Exhibit 6.02
AGENCY
AGREEMENT [LOGO]
INSURANCE
This Agreement entered this 6th day of September, 1985, by and
between the undersigned insurance company or companies (hereinafter
collectively called "Company" or "the Company") and Xxxx X. Xxxxx DBA Xxxx
Xxxxx & Associates of Concordia in the County of Cloud and State of Kansas
(hereinafter called "Agent"),
WITNESSETH:
In consideration of the mutual covenants herein contained and other good
and valuable consideration, the parties hereto agree as follows:
I. APPOINTMENT AND AUTHORITY. That, upon the terms and conditions herein
set forth, Company hereby appoints Agent its agent for the purpose of and with
authority to solicit applications for insurance and bonds, deliver and
countersign policies and endorsements thereon, deliver bonds, collect premiums
for transmission to Company, bind Company temporarily to permit transmission
of applications for insurance and endorsements to Company for approval and
processing or disapproval, such authority to bind Company being subject to
such restrictions as may be outlined in Company manual or otherwise imposed by
Company from time to time.
Nothing contained herein shall be construed to create the relation of
employer and employee between Company and Agent. Agent shall be free to
exercise his own judgment as to persons from whom he will solicit insurance or
bonds and the time and place of solicitation, but Company may from time to
time prescribe underwriting rules and regulations respecting the conduct of
the business covered hereby (not interfering with such freedom of action of
Agent), which underwriting rules and regulations shall be observed by Agent.
II. COMMISSIONS. Company agrees to pay Agent commissions on all premiums
remitted upon business solicited by him at the percentages determined in
accordance with the commission schedule of Company in effect at the beginning
of the policy period or term as stated in the original policy or in any
extension or renewal thereof, or inception date of a Surety Bond, or effective
date of annual or three-year premium period of a Fidelity Bond. No reduction
in any rate of commission, as specified in the commission schedule, may be
made until the Company has had such rate of commission in effect for a period
of one year and the Company has given Agent at least 90-days notice of any
proposed reduction in such rate of commission.
III. SUPPLIES. Supplies furnished by Company to Agent for Agent's use in
the conduct of his business shall be property of Company and shall at all
times be subject to the inspection and control of Company. Company shall not
otherwise be liable for any of Agent's expenses other than those which it may
expressly agree to assume as a result of negotiations between the parties.
IV. REMITTANCE OF PREMIUMS. Premiums shall be considered due from Agent on
the first day of the month following the month in which the policy or bond,
additional premium, or excess audit has been charged to Agent's statement. If
Agent has not remitted all such monies to Company within forty-five days from
the end of the month in which the business is charged, all unremitted items in
the statement shall become delinquent. Any credit given by Agent to an Insured
shall be at Agent's own risk, and any of the provisions herein contained shall
not be construed as an authorization for the extension of credit by Agent to
an Insured an behalf of Company. Company may, at its option, take over for
collection any and all delinquent items in Agent's statement not collected or
remitted for by Agent and in such event, Agent agrees to waive commission
thereon.
Company shall make the necessary audits on policies and bonds written by
Agent requiring such audits for the computation of premium. In the event an
additional premium is produced by any audit, such additional premium shall be
charged to Agent's account, and Agent agrees to collect the additional
premium, from the Insured and remit same to Company less his commission within
forty-five days from the end of the month in which such additional premium is
charged to Agent's account. In the event Agent is unable to collect such
additional premium within the forty-five day period, and within ten days after
the expiration of said forty-five day period notifies Company in writing to
this effect and requests Company to take over for direct collection such
additional premium, Company agrees to assume responsibility for the collection
of such additional premium and to credit Agent's account with the amount of
such additional premium less commission, and Agent agrees to waive all claims
for commission credits thereon. If Agent fails to notify Company of his
inability to collect additional premiums as herein provided, Agent agrees that
he will pay such additional premiums to Company in accordance with the
provisions of this Agreement. In the event any audit produces a return premium
due the Insured, Agent agrees to pay said return premium in full to the
Insured and Company will credit Agent's account with the amount of said return
premium less his commission, as provided in this Agreement. In the case of
bonds which cannot be terminated by written notice to the obligee, Agent may,
by like notice, relieve himself of the responsibility to collect and remit
renewal premiums.
V. MONIES DUE AGENT. Company agrees to pay all monies due by it to Agent
as shown by any monthly statement within forty-five days from the end of the
month for which such statement is rendered; provided, however, that Company
may accumulate monthly amounts payable if less than ten dollars until they
equal or exceed such amount before making payment hereunder.
VI. PREMIUMS CONSTITUTE TRUST FUND. It is specifically understood and
agreed that all premiums collected by Agent are at all times the property of
Company and held in trust by Agent for and on behalf of Company as a fiduciary
trust subject to remittal to Company as hereinbefore stated and shall not be
used for any other purpose whatsoever except that permission is granted (until
revoked) for Agent to use such portion of trusteed premiums as may be
necessary to pay return premiums. The keeping of an account with Agent on
Company's books as creditor and debtor account is declared a record memorandum
of business transacted, and neither such keeping of account, nor alteration in
compensation rate, nor failure to enforce prompt remittance or compromise or
settlement or declaration of balance of account, shall be held to waive
assertion of trust relation as to premiums collected by Agent. It is further
understood and agreed that the commission which Company agrees to pay Agent
shall be considered a debt due by Company to Agent and shall not be construed
in any way as giving Agent a lien or claim on said premiums, and in case
Company allows Agent, for the purpose of facilitating the handling of its
business, to deduct the commission from premiums collected, it shall in no
sense be construed as a waiver of the rights of Company to its ownership of
the premiums or in any manner affect the trust character of said premiums.
VII. CANCELLATION OF POLICIES. Company shall have at all times the right
to reject applications, alter, suspend or cancel any policy or bond (if bond
form contains cancellation provision) and direct the return of the unearned
premium thereon. Agent agrees to pay such unearned return premium in full to
the Insured, and Company will credit Agent's account with the amount of said
return premium, less return commission at the percent of commission in effect
at the beginning of the policy period or term as stated in the original policy
or any extension or renewal thereof, or inception date of a Surety Bond or
effective date of an annual or three-year premium period of a Fidelity Bond.
Flat cancellations will not be allowed to Agent on six months or three
months auto plan policies, Commercial-AID Excess Liability Policies, or filed
truck policies unless the policies are returned for cancellation prior to the
effective date.
