Agent". It is
agreed between Company and Agent that:
1. Authority of Agent
Agent is an independent contractor, and not an employee of Company, for all
purposes, including federal tax, and Agent shall have exclusive control over the
conduct of Agent's business and the selection of companies Agent shall
represent, subject to requirements imposed by law, the terms of this Agreement
and schedules, addenda, or attachments hereto, and the underwriting rules and
regulations of Company.
Company grants Agent the following authority:
a. To operate as an agent for Company in the jurisdictions where Agent is
properly licensed with respect to the classes of risks specified in
paragraph l.b. below. Agent shall not, however, have the exclusive right to
act on Company's behalf in such jurisdictions.
b. To solicit, receive, accept, bind, issue or endorse insurance contracts to
the extent authorized by the Statement of Binding Authority attached to
this Agreement, covering classes of risks for which commission is specified
in commission schedules or addenda attached hereto, and as outlined in
Company underwriting guides or any other document. The Statement of Binding
Authority may be changed at any time at the sole discretion of the Company
upon written notice to Agent. Agent shall transmit copies of all evidence
of insurance and endorsements issued or shall otherwise notify Company of
all liability accepted not later than the third business day following
inception of coverage.
c. To collect and account for premium in accordance with Company procedures on
business written by Agent. Agent shall act in a fiduciary capacity with
respect to all premiums collected.
d. To request cancellation or nonrenewal of any policy placed by Agent with
Company.
1. Upon Agent's request, Company shall give advance written notice of
cancellation or nonrenewal to the policyholder or obligor.
2. Nothing in this Agreement shall interfere with Company's right to
cancel or nonrenew any insurance policy issued by or through Agent.
3. The rights and obligations contained in this paragraph d. with respect
to cancellation and nonrenewal of insurance policies are subject to
requirements imposed by law and must be in compliance with any
applicable provisions contained within the insurance contracts.
II. Premium Accounting
Unless otherwise noted, the following provisions are applicable to all business
placed by Agent with Company except business written under Company's direct
billing system.
a. Agent shall be responsible for all earned premium, whether original,
renewal, installment or other, on business written by Agent and placed with
Company and Company shall not have responsibility for premium advanced by
Agent.
b. Whenever a policy or binder is issued, premium shall be deemed to have been
earned unless such policy or binder is returned within thirty (30) days
after the effective date or date of issue, whichever is later, with
evidence satisfactory to Company that the issuance of such policy or binder
did not result in contractual or other liability on the part of Company.
c. Premium which has been determined by audits, retrospective rating
adjustments and interim reports shall be fully earned. Agent's
responsibility for such premium shall be waived if Agent furnishes written
notice of collection difficulties to Company within thirty (30) days of
date Agent receives the billing notice. Otherwise, Agent accepts full
responsibility for payment and must forward to Company such premium when
due. No commission shall be allowed on premium collected directly by
Company under this provision.
d. Itemized statements of money due Company or due Agent shall be prepared
monthly by Company unless both parties agree that Agent should prepare said
statements. Any such statement prepared by Agent shall be received by
Company within fifteen (15) days following the end of the month for which
the statement was prepared.
e. The balance shown in the statement due Company or due Agent shall be
payable not later than forty-five (45) days after the end of the account
month for which such statement was prepared.
f. If Agent is delinquent in paying any premium due Company, any and all
monies payable to Agent, including profit sharing contingencies and direct
▇▇▇▇ commission, may be applied against such outstanding premium.
g. Omission of any item from a monthly statement or disagreement over the
accuracy of any item that appears on the statement shall not relieve either
party of the responsibility to account for and pay all amounts due the
other, nor shall it prejudice the right of either party to collect all such
amounts due from the other.
h. All financial and accounting records of Agent pertaining to business
written through Company shall be subject to inspection or audit by Company
representatives at all reasonable times.
