Mobilitas sells its fleet automobile property and casualty insurance product through insurance agents and brokers, commonly called “Producers.” The compensation paid to Producers is designed to encourage them to sell our product, place profitable business with us and provide services to us and our policyholders.
Producers are generally paid a Base Commission for the sale and service of policies placed with Mobilitas. The base commission is a fixed percentage (of the policy premium) or a fixed amount per policy set prior to the sale (effective date) of the policy. The commission may vary depending on certain factors including whether the policy is a new or renewal policy. In some cases, the percentages or amount may be negotiated on a transaction by transaction basis, and may vary by Producer based on criteria such as the Producer’s past performance and the expected value of the Producer’s business going forward.
Certain Producers may be eligible for Contingent Commission in addition to Base Commission. Contingent Commission is usually a particular percent of the premium written during a preceding performance period or a particular sum that is based upon a Producer’s ability to meet certain production, growth, profitability or other performance objectives established by us for that preceding period. As such, eligibility for, and the amount of, Contingent Commission cannot be determined until after the sale of policies that occur over a given period of time. Contingent Commission is generally paid separately from Base Commission on an annual or other periodic basis.