Flat cancellations will be allowed on all other policies or bonds not
accepted, delivered or paid for provided such policies or bonds are returned
for cancellation within thirty days of the beginning of the policy period or
term. However, if Agent permits such policies or bonds to remain outstanding
beyond thirty days, he shall be charged with and agrees to pay the pro rata
earned premium commencing at the beginning of the policy period or term as
stated in the original policy or any extension or renewal thereof, or
inception date of a Surety Bond or effective date of an annual or three-year
premium period of a Fidelity Bond.
VIII. SUBAGENTS. Agent may appoint subagents, subject to approval of
Company, and such subagents shall for the purpose of this Agreement be deemed
employees of Agent. Agent shall be responsible for all monies collected
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by or passing through the hands of his employees and shall be responsible for
the premiums, commissions, charges or expenses of subagents or other persons
from whom he may procure business.
IX. OWNERSHIP OF EXPIRATIONS. Upon termination of this Agreement by either
party hereto, if Agent's account is not then delinquent and if Agent shall
thereafter remit to Company within forty-five days from end of the month in
which business is charged to Agent, all monies due Company, the records, use
and control of expirations shall be deemed the property of Agent; otherwise
the records, use and control of expirations shall be vested in Company.
X. TERMINATION. Either Company or Agent may terminate this Agreement at
any time by notice in writing to the other effective immediately; provided,
however, that if Agent's account with Company is not delinquent or Agent has
not otherwise violated the terms of this Agreement and Agent has not requested
termination, Company shall give Agent not less than ninety days written notice
of any such termination. Upon termination, Agent shall immediately surrender
and return to Company his license (subject to applicable Insurance Department
requirements) and all policies, supplies or other property of the Company in
his possession if requested to do so by Company. Upon termination of the
Agreement by either party hereto, all monies and premiums which have been
collected by Agent that are delinquent shall become due and payable to Company
upon the effective date of the termination of the Agreement. in the event this
Agreement is terminated by Company for violation of its terms by Agent, Agent
relinquishes all right or claim to commission on subsequent, excess or
additional premiums developed, and Company shall have the right to collect all
outstanding premiums if it so elects, and Agent agrees to waive or relinquish
his right or claim for commission on same. In the event it becomes necessary
for Company to institute legal proceedings for the recovery of any monies due
Company from Agent, Agent agrees to pay all reasonable attorney fees, legal
costs of such proceedings, and interest at the legal rate upon such monies
from the date upon which they become due and payable to Company.
Effective immediately upon such termination, except as otherwise provided
hereinafter, the agency relationship existing between Company and Agent by
virtue of this Agreement shall cease, and all previous contracts, agreements,
understanding or arrangements of every kind, whether oral or written, creating
or providing for such agency for Company or authorizing Agent to write or
issue policies of insurance or bonds for Company, or to solicit or take
applications therefor, shall terminate. Agent agrees to pay all sums due from
Agent to Company on business written prior to such termination date and all
other monies due upon receipt of any monthly statement thereafter. Agent
agrees to report to Company all policies or bonds issued or bound by Agent
prior thereto. Agent's liability to account to Company for premiums collected
and to pay over to it any monies due hereunder shall survive any termination
of this Agreement
XI. LIMITED AGENCY FOLLOWING TERMINATION. If Agent's account with Company
is not delinquent on the effective date of termination of the Agreement and
Agent is not otherwise in default under any terms of such Agreement, Company
agrees that following any such termination existing business written by Agent
will be allowed to run until expiration and Agent shall have limited authority
with respect thereto as follows:
1. Agent may elect to continue outstanding policies and bonds previously
written through Agent in force until expiration, subject to
cancellation privileges by Company or the policyholder prior to
expiration, and in such event Agent agrees to service such policies and
bonds, collect premiums due thereon, if any, on the due date thereof
and remit the collections promptly to Company. Any unearned commission
on return premiums will be charged to Agent's account and Agent agrees
to repay the same to Company forthwith on receipt of billing thereof.
In case an audit of outstanding policies or bonds requires an
additional premium to be assessed against the policyholder or obligor,
Agent agrees to collect the same on the due date and make prompt
remittance thereof to Company. In the event Agent is not able to
collect such premiums within forty-five days from the end of the month
in which such premium is charged to his account, Agent may relieve
himself of the responsibility to collect and remit such premium by
notice to Company within the time and in the manner provided in such
cases under "Remittance of Premiums" in the Agreement, and thereupon
Company agrees to assume collection thereof, as therein provided.
2. Company agrees to pay Agent commissions on policies or bonds in force
until expiration or cancellation at the same rates as it then pays
commissions on like business to existing Agents in Agent's state.
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3. Agent shall have the right to request appropriate endorsements an
policies or bonds in force, provided that no such endorsements shall
increase or extend Company's liability or extend the term of any policy
or bond unless prior approval of Company shall have been obtained.
4. Unless sooner cancelled, these limited agency provisions shall continue
until all policies and bonds written by Agent for Company shall have
expired.
5. The provisions of the Agreement entitled "Premiums Constitute Trust
Fund" shall apply to premiums collected by Agent during the period of
limited agency hereunder. If Agent has not remitted all monies due to
Company within forty-five days from the end of the month in which the
business is charged, Agent agrees (THIS LINE OF TEXT FROM ORIGINAL IS
UNREADABLE) Company; otherwise, the records, use and control of the
expirations shall be deemed the property of Agent.
XII. INDEMNIFICATION AGREEMENT. The Company agrees to defend and indemnify
Agent against liability, including the cost of defense and settlements,
imposed on him by law (including the Fair Credit Reporting Act - Public Law
91-508) for damages caused by acts or omissions of the Company, provided Agent
has not caused or contributed to such liability by his own acts or omissions.
Agent agrees, as a condition to such indemnification, to notify the Company
promptly of any suit against him and to allow the Company to make such
investigation, settlement, or defense thereof as the Company deems prudent.
XIII. FORMER CONTRACTS ABROGATED. It is mutually agreed that the execution
of this Agreement by the parties hereto abrogates, terminates and voids all
previous Agency Contracts or Agreements made between the parties hereto,
except as to commissions on business written under a previous Contract or
Agreement provided for in such Contract or Agreement, provided, however, that
nothing herein shall be construed to affect or waive any claim of any kind,
whether for money or otherwise, of Company against Agent under any previous
Agency Contract or Agreement.