III. Direct Billed Policies
On policies for which Company will ▇▇▇▇ insureds directly, the following
provisions apply:
a. Agent shall submit all applications to Company and shall collect and remit
to Company with each application any required deposit premium in gross,
without deducting any commission which may be due Agent by Company under
the terms of this Agreement.
b. Following issuance of the initial policy and collection of the initial
premium, Company shall assume full responsibility for billing and
collecting all premium, including any endorsement premium.
c. Company shall pay commissions within thirty (30) days after the end of the
month in which it receives and records premium, subject to any setoff to
which it is entitled.
d. Company shall clearly identify Agent by name on all policies, endorsements,
premium notices, renewal certificates, and cancellation and nonrenewal
notices to policyholders.
IV. Commissions
a. As full compensation for services, Company shall pay Agent commissions in
accordance with the most recent commission schedule made part of this
Agreement ("Schedule") on premium reported and paid to Company on business
written by Agent. Agent agrees to refund unearned commission, whenever
premiums are refunded by Company, at the same rate at which such commission
was originally paid or retained.
b. Any commission rate set forth in the Schedule, shall not be changed by
Company except that:
1. Agent and Company may agree in writing to amend the commission rate
for any and all lines of business specified in the Schedule.
2. Company may change any commission rate upon not less than ninety (90)
days written notice to Agent. No change in any rate of commission may
be made until such rate of commission has been in effect for a period
of twelve (12) months or more or unless the change is a result of
governmental authority having effectively amended the provision for
commission in the rate structure.
3. If this Agreement is terminated under Section IX.a.1, 2 or 3,
commission payments shall cease on the date of termination. If this
Agreement is terminated under Section IX.a.4., commission payments
shall be paid in accordance with the terms of the agreement between
Company and Agent. If this Agreement is terminated under Section
IX.a.5., commissions shall be paid in accordance with subparagraph
(vi) of Section IX.a.5.
4. Nothing in this Agreement, or in the Schedule, shall be construed to
prohibit Agent and Company from negotiating special rates of
commission applicable to individual risks or policies. Any agreement
regarding such special rates must be in writing and signed by Agent
and an authorized representative of Company.
V. Recovery Credits
Company shall include subrogation and salvage recoveries in the preparation of
statistical data pertaining to Agent's business with Company.
VI. Amendments to Agreement
This Agreement may be amended at any time by written agreement of Agent and
Company. This section does not apply to amendments of the Statement of Binding
Authority or Schedule, which may be revised by Company in accordance with
sections l.b. and IV.b.2
VII. Indemnification
a. Company shall indemnify and hold Agent harmless from and against all
sums, including costs and expenses of suit defense and settlement, net
of any insurance proceeds or other realized recoveries received, which
Agent shall become legally obligated to pay by reason of liability
imposed on Agent by law for damages sustained by policyholders of
Company, caused solely and directly by error or omission of Company in
the preparation and handling of policies, or, in the instance of
direct billed business, by Company's failure to send to any
policyholder, before due date, a notice of premium due.
b. Company agrees to indemnify and hold Agent harmless against any civil
claim or liability for damages and expenses, including the costs of
defending suit, net of any insurance proceeds or other realized
recoveries received, which Agent may be obligated to pay as a direct
result of Company's failure to comply with the requirements of any law
pertaining to Company's conduct of the insurance business, except when
such failure is the result of the negligence or willful or intentional
act or omission of Agent.
c. Agent shall promptly notify Company upon receipt of any claim or suit
which may be referred to Company under paragraphs a. or b. above.
d. With regard to any claim to which paragraphs a. or b. of this Section
Vll applies, Agent shall not (i) make any hold harmless agreement or
contract any expense nor voluntarily assume liability in any situation
nor (ii) make or contract any settlement of a claim against Agent,
except at Agent's own cost and responsibility, without the written
authorization of Company. Agent shall at all times fully cooperate
with Company in the defense of any claim hereunder, shall assist in
the preparation for trial and shall, if requested, attend the trial of
any such claim.
