- 6 - Petitioner’s compensation was based on a percentage of the net premiums. The compensation varied by the type of insurance, such as automobile and homeowner’s. Petitioner was also assigned policies for which he received a smaller commission than those policies he personally produced. State Farm assigned existing policies to petitioner because the policyholders moved to the geographic location covered by his agency. Similarly, when policyholders covered by petitioner moved to a different geographic location, the policies were assigned to another agent in that geographic area. Petitioner did not compensate other agents for policies he assumed, and he did not receive payments for policies assigned to other agents. The commissions payable for assigned policies are provided for in the schedule of payments attached to the agreement in relevant part as follows: an amount equal to 66-2/3 percent of the graded commission scale in Section I, provided, however, no commission shall be payable to you on any premium collections on business credited to your account from the account of an agent whose agreement with * * * [State Farm] has been terminated, or as a result of an agreement between an agent and * * * [State Farm] pursuant to the applicable paragraph of Section IV of * * * [an agreement], until a one-year period has elapsed following the date of such termination, except as provided for in paragraph IV-B-2 of this Schedule of Payments. b. Termination Section III of the agreement addresses termination. Either party could terminate the agreement by written notice. ThePage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011