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Dealer Profit Participation |
- Dealer must generate a minimum of 180 (average 15 per month) service contracts annually.
- A separate Dealer premium reserve account is establlished with the insurance premium generated from dealer's service contract sales. (Program results are not pooled with other dealer business.)
- Premium begins earning interest on first day of deposit into your individual dealer premium reserve bank account.
- Investment income is compounded monthly.
- Producer must be on the program for at least 12 months before any distrubution of profit sharing benefits.
- Underwriting profits paid on contracts for fully expired policy year terms.
- Eligible earned investment income paid every 12th month, 90 days following a calendar year end. (If dealer's loss ratio is below 90% of the premium reserve fund.)
- Investment income not exposed to future claims losses as long as loss ratio in Dealer's Account is less than 90% of reserve premiums.
- Checks paid to individual, dealership, or management company.
- No dealer up-front fees or investments.
- No dealership liability due to losses in excess of the loss reserves.
- No loss of profit sharing if dealer discontinues program.
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