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...Floater IX. Commercial General Liability X. Commercial Crime XI. Umbrella Liability XII. Premium Summary XIII. Acco...MBRELLA Limit of Liability Premium Limit of Liability Premium ENERGY...

...rcial, Contractors, Professional Liability, or some other type of business is ...e of business (such as professional liability). Profit centers can be set up f...

... will go away. Call on the entire agency team for assistance. A profit-improvement program won't work unless all employees understand the reasons for instituting the program and the methods to be used in implementation. Every person in the agency must be sales, service, and expense-conscious to make progress in increasing sales and controlling costs. Use these formulas to help determine the financial performance of your agency: Required information Accounts Receivable (current and aged- for instance 15, 30, or 45 days old) Cash Total Liabilities Current Liabilities Total Premiums Net Written Premium Net Earnings Total Assets Current Assets Owners Equity Net Worth Tangible Net Worth Total Revenues Intangible Assets Stockholders Equity Marginal Income Rate (commission revenue and variable costs divided by premium volume) Total Fixed Cost Office Costs Sales Costs Total Number of Policies Total Number of ... FINANCIAL ANALYSIS An agency's long-term survival depends totally on profit maximization — and profit maximization depends on a number of variables. To achieve profit maximization, you need to must mesh all variables into the most efficient arrangement, which includes a balance between effective production and financial management. We won't deal with production here, but financial management should be defined simply as" the effective handling of an agency's assets, liabilities, income, and expenses." It's an integral part of planning, organizing, directing, and controlling all aspects of the agency. This guide refers to external standards — that is, the averages developed by the industry or the results attained by the most effective agencies. You can take your pick to set goals for your agency, but in no event should your goals be lower than ...

... that of the Buyer. A creative security arrangement is included, involving a security-escrowed broker-of-record letter as set forth in Exhibit G. AGREEMENT FOR PURCHASE AND SALE OF ABLE INSURANCE AGENCY Table of Contents Section/Paragraph 1. Parties 2. Recitals 2.1 Status of Seller 2.2 Status of Buyer 2.3 Status of Able 2.4 Status of Dalton 2.5 Purpose 2.6 Move 3. Purchase and Sale 3.1 Insurance Accounts 3.1.1 Valuation 3.1.2 Risk of Loss 3.2 All Goodwill of the Seller 3.3 Name Change 3.4 Personal Property 3.5 Commissions Receivable 3.5.1 Schools Exception 3.5.2 Repayment 3.6 Contingency Commissions 3.7 Assumption of Liabilities 4. Payment/Terms/Security 4.1 Purchase Price 4.2 Allocation 4.3 Terms 4.4 Security- Assets 4.5 Assignment, Replacement Property 4.6 Default 4.7 Security-Escrowed Letter 4.8 Cross-Default 5. Closing 5.1 Place and Time ... Delivery of Documents and Consideration 5.3 Adjustments 6. Seller's Representations and Covenants 6.1 Representations and Warranties 6.2 Covenants 6.2.1 No Interruption in Business 6.2.2 Liabilities 6.2.3 Delivery of Receipts 6.2.4 Cessation 6.2.5 Ownership Indemnity 6.2.6 E&O Coverage and Indemnification 6.2.7 Carriers/Transition 7. Buyer's Representations and Covenants 7.1 Status of Buyer 7.2 Covenants 7.2.1 Non-Disclosure 7.2.2 E & O Coverage 8. Non-Compete 9. Contingencies 9.1 Representations, Warranties and Covenants True 9.2 Exhibits 10. Dispute Resolution 10.1 All Disputes 10.1.1 Alternative 10.1.2 Equitable Relief 10.2 Notice of Arbitration 10.3 Authority 10.4 Costs 11. Miscellaneous 11.1 Notices 11.2 Waivers and Extension 11.3 Expenses 11.4 Amendment 11.5 Entire Agreement 11.6 Applicable Law/Venue 11.7 Headings 11.8 Counterparts 11.9 Successors, Assigns, and Subsidiaries 11.10 Duration of Warranties 11.11 Necessary ...

...hnique addresses include Product Liability (including products recall), Pollution Liability, Errors and Omissions Liability, Workers' Compensation, and high-de... current values. Protection of liability reserves from appropriation. Thi...

...l as possible about property and liability exposures, claim frequency and type...

...ent for certain services. Thus, accountants who were negligent in rendering a... only have the ability to establish liability against its consultant's lawyer...

...o visit the account personally. Liability and Common Claims Liability is a major exposure. Housekeeping a... special events that require higher liability. Many time element coverages con...

...rkers Compensation and Employers Liability policy.' With employers eager to as... coverage like Employment Practices Liability (EPL) insurance. A company's emp...

... deficit (or loss, meaning that expenses are exceeding revenues), the problem is not financial. The cash-flow shortfall is only a symptom of an operating problem or a combination of operating problems. Thus, a cash loan to the agency will not make the firm "financially healthy" until the operating problem is identified and corrected. All too often, an agency with low liquidity, high overdue accounts receivables, unmanageable debt service, and a shortfall of cash-flow profits is considered "financially problematic." The key to effective agency-financial analysis is to use financial information to identify operating problems, design a game plan to correct these problems, and then use the financial statements to monitor the progress of the action plan. TOP 10 QUICK FINANCIAL REVIEW COMPONENTS When developing a financial analysis of an independent agency ... ) $ Total Targeted Return = $ B.Total Actual Return: 1.Total compensation paid to owners = $ 2.Add: Reported pre-tax profit = $ Total Actual Return = $ C. Shortfall Or Excess Return 1.Total targeted return = $ 2.Less: Actual return = $ 3.Shortfall or Excess Return = $ 5. ABILITY TO COVER DEBT SERVICE If an agency is not developing sufficient cash flow to cover debt-service payments on outstanding liabilities and notes, it won't be around long. In too many instances, agency owners assume debt in buying out a partner or another agency without realizing the full impact debt service will have on cash flow. You can use Figure 2 to estimate an agency's ability to cover its debt service. If item 5 is greater than item 4, a cash-flow deficit will exist. To be conservative and ...