VIII. Suspension
If Agent does not make timely accounting for or payment of any sums due Company,
Company reserves the right, upon written notice to Agent, to suspend Agent's
authority to bind coverage, write any new or renewal business, or change any
policy during the period of the suspension. Agent shall not be suspended because
of routine differences in the accounting records of Agent and Company unless
such differences involve the willful withholding of premium collected by Agent.
X. Termination
a. This Agreement, and any Schedule, addendum or attachment hereto, shall
be terminated:
1. By Company, immediately and without notice to Agent, if any
public authority cancels or declines to renew Agent's license or
certificate of authority;
2. By Company, immediately and without notice to Agent, in the event
of Agent's fraud, insolvency, gross and willful misconduct,
abandonment, or failure to pay over to Company monies due after
receipt of written demand therefor;
3. By Company, immediately and without notice to Agent, on the
effective date of sale or transfer of Agent's business; Agent's
merger, consolidation, or reformation; or termination of any
partnership, unless Company has first agreed in writing to the
assignment of this Agreement;
4. By mutual written agreement of Company and Agent, and in
accordance with the terms and conditions to which they have
agreed; or
5. By either party for any reason, upon not less than ninety (90)
days written notice to the other, in which event the following
conditions shall apply:
(i) Agent's authority to issue claim drafts and to solicit,
bind, execute, or issue contracts of insurance for new
business, certificates or renewals shall cease as of the
time notice of termination of this Agreement is given.
(ii) Unexpired policies shall be continued in force until
expiration, subject to earlier termination in accordance
with Company's underwriting standards or for nonpayment of
premium.
(iii) Company shall, if Agent so requests, renew all policies
written through Agent for the next one year policy period
which commences on the effective date of termination. In no
event shall the period be more than one year, unless such
period is extended by law. Company shall have no obligation
to renew or continue coverage through the terminated Agent
under this subsection unless:
A. The risk being insured is acceptable to Company
according to the underwriting standards in effect on
the renewal or anniversary date; and
B. Agent is not in violation of this Agreement; and
C. Agent's license is in force; and
D. The policy is not cancelled or nonrenewed for statutory
cause.
(iv) Company shall honor any direct request by a policyholder for
coverage through another agent or for cancellation of the
policy.
(v) Agent shall be authorized, subject to underwriting rules and
practices of Company, to effect any necessary changes on
inforce policies of insurance, provided that the changes do
not increase or extend Company's liability under, or alter
the terms of, any such policy. Agent shall collect and remit
premium to Company on such policies as a fiduciary and in
accordance with Company procedures and this Agreement.
(vi) Company shall pay commissions for all policies renewed under
the provisions of subparagraph (iii) above, either at the
rate specified in the Schedule, or at Company's standard
rate at time of renewal, whichever is less. This provision
shall not apply if Company is legally prohibited from
issuing nonrenewal notices or nonrenews a policy of
insurance according to proper nonrenewal procedure, but is
nonetheless required by law or regulation to reinstate it,
unless commissions on such renewals are required by law to
be paid. This provision shall also not apply following
expiration of the one-year renewal cycle described in
subparagraph (iii), above.
(vii) Subparagraph (iii), (v) and (vi) above shall apply only if
ownership of the policies remains with Agent, pursuant to
Section X below.
b. Upon termination, Agent shall return to Company any unused
applications, policies, claim drafts, forms or other Company supplies
furnished to Agent. These shall always remain the property of the
Company and must be accounted for upon demand by Company.
c. Company shall, at Agent's request, provide a record of unexpired
direct billed policies Agent has placed with Company.
X. Ownership of Business
a. While this Agreement is in effect, Company shall not use its records
of insurance placed by Agent to directly contact policyholders for the
purpose of offering other kinds of insurance, products or services.