XIV. NOTICES. Notices under this Agreement may be given by delivering or
mailing a copy to the party entitled to notice. Notice by mail shall be deemed
sufficiently given when mailed by ordinary United States Mail, postage
prepaid, addressed to Company at 000 Xxxxx Xxxxxx, Xxx Xxxxxx, Xxxx, or to
Agent at the last known address of his agency according to Company records.
XV. AGREEMENT SUBJECT TO APPLICABLE LAWS AND REGULATIONS. The terms of
this Agreement shall be subject to all applicable laws and regulations and in
the event of conflict between the terms of this Agreement and any such laws or
regulations, the latter shall govern.
It is expressly understood and agreed there are no promises, agreements, or
understanding other than those contained in this written Agreement, and that
no agent or other representative of Company has any authority to obligate
Company by any terms, stipulations or conditions not herein expressed unless
the same be in writing and attached to and made a part of the Agreement.
For Agent For Company
AID INSURANCE COMPANY (MUTUAL)
Xxxx X. Xxxxx DBA
Xxxx Xxxxx & Associates BY /s/ Xxxxxxx X. Xxxxxxxx
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Agency Officer of Company
AMCO INSURANCE COMPANY
BY /s/ Xxxx X. Xxxxx BY /s/ Xxxxxxx X. Xxxxxxxx
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Name Title Officer of Company
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CORPORATE In consideration of Company appointing
AGENCY __________________________________, as Agent, and as
SUPPLEMENT inducement for Company to do so, the undersigned hereby
jointly and severally and for our heirs, executors',
administrators, successors and assignees guarantee and bind ourselves to the
faithful performance of all obligations by Agent under this Agreement to pay
any sum which Agent may become liable to pay Company by virtue of Agency
created under the foregoing Agreement and which Agent shall fail or refuse to
pay when due.
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WITNESS INDIVIDUALLY
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WITNESS INDIVIDUALLY
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WITNESS INDIVIDUALLY
NOTE - IN CASE THE AGENCY IS A PARTNERSHIP, THIS AGREEMENT MUST BE SIGNED BY
ALL PARTNERS. IF A CORPORATION OR A CONCERN DOING BUSINESS UNDER A NAME
INDICATING INCORPORATION, THIS AGREEMENT MUST BE SIGNED ABOVE IN THE NAME OF
THE CORPORATION OR CONCERN BY PROPER OFFICERS, AND IN ADDITION THE "CORPORATE
AGENCY SUPPLEMENT" COMPLETED WHERE IT IS REQUIRED.
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CHANGE OF NAME AND OWNERSHIP
ADDENDUM NO. TO:
/X/ 1 Agency Agreement and Corporate Agency Supplement dated April 1 , 19 86
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/X/ 1 AMANDA+ Agreement................................. dated March 11 , 19 92
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/ / Agency Terminal Agreement......................... dated , 19
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/ / Paperless Agency.................................. dated , 19
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/ / ALLIED P & C Agreement............................ dated , 19
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/ / Group Agency Agreement............................ dated , 19
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/ / ALLIED Crop Agency Agreement and
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Corporate Agency Supplement....................... dated , 19
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/ / Sponsor Agreement................................. dated , 19
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It is hereby agreed that the above executed Agreement(s) and all Addenda made
thereto between the undersigned Company or Companies and Xxxx Xxxxx &
Associates, Inc. as Agent is amended as follows:
Notice is hereby taken of change of ownership of the insurance agency
named as "Agent" in said Agreement(s) from Xxxx Xxxxx & Associates,
Inc. (Seller) to Brooke Corporation (Purchaser) effective as of June
16, 1992, and the name of the "Agent" in said Agreement(s) is hereby
changed to read Brooke Corporation, accordingly, Seller hereby assigns
said Agreement(s) and all his interest therein to Purchaser, who hereby
assumes and agrees to perform and to be bound by all the undertakings
and agreements contained in said Agreement commencing with such
effective date. The undersigned Company or Companies named in said
Agreement(s) (Company) hereby consent to such change of ownership and
assignment, upon the conditions hereafter stated.
Provided, that Seller shall nevertheless continue to be fully
responsible to Company for payment of all amounts due to it by way of
charges to the Agent's account prior to the effective date of such
change of ownership and assignment, and Purchaser agrees to be fully
responsible to Company for payment of any such amounts not paid by
Seller when due, as well as for all proper charges to the account of
the agent under said Agreement subsequent to the effective date of such
change of ownership and assignment. If Seller defaults in making
payment when due of the amount for which he has agreed herein to be
responsible and Purchaser fails to make good such default contrary to
his undertaking herein made, it is agreed that records, use and control
of expirations shall vest in and be deemed the property of the Company.
In addition to any other rights or remedies to which Company may be
entitled under the Agreement(s), at law, or in equity.
Except as herein specifically modified, said Agreement(s) and any prior
modifications thereof, if any, shall continue in full force and effect
according to their terms.
In witness whereof, the undersigned parties have executed this Addendum this
16th day of June, 1992
---- ----------------- --
/s/ Xxxxx X. Ovensing Seller: Xxxx Xxxxx $ Assoc. Inc.
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Witness /s/ Xxxx X. Xxxxx
s/ Xxxxx X. Ovensing -----------------------------------
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Witness Operating As: Xxxx Xxxxx & Associates, Inc.
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/X/ ALLIED Mutual Insurance Company (Name of Agency)
/X/ AMCO Insurance Company
/ / ALLIED Property and Casualty Insurance Company
/ / Depositors Insurance Company Purchaser: /s/ Xxxx Xxxxxx
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/ / Allied Crop Agency, Inc. -----------------------------------
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By: /s/ Xxxxxxx X. Xxxxxxxx Operating As: Brooke Corporation
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Officer of Company or Companies (Name of Agency)
NOTE: If sole Proprietorship, both husband and wife must sign as either seller
or purchaser; if Partnership, selling Partner must sign; if Corporation, only
officers may sign - new Corporate Supplement required.
[ALLIED GROUP LOGO]
A Nationwide-Registered Trademark-
Insurance Company
AMENDMENT TO AGENCY AGREEMENT
As consideration for the undersigned insurance companies willingness to
appoint BROOKE CORPORATION ("Agent") in those states where said companies and
Agent are authorized to do business, this amendment is made this 1ST day of
OCTOBER, 1998, by and between Nationwide Mutual Insurance Company, Nationwide
Insurance Company of America, Nationwide Mutual Fire Insurance Company,
Nationwide Property and Casualty Insurance Company, AMCO Insurance Company,
Depositors Insurance Company, ALLIED Property and Casualty Insurance Company,
and Agent.
