Warren L. Baker, Jr. and Dorris J. Baker - Page 8




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          termination of the agreement or those that had been in force for            
          the 12 months preceding termination.4  The formulas for the                 
          amount of termination payment are as follows:                               
               State Farm Mutual Automobile Insurance Company * * *                   
               the lesser of (1) or (2)-                                              
               (1) twenty percent (20%) of the service compensation on                
               “personally produced” policies, you earned under the                   
               Schedule of Payments for Other than Health Insurance                   
               Policies in the twelve (12) preceding months, or twenty                
               percent (20%) of the service compensation on                           
               “personally produced” policies credited to your                        
               account, as of the date of termination, which remain in                
               force in the same state, during the first twelve (12)                  
               months following the date of termination; whichever is                 
               greater, or                                                            
               (2) thirty percent (30%) of the service compensation on                
               “personally produced” policies credited to your account                
               as of the date of termination, which remain in force in                
               the same state during the first twelve (12) months                     
               following the date of termination.                                     
               State Farm Fire and Casualty Company and State Farm                    
               General Insurance Company * * * the lesser of (1) or                   
               (2)-                                                                   
               (1) twenty percent (20%) of the commissions you were                   
               paid on “personally produced” policies for those lines                 
               of insurance * * * of the applicable Schedule of                       
               Payments, in the twelve (12) preceding months, or                      
               twenty percent (20%) of the commissions on “personally                 
               produced” renewal premiums you would have been paid                    
               under the applicable Schedule of Payments, if this                     
               Agreement had not been terminated, in the twelve (12)                  
               months following the date of termination on “personally                
               produced” policies which remain in the same state, for                 
               those lines of insurance designated above and credited                 


               4   It is not clear from the record whether the termination            
          payment that petitioner received was calculated based upon                  
          policies that remained in force after termination or instead had            
          been in force for the 12 months preceding termination.  These               
          facts have no bearing on our decision.                                      





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