This provision shall not apply when Company is required by law to
directly contact its policyholders or when Company is acting on the
Agent's behalf. In either case, Company shall send Agent an advance
copy of such documents and they shall refer the policyholder to Agent
for additional information.
b. In the event of termination of this Agreement, Agent having promptly
accounted for and paid over to Company all premium for which Agent may
be liable, Agent's records, and use and control of expirations, shall
remain the property of Agent and be left in Agent's undisputed
possession; otherwise records, and use and control of expirations
shall be vested in Company with right of sale. In the exercise of its
right to collect any indebtedness due from Agent, including the sale
of expirations, Company shall be accountable to Agent for any sums
received which, net of expenses, exceed the amount of Agent's
indebtedness including accumulated interest, and Agent shall remain
liable for the amount by which such indebtedness and interest exceeds
the sums actually received by Company and such excess shall be payable
by Agent at any time upon demand by Company and without regard to the
terms of any promissory note, agreement of sale, or other collection
agreement providing for periodic or postponed payment of the
indebtedness.
XI. Underwriting Pools
The provisions of this Agreement shall not apply to business administered by
Underwriting Associations Syndicates or Pools.
XII. Brokered Business
Agent shall submit to Company only that business which Agent has directly
solicited and which is under Agent's direct control. Agent shall not broker
business for another producer without the prior written approval of an
authorized Company representative.
XIII. Financial Statements
Upon request, Agent shall provide Company with Agent's financial statements
prepared in accordance with generally accepted accounting principles and upon
which a certified public accountant has rendered a compilation letter.
XIV. Non-Waiver
Failure or delay of Company for any reason, or for any length of time, to
exercise any of its rights under this Agreement or to insist upon Agent's
compliance with any or all provisions of this Agreement shall not constitute
waiver thereof in whole or in part.
XV. Records
In the event of a discrepancy between Agent's and Company's records regarding
insurance placed with Company by Agent, the records of the Company shall
control.
XVI. Advertising
a. Agent may broadcast, publish and distribute materials referring to
Company and to its products and services; provided, however, that
Agent shall first secure Company's written authorization with respect
to any such materials which were not prepared by Company.
b. With respect to materials which were prepared by Company and which
refer to Company and to its products and services, Agent shall not
alter any such materials and thereafter broadcast, publish or
distribute them as altered without first obtaining Company's written
authorization.
c. Agent shall not employ, reproduce or display Company trademark,
service ▇▇▇▇, logo or other identifying symbols in any manner
whatsoever without first obtaining written authorization from Company.
XVII. Data Entry Systems
a. With regard to all Company data entry systems, in entering appropriate
new business or policy change data into said systems, Agent shall:
(1) adhere to the current underwriting guides and binding authority
for the specific line of business;
(2) retain on file signed application forms for any new business
transactions where required by law;
(3) retain on file any state-mandated forms that require the
insured's signature; and
(4) correct any data entry errors, whether such errors are discovered
by Company or by Agent.
b. With regard to Company's Personal Property Data Entry System Agent
shall retain on file:
(1) the Home Cost Estimator;
(2) the following Company underwriting forms where required by
Company underwriting guides:
(i) Appraisal;
(ii) Home Security Credit form;
(iii) Suburban Rating form;
(3) any other form required by Company; and
(4) a photograph of the dwelling, if required.
c. With regard to Company's Personal Auto Data Entry System, Agent shall:
(1) retain the following Company underwriting forms where required by
Company underwriting guides:
(i) A. Good Student Certificate; (ii) B. Defensive Driver
Certificate; and (iii) C. Anti-Theft Credit form;
(2) retain any other forms required by Company;
(3) forward to the appropriate Branch Office Underwriting Department
all Physical Damage Inspection reports and photographs, where
required by law; and
(4) for each applicant, either order an MVR through Company's system
or send an MVR to the Company underwriter assigned to Agent.
d. Company has the right to inspect Agent's files to confirm that Agent
is in possession of all documents named herein upon reasonable notice,
at any time during normal working hours. Any file criticized as a
result of a data entry systems audit shall be corrected by the Agent
as soon as practicable.
e. Agent shall keep all underwriting documents named herein for that
period of time required by applicable state law, and in no event for
less than three years from the date of policy expiration.
f. Company agrees to hold Agent harmless from any damages arising
directly from the destruction of any or all of the underwriting
documents named in this Section XVII when such destruction is due to
property damage from natural causes or causes beyond the knowledge and
control of Agent.