WITNESSETH:
WHEREAS, Agent entered an agency agreement with AMCO Insurance Company and
ALLIED Mutual Insurance Company dated SEPTEMBER 6, 1985 ("Agreement"); and
WHEREAS, effective October 1, 1998, ALLIED Mutual Insurance Company was merged
into Nationwide Mutual Insurance Company with Nationwide Mutual Insurance
Company being the surviving entity; and
WHEREAS, due to the merger, the Agreement must be amended to substitute
Nationwide Mutual Insurance Company for ALLIED Mutual insurance Company; and
WHEREAS, to the extent Nationwide Mutual Insurance Company, Nationwide
Insurance Company of America, Nationwide Mutual Fire Insurance Company,
Nationwide Property and Casualty Insurance Company, AMCO Insurance Company,
Depositors Insurance Company, and ALLIED Property and Casualty Insurance
Company may be authorized to do business in those states which Agent does
business, these insurance companies are to be made a party to the Agreement.
NOW, THEREFORE, for the mutual promises exchanged and other good and valuable
consideration, the parties hereto agree as follows:
1. Nationwide Mutual Insurance Company hereby replaces ALLIED Mutual
insurance Company as a party to the Agreement and all amendments and
addenda thereto. ALLIED Mutual's name may continue to be used during a
transition period.
2. The term "Company" as defined and used in the Agreement and all
amendments and addenda thereto is expanded to include Nationwide Mutual
Insurance Company, Nationwide Insurance Company of America, Nationwide
Mutual Fire Insurance Company, Nationwide Property and Casualty Insurance
Company, AMCO Insurance Company, Depositors Insurance Company, and ALLIED
Property and Casualty Insurance Company in those states where said
companies are authorized to do business and agent is authorized to do
business and there is a mutual agreement to appoint.
Agreed to and effective as of the date set forth above.
Agent Company
72 - 15 - 06370 - 01 Nationwide Mutual Insurance Company
----------------------------- Nationwide Insurance Company of America
Nationwide Mutual Fire Insurance Company
XXXXXX XXX Nationwide Property and Casualty Insurance
----------------------------- Company
PHILLIPSBURG KS AMCO Insurance Company
----------------------------- Depositors Insurance Company
Allied Property and Casualty Insurance
Company
By: /s/ Xxxxxx X. Xxx By: /s/ Xxxxxx X. Xxxxxxxx
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Its: Chief Executive Officer Its:
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A Nationwide-Registered Trademark-
Insurance Company
KANSAS COMMISSION SCHEDULE
NATIONWIDE MUTUAL INSURANCE COMPANY
PROPERTY AND CASUALTY
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Until further notice, the Company agrees to pay the Agent commissions on all
premiums remitted upon policies solicited by Agent at the percentages shown in
the following schedule:
New Renewal
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Personal Lines
Private Passenger Automobiles
Preferred, Premier, Standard............................................ 15% 15%
Non-Standard (Tier 4)................................................... 10% 10%
Inland Marine........................................................... 15% 15%
*Monoline Homeowners.................................................... 15% 10%
*Homeowners (when combined with Private Passenger Automobiles).......... 15% 15%
Pleasure Boatowners..................................................... 15% 15%
Personal Umbrella....................................................... 15% 15%
Commercial Lines
Automobile
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Private Passenger Vehicles written under a BA (All classes)............. 15% 15%
Commercial Use (Except Truckmen)
200 miles and under................................................... 17.5% 17.5%
Over 200 miles........................................................ 15% 15%
Truckmen................................................................ 15% 15%
Automobiles Transporting Liquefied Petroleum Gas........................ 15% 15%
Casualty
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Commercial General Liability............................................ 20% 20%
(Except Exposures Involving Liquefied Petroleum Gas)................. 15% 15%
Workers' Compensation and Employer's Liability
1st $5,000 Premium................................................... 10% 10%
Next $5,000 Premium.................................................. 7% 7%
All Over $ 10,000 Premium............................................ 5% 5%
Crime................................................................... 20% 20%
Excess or Umbrella
Commercial........................................................... 15% 15%
Farm................................................................. 15% 15%
Mercantile........................................................... 15% 15%
Home Enterprise...................................................... 15% 15%
A Nationwide-Registered Trademark-
Insurance Company
KANSAS COMMISSION SCHEDULE
AMCO INSURANCE COMPANY
FIDELITY AND SURETY
Until further notice, the company agrees to pay the agent commissions on all
premiums remitted upon bonds solicited by agent at the percentages shown in
the following schedule:
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Individual or Schedule Fidelity Bonds...................................................... 30%
Depositor's forgery Coverage............................................................... 30%
Blanket Fidelity........................................................................... 20%
Financial Institution...................................................................... 15%
Surety - Other than risks rated as contract surety bonds................................... 30%
Contract Surety Bonds - All bonds rated in the Contract Bond section of the rating
manual published by the Surety Association of America
Premium for the first $2,500,000 of coverage......................................... 30%
Premium for the coverage over $2,500,000, but less than $5,000,000................... 15%
Premium for the coverage over $5,000,000, but less than $7,500,000................... 10%
Premium for the coverage over $7,500,000............................................. 7.5%
Commission on specially rated policies shall be determined on an individual
basis. The above percentages of commission shall apply to new and renewal
business alike.
A Nationwide-Registered Trademark-
Insurance Company
KANSAS COMMISSION SCHEDULE
NATIONWIDE MUTUAL INSURANCE COMPANY
FIDELITY AND SURETY
Until further notice, the company agrees to pay the agent commissions on all
premiums remitted upon bonds solicited by agent at the percentages shown in
the following schedule:
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Individual or Schedule Fidelity Bonds...................................................... 30%
Depositor's Forgery Coverage............................................................... 30%
Blanket Fidelity........................................................................... 20%
Financial Institution...................................................................... 15%
Surety - Other than risks rated as contract surety bonds................................... 30%
Contract Surety Bonds - All bonds rated in the Contract Bond section of the rating
manual published by the Surety Association of America
Premium for the first $2,500,000 of coverage......................................... 30%
Premium for the coverage over $2,500,000, but less than $5,000,000................... 15%
Premium for the coverage over $5,000,000, but less than $7,500,000................... 10%
Premium for the coverage over $7,500,000............................................. 7.5%
Commission on specially rated policies shall be determined on an individual
basis. The above percentages of commission shall apply to new and renewal
business alike.
