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to your account as of the date of termination;
whichever is greater, or
(2) thirty percent (30%) 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 those
“personally produced” policies designated in (1) and
credited to your account as of the date of termination.
State Farm Life Insurance Company-
An amount equal to the same compensation for the second
and subsequent policy years as would have been due and
payable to you for the first five years following the
date of termination on all State Farm life policies
personally written by you or assigned to you by the
Company for compensation, under the terms of the
applicable Schedule of Payments attached hereto, if
this Agreement had not been terminated.
State Farm and petitioner did not negotiate the amount or
conditions of the termination payment. State Farm agreed to pay
petitioner a termination payment over either a 2- or 5-year
period.
Section V of the agreement provides for an extended
termination payment if petitioner worked for State Farm for at
least 20 years, of which 10 years were consecutive. The extended
termination payment would begin 61 months after termination and
continue until petitioner’s death. The extended termination
payment is also based on policies personally produced by
petitioner during his last 12 months as an agent for State Farm.
State Farm paid commissions for new business personally
written by the agent as a percentage of the first policy year
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Last modified: May 25, 2011