XVIII. Automatic Compliance
Any provision or stipulation of this Agreement not in accord or compliance with
applicable law shall be nonetheless construed to be limited or broadened, as the
case may be, to comply with such law.
XIX. Headings
The section headings in this Agreement are for convenience of reference only and
shall not affect its interpretation.
XX. Governing Law
This Agreement shall be governed by and construed in accordance with the laws of
the Commonwealth of Pennsylvania without giving effect to principles of
conflicts of laws.
XXI. Plural
The singular shall be deemed to include the plural and vice versa as the context
may require.
XXII. Agreement Effective
This Agreement supersedes all previous agency agreements, whether written or
oral, between Company and Agent, and
a. shall be effective 9/14/94, ________; and
b. shall continue in full force and effect until amended, suspended or
terminated as elsewhere provided herein.
IN WITNESS WHEREOF, Agent and Company have caused this Agreement to be executed
this __________________ day of _____________________________, __________.
For Agent By: For Company By:
/s/ /s/ ▇▇▇▇ ▇. ▇▇▇▇▇▇▇
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CHIEF FINANCIAL OFFICER Manager
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(Title) (Title)
Agency Code No.: 850116 and 850120
Addendum to Agency Agreement
1. Authority of Agent
b. The following sentence will be added:
Company agrees that Binding Authority will not be changed for the purpose
of company directly or indirectly assisting another agency in placing
similar coverage.
11. Premium Accounting
h. The following sentence will be added:
All financial and accounting records of the Company pertaining to business
written through Agency shall be subject to inspection or audit by Agency
representatives at all reasonable times.
IV. Commissions
b.2. The first sentence of this section is modified to read 360 days in
place of 90 days.
b.3. The first sentence is modified to eliminate Section IX.a.3.
b.5. This Section is Added to Agreement as follows:
If this Agreement is terminated under Section IX.a.3. commission payments
shall continue to be paid to Agent for the remaining current one-year
policy period, subject to earlier termination in accordance with Company's
underwriting standards or for nonpayment of premium. At the end of the
current one-year policy period commission payments to Agency will cease.
IX. Termination
a.2. Is replaced by:
By Company, immediately with certified return receipt notice to Agent, in
the event of Agent's fraud, insolvency, gross and willful misconduct,
abandonment or, except for direct billed policies, failure to pay over to
Company monies due after receipt of written demand therefor;
a.3. Change
Change "without notice" to "with certified return receipt notice".
X. Ownership of Business
b. Entire Section is replaced by:
In the event of termination of the Agreement for any reason except IX.a.1.
and or that portion of IX.a.2. excluding "or failure to pay over to Company
monies due after receipt of written demand therefor", Agent's records and
use and control of expirations shall remain property of Agent: however, to
the extent of any unpaid premium on an existing policy, Company shall
control the records and expirations regarding the unpaid premium.
XII Brokered Business
Section is removed entirely.
XV Records
Section is removed entirely.
This Addendum forms part of the Agency Agreement. All other terms and
conditions of the Agency Agreement shall remain the same.
In Witness Whereof, Agent and Company have caused this Addendum to be
signed this _____________________ day of_______________________.
For Agent by: For Company by:
/s/ /s/
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CHIEF FINANCIAL OFFICER Manager
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(Title) (Title)
Agent Code No(s)
850116
850120
GA\
GENERAL Association and Franchise Branch
ACCIDENT ▇▇ ▇▇▇ ▇▇▇
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215 574.1600
▇▇▇ ▇▇▇ ▇▇▇▇ (FAX)
ASSOCIATION & FRANCHISE
BONUS COMMISSION AGREEMENT
General Accident Insurance, its successors or assigns is a party to this
Agreement and is severally, but not jointly referred to as the "Company".
Preferred Employers Group Inc.