A Nationwide-Registered Trademark-
Insurance Company
KANSAS COMMISSION SCHEDULE
AMCO INSURANCE COMPANY
PROPERTY AND CASUALTY
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Until further notice, the Company agrees to pay the Agent commissions on all
premiums remitted upon policies solicited by Agent at the percentages shown in
the following schedule:
New Renewal
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Personal Lines
Private Passenger Automobiles....................................... 10% 10%
AutoMax............................................................. 15% 15%
Recreational Vehicle Program........................................ 15% 15%
Monoline Dwelling Fire.............................................. 15% 10%
Dwelling Fire (When combined with Private Passenger Automobile)..... 15% 15%
*Monoline Homeowners................................................ 15% 10%
*Homeowners (When combined with Private Passenger Automobile) 15% 15%
Householders Policy Program......................................... 15% 15%
Pleasure Boatowners (Suppl. End.)................................... 15% 15%
Inland Marine....................................................... 15% 15%
Home Enterprise..................................................... 15% 15%
Mobile Homeowners................................................... 15% 15%
Commercial Lines
ALLIED Series........................................................... 15% 15%
Worker's Compensation and Employers' Liability.......................... 5% 5%
Commercial Property..................................................... 15% 15%
Commercial General Liability............................................ 15% 15%
Garage.................................................................. 15% 15%
Excess or Umbrella
Commercial............................................................ 15% 15%
Mercantile............................................................ 15% 15%
Commission on specially rated policies shall be determined on an individual
basis. Monoline means single policies or those not eligible for multi policy
discount.
A Nationwide-Registered Trademark-
Insurance Company
KANSAS COMMISSION SCHEDULE
ALLIED PROPERTY AND CASUALTY INSURANCE COMPANY
PROPERTY AND CASUALTY
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Until further notice, the Company agrees to pay the Agent commissions on all
premiums remitted upon policies solicited by Agent at the percentages shown in
the following schedule:
New Renewal
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Personal Lines
Private Passenger Automobile..................................... 15% 10%
Tier 4......................................................... 10% 10%
Recreational Vehicle Program..................................... 15% 10%
Pleasure Boatowners.............................................. 15% 10%
Homeowners....................................................... 15% 10%
Mobile Homeowners................................................ 15% 10%
Dwelling Fire.................................................... 15% 10%
Earthquake (Endorsement)......................................... 10% 10%
Inland Marine.................................................... 15% 10%
For the purpose of this commission schedule, the first term of any policy
written in the above named Company shall constitute "new business" and any
succeeding terms of any such policy shall constitute "renewal business". The
term "renewal business" shall include any policy (1) which covers as a named
insured the same individual, individuals, entity or entities for the same
category of risk(s) as any previous policy written in Company and (2) the
inception date of which is within 180 days of the termination date of such
previous policy. All other polices written under the terms of the Agency
Agreement shall constitute "new business".
6 month term Private Passenger Automobile will receive 15% commission for both
new business and the first renewal only. For the second and subsequent
renewals the commission shall be 10%.
A Nationwide-Registered Trademark-
Insurance Company
KANSAS COMMISSION SCHEDULE
DEPOSITORS INSURANCE COMPANY
PROPERTY AND CASUALTY
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Until further notice, the Company agrees to pay the Agent commissions on all
premiums remitted upon policies solicited by Agent at the percentages shown in
the following schedule:
New Renewal
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Personal Lines
AutoMax.......................................................... 15% 10%
Homeowners....................................................... 15% 10%
Pleasure Boatowners.............................................. 15% 10%
Dwelling Fire.................................................... 15% 10%
Earthquake (Endorsement)......................................... 10% 10%
Inland Marine.................................................... 10% 10%
Commercial Lines
Workers Compensation and Employer's Liability.................... 5% 5%
For the purpose of this commission schedule, the first term of any policy
written in the above named Company shall constitute "new business" and any
succeeding terms of any such policy shall constitute "renewal business. The
term "renewal business" shall include any policy (1) which covers as a named
insured the same individual, individuals, entity or entities for the same
category of risk(s) as any previous policy written in Company and (2) the
inception date of which is within 180 days of the termination date of such
previous policy. All other polices written under the terms of the Agency
Agreement shall constitute "new business".
6 month term Private Passenger Automobile will receive 15% commission for both
new business and the first renewal only. For the second and subsequent
renewals the commission shall be 10%.
ADDENDUM I
This Addendum (including any Exhibit or Amendment thereto hereinafter
"Addendum I") to that certain Agency Agreement which now exists between ALLIED
Mutual Insurance Company and AMCO Insurance Company (hereinafter, collectively
called Company) and the Agent designated therein shall be attached to and
become a part of said Agency Agreement effective. At any time prior thereto,
Agent may notify Company in writing of Agent's rejection of this Addendum I in
which case the offer of Profit Sharing herein contained shall be deemed to be
withdrawn. Upon any such rejection by Agent, said Agency Agreement shall
continue In force until terminated by either Company or Agent pursuant to the
terms and conditions thereof, and there shall exist no agreement whatsoever
between Company and Agent for Profit Sharing.
WITNESSETH;
In consideration of the continued existence of said Agency Agreement and
the mutual covenants contained herein, Company and Agent hereby amend said
Agency Agreement to include the following terms and conditions which
constitute and define this Profit Sharing Addendum I.
I. PROFIT SHARING. In addition to the commissions to be paid to Agent under
the terms of said Agency Agreement and to compensate Agent for exercising
skill, caution, and diligence in the selection of risks insured by the
Company, the company will pay to Agent a "Profit Share" (as hereinafter
defined and calculated) based on "Net Profit" (as hereinafter defined)
realized by the Company on business written by Agent. The Profit Share
shall be calculated using the following Formula for each "Profit Sharing
Year" (as hereinafter defined).
