Fulmont Mutual Insurance Company - Return to Home Page

New Agent Section | Return to New Agent Section Main Page 
Fulmont Mutual Insurance Company

Commission Information  

Contingent Commission Program

Contingent Commission Program
Revision effective 01/01/02 

The effective date for the new Contingent Commission calculation is January 1, 2002.

Normally, the underwriting profit of the Company will be the basis for determining whether a Contingent Commission will be paid. However, at the discretion of Management, a Contingent Commission may be awarded in the absence of an underwriting profit.

If a Contingent Commission is paid, the calculation will be based on the individual agent’s “pure profit”. “Pure profit” will equal Earned Premium minus Management expenses, incurred losses, LAE and unallocated expenses.

Management expenses will include the subject agent’s actual commission. Please note that those agents who receive an average higher commission may experience slightly higher management expense ratios. A higher commission is normally the result of net retention bonus, Contingent Commission, High Tech, extra commission for a rollover, etc.

At the discretion of management, agents who are eligible for a Contingent Commission may receive up to 10% of their pure profit. Agents who qualify as Super Agents may receive up to 20% of their pure profit.

The stop loss of $100,000. per loss on a yearly basis will remain in effect. However, if an open loss is increased in succeeding years there may be up to an additional $100,000. stop loss for each of the succeeding years the loss was increased.

Items in the program that will remain the same:

Premium Base:
The premium base for the Contingent Commission Program will be Earned Premium of $35,000.

Number of Years in Contingent Commission Calculation:
One year, being January 1 through December 31, will be used in the calculation.
Agents grand fathered under the old contract as of April 13, 1982 will be paid for Earned Premiums of $20,000. to $34,999. These agents are not eligible for the Bonus Program until their earned premium is $35,000. The Contingent Commission rate will be paid at half of the commission rate designated for the subject year CC program.

Bonus Program:
If the Earned Premium for the current year is at least 10% more than the previous year, 1% additional commission times Earned Premium may be paid. Please note that rollover business will not be included in the bonus program calculation. The bonus program will apply only to agents eligible and qualifying for the Contingent Commission Program.

Contingent Commission Reduction:
If the Earned Premium for the current year is more than 5% LESS THAN the previous year, 1% commission times Earned Premium may be subtracted from the Contingent Commission check. This applies only to agents qualifying for the Contingent Commission Program.

[ Return to Top of Page ]

Retention Bonus Program
Revised 2002


The Bonus Retention program is designed to be advantageous to both the Agent and the Company. Agents will be paid an additional commission for retaining their policies with the Company from year to year. For the Agent, it is an incentive to obtain additional commission. For the Company, there are three objectives:

  1. To enhance the marketing of our Company; 
  2. To maintain and/or increase written premium; 
  3. To increase profitability.

This program was initiated on 9/30/91 with a minimum written premium requirement of $20,000. At this time, we are encouraging our agency force to grow with us and are setting the goal at a higher level of $35,000. minimum written premium.


  • Agent must be under contract with Fulmont. 
  • Agent must have a minimum written premium of $35,000
  • Brokers and Director Agents are not eligible. 

Period Covered:

  • One full year
  • Effective 10/1 to 9/30

Basis for Determining Retention:

By individual policy and written premium; for the purpose of this program only, written premium is defined as the annualized premium. A detailed report listing every individual policy and written premium recorded on the books as of 9/30 will be prepared for each eligible agent. The report will include the total number of policies and the total written premium.

A similar report will be prepared each subsequent year.

We will produce a listing of all policies written during the period of 10/31 to 9/30 with the exception of new business written during that period. 

Only those individual policies (or renewal thereof) that have been retained from one year to the next will be considered eligible in the calculation for additional commission.

The total written premium on the policies that are retained from one year to the next will be divided into the written premium from the previous 9/30 year to obtain a percentage of retention.

The agent is eligible for additional commission under this program if the premium retained at current year (9/30) equals at least 90% of the premium at previous year (9/30). 

Additional Commission:

The additional commission percentage will be calculated by applying the applicable percentage and multiplying it by the written premium of the retained business. Please note this additional commission does not apply to the agent's total written premium, only the written premium of the retained business. 

Commission Percentages Are:

  • 90% retention - 1% additional commission

  • 93% retention - 2% additional commission 

  • 96% retention - 3% additional commission 

Bonus Retention Revision #1:

The additional commission will be paid within 45 days from September 30. It will normally be paid by automated deposit to the agent’s designated account. It will be a separate entry from the regular monthly commission automated deposit.

Data Processing Reports:

  • A detailed Listing of Individual Policies and Subject Premium as of September 30 will be generated and available for your review on your web page.

  • A detailed Listing of Policies Retained, including subject written premium retained, will be generated and available for your review on your web page.

  • Your Retention Bonus Commission Calculation will be generated and available or your review on your web page. 

[ Return to Top of Page ]

New Agent Section:
New Agent Section Main Page | Policy Types | Commission Information  
Meet Our Marketing Team

For further information regarding our policies, send e-mail to
info@fulmontmutual.com, or write to us at:
Fulmont Mutual Insurance Company
P.O. Box 487, Johnstown, NY 12095-0487

Copyright Fulmont Mutual Insurance Company. All rights reserved.
This web site was developed by Empire Web Pages on June 07, 1997.
This page was most recently updated on June 06, 2018.