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Name
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Address
is party to this Agreement and is referred to as the "Agent". It is agreed
between the Company and the Agent that: In consideration of the special effort
of the Agent to increase writings of profitable business through the production
of association and or franchise business and to comply with all terms of the
Agency Agreement between the Company and the Agent dated 9/1/94, the Company
agrees to pay
("Agency Agreement")
the Agent as additional compensation to that outlined in the Association &
Franchise Commission Schedule to the Agency Agreement, a percentage share of the
premiums earned during the Bonus Period.
Definitions
Earned Premium - Written Premium for the Profit Sharing Period, plus unearned
premium reserve as of the first day of the Profit Sharing Period, less unearned
premium reserve as of the last day of the Profit Sharing Period. This is for
direct business only.
Loss Ratio - The loss ratio shown on the Agent's Producer Experience Reports for
the Bonus Period, excluding loss ratio attributable to Agent's surety business.
This includes both direct & broker business.
Bonus Commission - Amount of compensation due Agent under the terms of this
Agreement for the Bonus Period.
Bonus Factor - The percentage amount located at the intersection of the row
representing Agent's Written Premium for direct business, for the Bonus Period
and the column representing the Agent's Loss Ratio for the Bonus Period as shown
on the
General Accident Insurance Company of America, The Camden Fire Insurance
Association, Potomac Insurance Company of Illinois, Pennsylvania General
Insurance Company, GA Insurance Company of New York, General Assurance Company,
PG Insurance Company of New York.
Bonus Commission Schedule which is attached. Both the direct and broker agency
codes will be used in the determination of the loss ratio.
Bonus Period - Calendar year for which the Agents Bonus Commission is being
calculated.
Qualifying Premium - Minimum amount of direct Written Premium which the Agent
must produce during the Bonus Period in order to be eligible for compensation
under the terms of this Agreement.
Written Premium - The amount of written premium, excluding surety premium, shown
on the Agent's Producer Experience Report for the Bonus Period and generated
through the Agency code shown in this Agreement for direct business. All other
premium shall be excluded from this number unless inclusion of such premium
amount is agreed to in writing by both the Agent and the Company.
Qualification
In order to be eligible for Bonus Commission under the terms of this Agreement,
the Agent must produce the minimum premium at the loss ratio shown on the
attached Bonus Commission Schedule.
Calculation Provisions
Within 90 days of the end of the Bonus Period, the Company shall determine the
Agent's Bonus Commission by multiplying the Agents Earned Premium for such
period by the appropriate Bonus Factor. Only the Earned Premium for the direct
agency code will be used in this calculation.
There are no Stop Loss Provisions
General Provisions
Amendment
The Company may amend this Agreement at any time upon sixty (60) days written
notice to the Agent. The effective date of such amendment shall be January 1 of
the Bonus Period immediately following the calendar year in which such notice is
given.
This agreement may be amended at any time upon written agreement of the Company
and the Agent.
Offset - The Company may apply any compensation due the Agent under this
Agreement toward any indebtedness owed the Company by the Agent, excluding
Account Current balances that are not overdue and including any collection cost
incurred by the Company.
Suspension of Payment - If the Agent is delinquent in the payment of any monies
due the Company or in settling an Account Current balance, any amount due the
Agent under this Agreement may be withheld by the Company until such time as
payment in full of the balance due is received by the Company. Payment of the
Agent's Bonus Commission under this paragraph shall be net of any expenses
incurred by the Company in attempting to collect the above referenced delinquent
amount.
Termination -
This Agreement may be terminated by either party at any time upon ninety (90)
days' written notice to the other.
This Agreement shall terminate immediately upon termination of the Agency
Agreement.
No Bonus Commission shall be paid to the Agent for the Bonus Period during which
the Agreement terminates.
Assignment - This Agreement shall not be assignable by the Agent except upon the
written consent of the Company.
Records - In the event that the records of the Company and of the Agent do not
agree for purposes of this Agreement, the records of the Company shall control.