A. Formula. As of the end of each Profit Sharing Year (hereinafter "PSY"),
which shall be the accounting period beginning January 1 and ending on
December 31 in the same calendar year, Net Profit or Loss shall be
calculated as follows:
PERSONAL COMMERCIAL
LINES LINES TOTAL
1. Earned Premiums............................................. $ $ $
---------------- ---------------- --------------
2. Permissible Loss Ratios..................................... 56% 45%
3. Maximum Permissible Incurred
Losses (#1 x #2)............................................... $ $ $
---------------- ---------------- --------------
4. Combined Permissible Loss Ratio (#3 DIVIDED BY #1 x 100)............................................. %
--------------
5. Incurred Losses (No less than zero).................................................................. $
--------------
6. Incurred Loss Ratio (#5 DIVIDED BY #1 x 100)......................................................... %
--------------
7. Gross Profit Percentage (#4 - #6).................................................................... %
--------------
8. Gross Profit (#7 x #1)............................................................................... $
--------------
9. Gross Dividends Paid................................................................................. $
--------------
10. Net Dividends Paid (#9 x 0.45)....................................................................... $
--------------
11. Net Profit (#8 - #10)................................................................................ $
--------------
12. Agent's Profit Share (__________% of #12)............................................................ $
--------------
13. Reduction for Delinquencies (___________% of #11).................................................... $
--------------
14. Profit Share Payable (#12 - #13)..................................................................... $
--------------
B. Formula Definitions. Each numbered subparagraph hereunder explains or
defines that corresponding numbered subparagraph in the Formula set out in
paragraph I(A) of this Addendum I.
1. Earned Premiums for personal lines and commercial lines business are
defined as the Written Premiums on business produced during the Profit
Sharing Year minus the Unearned Premiums as of the end of the same year
plus the Unearned Premiums as of the end of the prior year.
2. Permissible Loss Ratios for personal lines and commercial lines are set
by Company to reflect its actual expenses and may be amended Pursuant
to paragraph II(H) hereof.
3. Agent's Maximum Permissible Incurred Losses for personal lines and for
commercial lines shall be calculated by multiplying the Permissible
Loss Ratio established for each such line by Earned Premiums therefor.
4. Agent's Combined Permissible Loss Ratio for any PSY shall be the
quotient, expressed as a percentage, which results when total Maximum
Permissible Incurred Losses are divided by total Earned Premiums.
5. Incurred Losses are defined as the net losses paid during the Profit
Sharing Year plus reserves for unpaid losses as of the end of the same
year and minus reserves for unpaid losses as of the end of the prior
year on all policies written by Agent with Company. If a negative total
results a zero total will be used. Incurred Losses paid or reserved
during a Profit Sharing Year shall not, for the purpose of this
Addendum I, include more than the stop loss limitation in effect for
that Profit Sharing Year as a result of a single event or any one
occurrence. With respect to any loss which exceeds such stop loss
limitation and which has not been paid or closed at the end of the
current PSY, if any adjustment of reserve or other credit shall reduce
the loss to an amount below said stop loss limitation hereinafter, and
for purposes of this subparagraph only, the term "such stop loss
limitation" shall mean the stop loss limitation in effect during the
PSY in which an incurred loss exceeds the THEN CURRENT stop loss
limitation. Provided, further, that from this point forward this same
stop loss limitation shall be the basis for all further computations
for this loss under this subparagraph in the PSY, Agent's Incurred
Losses shall be reduced only by a sum equal to the difference between
said stop loss limitation and the amount of the loss at the end of the
current PSY. No reduction in Incurred Losses shall be allowed in the
amount of that portion of any reserve adjustment or other credit by
which any loss exceeds said stop loss limitation. In addition, when
Incurred Losses are calculated for any PSY in which a loss is paid or
closed, such Incurred Losses shall be increased by that portion of any
reduction in reserve or other credit which exceeds the stop loss
limitation and for which Agent received credit in any prior PSY. In
each year, the stop loss limitation shall increase or decrease by a
percentage equal to the percentage increase or decrease in the direct
written premiums of the property and casualty industry in the United
States. The percentage increase or decrease in the amount of the stop
loss limitation shall be cumulative. The source of the industry figures
shall be the A.M. Best Company's Executive Data Service, Property and
Casualty Insurance Custom Summary B1, exclusive of the industry totals
for the fidelity and surety lines. The stop loss limitation amount of
any Profit Sharing Year will be based on figures available from the B1
Summary published for the calendar year two years prior to such Profit
Sharing Year. For example, for any Profit Sharing Year, the stop loss
limitation amount shall be increased or decreased by a percentage equal
to the percentage increase or decrease in industry direct written
premiums as compiled in the B1 Summary for the calendar year two and
three years preceding. Each year the Company shall notify the Agent of
the percentage increase or decrease as soon as practicable after the
Company receives the summary from the A.M. Best Company. However, the
amount of the stop loss limitation shall never be less than that in
effect for the first PSY. The stop loss limitation to be applied in
each PSY shall equal the greater of twenty-five percent (25%) of the
Agent's total earned premium for each PSY or the single occurrence stop
loss limitation as it shall be calculated for such PSY according to the
terms of this paragraph.
6. Incurred Loss Ratio shall be calculated by dividing Incurred Losses by
total Earned Premiums and multiplying the quotient by 100. If the
resulting percentage figure is greater than the Combined Permissible
Loss Ratio, no further Calculation will be made under this Addendum I.
7. Agent's Gross Profit Percentage shall be the difference between the
Combined Permissible Loss Ratio and the Incurred Loss Ratio.
8. Gross Profit shall be the product of total Earned Premiums and the
Gross Profit Percentage.
9. Gross Dividends Paid are those dividends paid to Agent's ALLIED/AMCO
policyholders during the PSY including adjustments for any balances
charged off by Company.
10. Net Dividends Paid shall be calculated by multiplying Gross Dividends
Paid by 0.45.
11. Net Profit shall be calculated by subtracting Net Dividends Paid from
Gross Profit.
12. Agent's Profit Share shall be that percentage of Net Profit which is
indicated by Exhibit A.
13. Agent's Profit Share shall be reduced by 8% for each and every month
during the PSY that Agent's account(s) with Company are delinquent
pursuant to the terms of the Agency Agreement referenced herein.
14. Profit Share Payable shall be calculated by subtracting any Reduction
for Delinquencies from Agent's Profit Share.
II. OTHER PROVISIONS
A. The foregoing calculations shall be made by Company for each Profit
Sharing Year as soon thereafter as is reasonably practicable.
B. Company's records shall be binding and conclusive as to the
completeness and accuracy of all information appertaining to this
Addendum I.
C. Company shall not be liable for any Profit Share Payable hereunder upon
any breach by Agent of this Addendum I or the Agency Agreement of which
it is part.
D. Agent shall make no deduction from Agent's account(s) with Company and
shall not otherwise anticipate any Profit Share Payable hereunder.
E. Agent shall incur a Deficit when Agent's Incurred Loss Ratio is greater
than the Combined Permissible Loss Ratio for any PSY. No Deficit
incurred in any PSY shall be included in the calculation of Agent's
Profit Share for any subsequent PSY. As a result thereof, (1) no
savings in any loss reserve, which is chargeable to Agent, shall be
deducted from Agent's Incurred Losses for any PSY it such loss reserve
contributed to a Deficit incurred in a prior PSY and (2) no salvage or
subrogation recovery attributable to any loss shall be deducted from
such Incurred Losses if such loss reserve contributed to a Deficit
incurred in any prior PSY.
