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... , rather than one producer, and the agency has a better chance of keeping the account should the producer depart. We define recurring expenses as expenses necessary to support the generation and retention of insurance related income. We excluded such unnecessary expenses as country club dues, automobile leases for non-employee family members, and season tickets to sporting events. We also exclude non-recurring expenses. These might include professional fees for changes to an employee benefit program, one-time purchases of major office equipment, or producer commissions paid for non-recurring Life income. TRACKING ... EXPENSES Because adjusting for unnecessary and non-recurring expense items benefits owners when valuing an agency, keeping track of these items is critical. Some expenses, such as country club dues and season tickets, are easy to track and quantify. Other expenses, such as flying first class or staying in luxury hotels, will be more difficult to quantify. Other expense items that you should track include dues, subscriptions, charitable contributions, professional fees, and outside services. These items often contain one-time business expenses. Another major area of adjustment is ... the nature of these items and adjustments will help owners better understand the value of their agencies. We define recurring revenues as commission and fee revenue related to insurance sales and services. It includes Property/Casualty, Group Benefits, and Life commissions, fee income, contingent income, and investment income. Revenue that's not recurring includes first year Life commissions, fees for one-time consulting projects, or bonus income for a book rollover. Commission from brokered business is another example; the outside producer who places the business, not the agency ...

... expenses as country club dues, automobile leases for non-employee family memb...

... bonus or profit-sharing commissions. Fees received by [Agency] in lieu of or in addition to commissions (excluding so-called late charges or interest on unpaid premiums) shall be deemed to be commissions. [Agency] shall provide [Employee] with the use of an automobile owned or leased by [Agency] . [Agency] shall pay all reasonable expenses of operation and maintenance thereof, subject to certain reimbursement as provided hereinafter. [Employee] shall reimburse [Agency] for ten percent (10%) of all reasonable operating ... which shall be defined as fuel and normal periodic maintenance charges. Specifically excluded from said costs are the costs of insurance, registration, lease or purchase payments and repairs or maintenance charges other than the normal periodic maintenance required by the car manufacturer's warranty provisions. Said ten percent (10%) reimbursement of costs is to be made when and as billed by [Agency] and represents reimbursement to [Agency] for that portion of the time when said vehicle may be used for [Employee] 's personal use, however, ... for other insurance brokers. The average net annual commissions shall be defined as gross annual commissions (on account of the writing or renewal of property and casualty insurance business thereby intending to exclude bonding business) less return commissions paid or allowed as credit exclusive of any so-called contingent, bonus or profit sharing commissions Installment billings on policies written for a period in excess of one year shall be deemed to be renewals for purposes of this computation and commissions on premiums prepaid for a period in excess of one year shall be included, but prorated ...

...e [Employee] with the use of an automobile owned or leased by [Agency]. [Agenc...