Notices - Any notices required to be given shall be sufficiently given if sent
by certified mail, return receipt requested, to the Agent at the address shown
on previous page and to the Company at the following address:
General Accident Insurance Company of America
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Attention: Marketing Department
Governing Law - This Agreement shall be governed by and construed in accordance
with the laws of the Commonwealth of Pennsylvania without giving effect to
principles of conflict of laws.
Headings - The section headings in this Agreement are for the convenience of
reference only and shall not affect its interpretation.
Supersession - This Agreement supersedes all previous Bonus Commission
agreements between the Company and the Agent and shall continue in full force
and effect until amended, suspended or terminated.
In Witness Wherof, the Agent and the Company have caused this Agreement to be
executed on ________________________________.
For Agent by: For Company by:
/s/ /s/
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CHIEF FINANCIAL OFFICER Manager
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(Title) (Title)
Direct Agency Code No.: 850116
Broker Agency Code No.: 850120
GA \ Statement of
Binding Authority
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Agency Name: Preferred Employers Group, Inc.
Date: 9/14/94 Code: 850116 And 850120
1. Binding Authority
a. Agent's binding authority is subject to all Company underwriting
guides. Agent shall not bind Company to any business that is in
violation of those guides.
b. Agent's authority for the following lines of business is set forth
opposite each:
Commercial Lines of Business Limits of Liability
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Property: Fire, Packages, BOP, GF MCP, MOP/PPP, Plate Glass 1,000,000
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Inland Marine: Builders' Risk, Motor Truck Cargo, EDP and
Contractors' Equipment 1,000,000
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Burglary: 25,000
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Commercial Auto Liability: CSL 1,000,000
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General Liability: 1,000,000 OCC
Including Sect. II of Package: 2,000,000 PROD. AGG.
Premises/Operations - Agg/Occur BOP & MCP
Products/Comp Ops - Agg/Occur 1,000,000 OCC
Personal/Advertising Injury: GF, MCP, BOP 3,000,000 AGG.
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Excess Catastrophe Policy: 1,000,000
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Workers' Compensation:
Accident- Each Accident 100,000
Disease - Policy Limit 500,000
Disease - Each Employee 100,000
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Other:
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Personal Lines of Business Limits of Liability
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Property: Fire, Homeowners N/A
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Liability: Homeowners N/A
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Personal IM: Per Item N/A
Per Schedule
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Personal Auto: Liability N/A
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Personal Umbrella: N/A
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Other: N/A
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BONUS COMMISSION
Preferred Employers Group Inc.
Written Premium Loss Ratio
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0-29.9 30-39.9 40-44.9 45-49.9 50-52.9 53-54.9 55.0 & Up
------------------------------------------------------------------------------------------------------------------
Less Than 500,000 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------
500,001-1,250,000 6.5 4.5 3.0 1.5 .5 0 0
------------------------------------------------------------------------------------------------------------------
1,250,001 -2,000,000 7.0 5.1 3.6 2.2 1.2 0 0
------------------------------------------------------------------------------------------------------------------
2,000,001 -2,750,000 7.5 5.7 4.2 2.9 1.9 0 0
------------------------------------------------------------------------------------------------------------------
2,750,001 -3,500,000 8.0 6.3 4.8 3.6 2.6 .5 0
------------------------------------------------------------------------------------------------------------------
3,500,001-4,000,000 8.5 6.9 5.4 4.3 3.3 1.0 O
------------------------------------------------------------------------------------------------------------------
Greater Than 4,000,001 9.0 7.5 6.0 5.0 4.0 2.0 0
------------------------------------------------------------------------------------------------------------------
For Agent By: For Company By:
/s/ /s/
----------------------------- ------------------------------
CHIEF FINANCIAL OFFICER Manager
----------------------------- ------------------------------
(Title) (Title)
2/2/95
----------------------------- ------------------------------
(Date) (Date)
Agency Code No (s) Direct 850116
Brokered 850120
** Confidential Treatment Requested
GA\ Association & Franchise
Commission Schedule
▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇
▇ & ▇