F. Termination
1. Either party to this Addendum I may effect immediate termination
of said Addendum upon written notice to the other.
2. This Addendum I shall terminate immediately upon any termination
of the Agency Agreement of which it is a part.
3. Upon any such termination, Company shall calculate and pay any
Profit Share Payable pursuant hereto at such time as it would have
calculated and paid any such Profit Share payable, for the PSY in
which the termination is effected, had this Addendum remained in
force.
G. Agent may not assign all or any interest in this Addendum I without
Company's express, written consent thereto.
H. Company may amend this Addendum, including Exhibits and Amendments
thereto, at anytime upon mailing to Agent written notice thirty (30)
days prior to the effective date of such amendment.
I. The calculation of Agent's Profit Share hereunder shall include all
premiums, losses, and loss reserves chargeable to Agent by Company
except those applicable to flood, umbrellas, assigned risk insurance
policies, and fidelity and surety bonds.
J. Agent and Company hereby declare their mutual intent that the terms and
conditions of their Agency Agreement and those of this Addendum I
thereto shall be construed to be compatible and that, in the event of
any irreconcilable conflict between the terms of said Agency Agreement
and this Addendum I thereto, said Agency Agreement shall be deemed to
control the resolution of all such issues except those specifically
relating to Profit Sharing which shall be resolved by reference to the
terms of this Addendum I.
ACKNOWLEDGEMENT:
By /s/ Xxxx X. Xxxxx
-----------------------------------------
Xxxx X. Xxxxx, President
ALLIED Mutual Insurance Company
AMCO Insurance Company
EXHIBIT A
1990
Profit Share Percentage Table
In calculating Agent's profit share formula for the profit share year
1990, the following shall apply:
ANNUAL WRITTEN PREMIUMS PROFIT SHARE PERCENTAGE
$0 to $ 75,000 0.0%
75,001 to 102,000 5.0
102,001 to 152,000 10.0
152,001 to 205,000 12.5
205,001 to 358,000 15.0
358,001 to 562,000 17.5
562,001 to 1,071,000 20.0
1,071,001 to 1,532,000 22.5
1,532,001 to 2,042,000 25.0
2,042,001 to 2,605,000 26.25
2,605,001 to 3,334,000 27.5
3,334,001 and over 28.75
A. For the purpose of the Profit Share Percentage Table set out above, Annual
Written Premiums are gross premiums, which are written by Agent and
recorded by Company during the PSY, less any premiums on policies that are
cancelled and/or returned.
B. The Profit Share Percentage which corresponds to Agent's Annual Written
Premiums, as defined, for the PSY shall be inserted in the Formula in
paragraph I(A)(12).
C. The Annual Written Premium bracket amounts, as shown above, shall be
subject to automatic increase or decrease for the Profit Sharing Year 1991
and in each year thereafter. The Annual Written Premium bracket amounts
shall increase or decrease by a percentage equal to the percentage increase
or decrease in direct written premiums in the property and casualty
industry in the United States. The percentage increases or decreases in the
Annual Written Premium bracket amounts each year shall be cumulative.
However, the Annual Written Premium bracket amounts shall never be less
than the amounts that were in effect for the 1990 Profit Sharing Year. The
source of the industry figures shall be the A.M. Best Company's Executive
Data Service, Property and Casualty Insurance Custom Summary B1, exclusive
of the industry totals for the fidelity and surety lines. The Annual
Written Premium bracket amounts for any Profit Sharing Year will be based
on the figures available from the B1 Summary for the calendar year two
years prior to any such PSY. For example, for the 1991 Profit Sharing Year,
the Annual Written Premium Bracket Amounts shall be increased or decreased
by a percentage equal to the percentage increase or decrease in industry
direct written premiums as compiled in the B1 Summary for the calendar year
1989 over 1988. Each year the Company shall notify the Agent of the
percentage increase or decrease in the bracket amounts as soon as
practicable after the Company receives the summary from the A.M. Best
company.
D. For purposes of computation hereunder the stop loss limitation for 1990 is
$205,000.
ADDENDUM II
This Addendum II to that certain Agency Agreement which now exists
between ALLIED Mutual Insurance Company and AMCO Insurance Company
(hereinafter, collectively called Company) and the Agent designated therein
shall be attached to and become a part of said Agency Agreement effective
____________. At any time prior thereto, Agent may notify Company in writing
of Agent's rejection of this Addendum II in which case the offer of fidelity
and surety bond Profit Sharing herein contained shall be deemed to be
withdrawn. Upon any such rejection by Agent, said Agency Agreement shall
continue in force until terminated by either Company or Agent pursuant to the
terms and conditions thereof, and there shall exist no agreement whatsoever
between Company and Agent for fidelity and surety bond Profit Sharing.
WITNESSETH:
In consideration of the continued existence of said Agency Agreement and
the mutual covenants contained herein, Company and Agent hereby amend said
Agency Agreement to include the following terms and conditions which constitute
and define this Profit Sharing Addendum II (fidelity and surety bonds).
I. PROFIT SHARING. In addition to the commissions to be paid to Agent under
the terms of said Agency Agreement and to compensate Agent for exercising
skill, caution and diligence in the selection of risks insured by the
Company, the Company will pay to Agent a "Profit Share" (as hereinafter
defined and calculated) based on "Net Profit" (as hereinafter defined)
realized by the Company on fidelity and surety bonds written by Agent. The
Profit Share shall be calculated using the following Formula for each
"Profit Sharing Year" (as hereinafter defined).
A. Formula. As of the end of each Profit Sharing Year (hereinafter "PSY"),
which shall be the accounting period beginning January 1 and ending on
December 31 in the same calendar year, Net Profit or Loss for fidelity
and surety bonds shall be calculated as follows:
1. Earned Premiums.................................................................$
--------------
2. Incurred Losses (No less than zero).............................................$
--------------
3. Incurred Losses Percentage (#2 DIVIDED BY #l x 100).............................. %
--------------
4. Gross Profit Percentage (25% - #3)............................................... %
--------------
5. Gross Profit (#4 x #1) less agent's balances charged off........................$
--------------
6. Agent's Profit Share (_________ % of #5)........................................$
--------------
7. Reduction for Delinquencies (______ % of #6)....................................$
--------------
8. Profit Share Payable (#6 - #7)..................................................$
--------------
B. Formula Definitions. Each numbered subparagraph hereunder explains or
defines that corresponding numbered subparagraph in the Formula set out
in paragraph I(A) of this Addendum II.
