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PIIB
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Competitor #1
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Competitor # 2
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Accessing companies
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100% direct access to markets
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Direct access to some markets and central marketing for others
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Central Marketing for all companies
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Cost
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$850 monthly for all affiliates
(same for last 10 years)
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Fee plus % of commission
Or
Sliding scale fees based on volume.
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% of commissions
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Commissions
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100% paid to agency most directly by companies.
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Commission reduced by cluster
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Commissions paid to cluster, cluster pays agency.
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Profit Sharing
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90% paid to agencies.
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75% paid to agencies
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No profit sharing paid to agencies.
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Profit Sharing Payment Timing
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Contract requires 90% payment by April 1st.
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Bonus Commissions – new business bonuses.
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90% paid to agencies based on their new business.
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75% paid to agencies.
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None paid to agencies.
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Ownership of affiliates
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PIIB takes no ownership position in the agency or the agency’s book.
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A percent of agency is owned by the cluster.
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Agency must offer to sell book when leaving.
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Termination notice
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3 months notice.
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Notice requires purchasing the ownership back from the cluster.
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10 days notice with 50% of commissions forfeited immediately after termination
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Termination Penalties
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50% of commission on business not moved 6 months after notice of termination.
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Agency prohibited from seeking direct appointments with clusters markets for 2 years
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Agency continues to pay fees for two years on business written by companies represented by
Clusters
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Cluster ownership
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100% owned by fellow affiliates
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Partially owned by Insurance Company
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Owned by a retail Insurance Agency
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Retention
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Only 1 agency has voluntarily left PIIB is the last 10 years
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