Our program rewards you for the block of business you maintain with The Standard, as well as for placing new clients with us. As outlined in the chart below, the Persistency Bonus increases as you retain and grow your in force premium with us.
Note: Existing business that you maintain with our sister company will be combined with your in force business with The Standard Life Insurance Company of New York for the purpose of calculating your bonus. However, separate checks will be drawn from each company based on the bonus calculations.
12/31/03 In Force Premium
Block Retention 91.0-94.9%
Block Retention 95.0-98.9%
Block Retention 99.0+%
New Business Bonus Qualification Required
$100,000
.60%
.70%
.80%
Yes
$250,000
.60%
.70%
.80%
No
$500,000
.75%
.85%
.95%
No
$1,000,000
.90%
1.00%
1.10%
No
$2,000,000+
1.05%
1.15%
1.25%
No
Features
Eligibility: A minimum of three Life and/or LTD cases in force on December 31, 2004 must remain in force on December 31, 2005 and assigned to you as the producer of record during the period (case eligibility is determined by The Standard). Voluntary coverages do not qualify to meet these eligibility requirements. Persistency Bonus includes only fully insured group cases on which The Standard is paying commissions.
Payment Frequency: The Persistency Bonus is paid annually.
Premium Credits: Premiums are credited at 100 percent for LTD, STD, Life, AD&D, Voluntary LTD, Voluntary STD, State Disability Insurance and Voluntary Life. Premiums are credited at 50 percent for Dental. When sold with pre-existing Basic Life coverage, Additional Life and Dependents Life receive 100 percent
premium credit.
Incentive for Increased Business: The higher the block retention and premium, the higher the Persistency Bonus. Our program recognizes growth of your block of premiums due to 1) composition changes, 2) rate adjustments and 3) retention of cases. Block retention is measured as:
(Premium in force on 12/31/05 excluding 2005 new sales) ÷ (Premium in force on 12/31/04)
Exclusions: Cases that transfer from a producer and are retained by The Standard are excluded from the Persistency Bonus calculation but included in the Block Retention calculation. Cases that transfer to a producer during the year will not be included in either Block Retention or Bonus calculations for that year. ASO, ATP, Select Claim and
non-commissioned plans are excluded.
Persistency Bonus Cap: The amount of Persistency Bonus paid for each line of coverage is capped at one times our most current level-graded commission scale.