1. Earned Premiums are defined as Written Premiums for fidelity and
surety bonds produced by Agent during the Profit Sharing Year
minus the Unearned Premiums as of the end of the same year plus
Unearned Premiums as of the end of the prior year.
2. Incurred Losses are defined as net direct losses paid on fidelity
and surety bonds during the Profit Sharing Year plus reserves for
unpaid losses as of the end of the same year and minus reserves
for unpaid losses as of the end of the prior year. IF A NEGATIVE
TOTAL RESULTS, A ZERO TOTAL WILL BE USED.
3. Incurred Losses Percentage is calculated by dividing Incurred
Losses by Earned Premiums and by multiplying the quotient by 100.
If such percentage is greater than 25% NO FURTHER CALCULATION WILL
BE MADE.
4. Gross Profit Percentage is calculated by subtracting the Incurred
Losses Percentage from 25%.
5. Gross Profit shall be the product of Earned Premiums and the Gross
Profit Percentage, less any agent's balances charged off during
the PSY.
6. Agent's Profit Shall be that percentage of Net Profit which is
indicated by Exhibit A.
7. Agent's Profit Share shall be reduced by 8% for each and every
month during the PSY that Agent's account(s)with Company are
delinquent pursuant to the terms of the Agency Agreement
referenced herein.
8. The Profit Share Payable shall be calculated by subtracting any
Reduction for Delinquencies from Agent's Profit Share.
II. OTHER PROVISIONS
A. The foregoing calculations shall be made by Company for each Profit
Sharing Year as soon thereafter as is reasonably practicable.
B. Company's records shall be binding and conclusive as to the
completeness and accuracy of all information appertaining to this
Addendum II.
C. Company shall not be liable for any Profit Share Payable hereunder upon
any breach by Agent of this Addendum II or the Agency Agreement of
which it is a part.
D. Agent shall make no deduction from Agent's account(s) with Company and
shall not otherwise anticipate any Profit Share Payable hereunder.
E. Agent shall incur a Deficit when Agent's Incurred Loss Percentage is
greater than 25%. No Deficit incurred in any PSY shall be included in
the calculation of Agent's Profit Share for any subsequent PSY. As a
result thereof, (1) no savings in any loss reserve, which is chargeable
to Agent, shall be deducted from Agent's Incurred Losses for any PSY if
such loss reserve contributed to a Deficit incurred in a prior PSY, and
(2) no salvage or subrogation recovery attributable to any loss shall
be deducted from such Incurred Losses if such loss reserve contributed
to a Deficit incurred in any prior PSY.
F. Termination
1. Either party to this Addendum II may effect immediate termination
of said Addendum upon written notice to the other.
2. This Addendum II shall terminate immediately upon any termination
of the Agency Agreement of which it is a part.
3. Upon any such termination, Company shall calculate and pay any
Profit Share Payable pursuant hereto at such time as it would have
calculated and paid any such Profit Share Payable, for the PSY in
which the termination is effected, had this Addendum remained in
force.
G. Agent may not assign all or any interest in this Addendum III without
Company's express, written consent thereto.
H. Company may amend this Addendum II including Exhibits and Amendments
thereto, at any time upon mailing to Agent written notice thirty (30)
days prior to the effective date of such amendment.
I. Agent and Company hereby declare their mutual intent that the terms and
conditions of their Agency Agreement and those of this Addendum II
thereto shall be construed to be compatible and that, in the event of
any irreconcilable conflict between the terms of said Agency Agreement
and this Addendum II thereto, said Agency Agreement shall be deemed to
control the resolution of all such issues except those specifically
relating to fidelity and surety bond Profit Sharing which shall be
resolved by reference to these terms of this Addendum II.
ACKNOWLEDGEMENT:
By /s/ Xxxx X. Xxxxx
-----------------------------------------
Xxxx X. Xxxxx, President
ALLIED Mutual Insurance Company
AMCO Insurance Company
EXHIBIT A
1990
Profit Share Percentage Table
In calculating Agent's profit share formula for the profit share year
1990, the following shall apply:
ANNUAL WRITTEN PREMIUMS PROFIT SHARE PERCENTAGE
$0 to $1,500 0.0%
1,501 to 2,012 10.0
2,013 to 5,027 12.5
5,028 to 10,053 15.0
10,054 to 20,106 17.5
20,107 to 30,154 20.0
30,155 to 40,207 22.5
40,208 and over 25.0
NO BONUS WILL BE PAID WHERE THE BONUS AMOUNT EARNED IS LESS THAN $10.00.
A. For the purpose of the Profit Share Percentage Table set out above, Annual
Written Premiums are gross premiums, which are written by Agent and
recorded by Company during the PSY, less any premiums on bonds that are
cancelled and/or returned.
B. The Profit Share Percentage which corresponds to Agent's Annual Written
Premiums, as defined, for the PSY shall be inserted in the Formula in
paragraph I(A)(6).
C. The Annual Written Premium bracket amounts, as shown above, shall be
subject to automatic increase or decrease for the Profit Sharing Year 1991
and in each year thereafter. The Annual Written Premium bracket amounts
shall increase or decrease by a percentage equal to the percentage increase
or decrease in direct written premiums in the fidelity and surety bond
industry in the United States. The percentage increase or decrease in the
Annual Written Premium bracket amounts each year shall be cumulative.
However, the Annual Written Premium bracket amounts shall never be less
than the amounts that were in effect for the 1990 Profit Sharing Year. The
source of the industry figures shall be the A.M. Best Company's Executive
Data Service, Property and Casualty Insurance Custom Summary B1, figures
for fidelity and surety lines only. The Annual Written Premium bracket
amounts for any Profit Sharing Year will be based on the figures available
from the B1 Summary for the calendar year two years prior to any such PSY.
For example, for the 1991 Profit Sharing Year, the Annual Written Premium
bracket amounts shall be increased or decreased by a percentage equal to
the percentage increase or decrease in the fidelity and surety bond
industry direct written premiums as compiled in the B1 Summary for the
calendar year 1989 over 1988. Each year the Company shall notify the Agent
of the percentage increase or decrease in the bracket amounts as soon as
practicable after the Company receives the summary from the A.M. Best
company.
