- 8 -
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.
Page: 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