▇▇▇▇▇▇ ▇▇▇▇(▇) ▇▇▇▇▇▇ Agency name Preferred Employers Group Inc. (Direct)
State Florida
In accordance with the terms of the Agency Agreement to which this is attached,
the rates of commission payable on Association & Franchise business for each of
the following lines of business and the effective date of each rate are as
follows:
All companies
------------------------------------------------------------
1. Commercial Property Policies New Renewal Effective Date
------------------------------------------------------------
(a) Comm. Fire & Allied Lines
------------------------------------------------------------
(b) Commercial Package ** ** **
------------------------------------------------------------
(c) Business Owners ** ** **
------------------------------------------------------------
(d) Master Craftsman
------------------------------------------------------------
(e) Premier Property Policy ** ** **
------------------------------------------------------------
(f) Other Comm. Inland Marine ** ** **
------------------------------------------------------------
2. Commercial Casualty Policies
(a) Commercial Auto ** ** **
------------------------------------------------------------
(b) General Liability
------------------------------------------------------------
(c) Professional Liability
------------------------------------------------------------
(d) Commercial Umbrella ** ** **
------------------------------------------------------------
(e) Workers' Comp graded from ** ** **
------------------------------------------------------------
(f) Plate Glass
------------------------------------------------------------
(g) Burglary
------------------------------------------------------------
(h) Surety
------------------------------------------------------------
Contract
------------------------------------------------------------
Non Contract
3. Personal Property Policies
(a) Dwelling Fire & Allied Lines
------------------------------------------------------------
(b) Homeowners - Owners
(including inland marine forms attached thereto)
------------------------------------------------------------
(c) Homeowners - Tenants
(including inland marine forms attached thereto)
------------------------------------------------------------
(d) Personal Inland Marine
4. Personal Casualty Policies
(a) Private Passenger Automobile policies except as listed in (b) below
------------------------------------------------------------
(b) Class 2 or class codes 82-89
------------------------------------------------------------
(c) Personal Umbrella
** Confidential Treatment Requested
GA\ Association & Franchise
Commission Schedule
▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇
▇ & ▇
▇▇▇▇▇▇ ▇▇▇▇(▇) ▇▇▇▇▇▇ Agency name Preferred Employers Group Inc. (Brokered)
State Florida
In accordance with the terms of the Agency Agreement to which this is attached,
the rates of commission payable on Association & Franchise business for each of
the following lines of business and the effective date of each rate are as
follows:
All companies
------------------------------------------------------------
1. Commercial Property Policies New Renewal Effective Date
------------------------------------------------------------
(a) Comm. Fire & Allied Lines
------------------------------------------------------------
(b) Commercial Package ** ** **
------------------------------------------------------------
(c) Business Owners ** ** **
------------------------------------------------------------
(d) Master Craftsman
------------------------------------------------------------
(e) Premier Property Policy ** ** **
------------------------------------------------------------
(f) Other Comm. Inland Marine ** ** **
------------------------------------------------------------
2. Commercial Casualty Policies
(a) Commercial Auto ** ** **
------------------------------------------------------------
(b) General Liability
------------------------------------------------------------
(c) Professional Liability
------------------------------------------------------------
(d) Commercial Umbrella ** ** **
------------------------------------------------------------
(e) Workers' Comp graded from ** ** **
------------------------------------------------------------
(f) Plate Glass
------------------------------------------------------------
(g) Burglary
------------------------------------------------------------
(h) Surety
------------------------------------------------------------
Contract
------------------------------------------------------------
Non Contract
3. Personal Property Policies
(a) Dwelling Fire & Allied Lines
------------------------------------------------------------
(b) Homeowners - Owners
(including inland marine forms attached thereto)
------------------------------------------------------------
(c) Homeowners - Tenants
(including inland marine forms attached thereto)
------------------------------------------------------------
(d) Personal Inland Marine
4. Personal Casualty Policies
(a) Private Passenger Automobile policies except as listed in (b) below
------------------------------------------------------------
(b) Class 2 or class codes 82-89
------------------------------------------------------------
(c) Personal Umbrella
