- 3 -
Company; (b) the agent must have represented the Company for at
least 5 years; (c) the agent must have a specified number of
policies in force at the time of termination; and (d) the agent
must not "associate himself in any sales or sales management
capacity with another insurer engaged in writing any of the kinds
of insurance written by the company".
If an agent qualifies to receive extended earnings, the
amount of those earnings is a specified percentage of the renewal
service fees3 which were paid to the agent during his final 6 or
12 months prior to termination. The percentage increases with
the agent's consecutive years of service. The extended earnings
are payable under the Agreement regardless of the cause of termi-
nation and regardless of the age of the agent at the time of
termination. In the event of an agent's death prior to the
complete payout of the extended earnings, his legal representa-
tives are entitled to receive the earnings which the agent would
have received had he not died.
Petitioner needed to be a licensed insurance agent in order
to sell insurance for the Companies. Petitioner was responsible
for all business expenses involved in operating his insurance
agency. The Companies owned the policies, endorsements, policy
records, manuals, materials, and supplies used by petitioner to
3Renewal service fees are payments made to an agent as a
service fee when an insurance policy is renewed and consist of a
percentage of the premiums paid by the insured.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011