Beruflich Dokumente
Kultur Dokumente
Compensation
For Managing General Agencies (MGA)
and National Accounts
Effective Date:
May 1, 2009
Wave 19
432E (2009/05/01)
TABLE OF CONTENTS
INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2
FIRST YEAR MGA COMPENSATION QUALIFICATION AND PAYMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3
COMPENSATION RATE TABLES FOR UNIVERSAL LIFE PLANS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4
SUPPLEMENTARY BENEFITS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5
DEFINITIONS FOR UNIVERSAL LIFE PLANS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6
CHARGEBACK RULES FOR UNIVERSAL LIFE PLANS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7
COMPENSATION RATE TABLES FOR TRADITIONAL LIFE AND CRITICAL ILLNESS PLANS . . . . . . . . . . . . . . . . . . . . . . . . .9
DEFINITIONS FOR TRADITIONAL LIFE AND CRITICAL ILLNESS PLANS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10
CHARGEBACK RULES FOR TRADITIONAL LIFE AND CRITICAL ILLNESS PLANS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11
COMPENSATION RATE TABLES FOR SINGLE PREMIUM IMMEDIATE ANNUITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12
COMPENSATION RULES AND CONDITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13
1. INTERNAL REPLACEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13
2. COMPLETE AND PARTIAL CONVERSIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13
3. POLICIES ISSUED ON ADVISORS AND MEMBERS OF THE ADVISORS FAMILY . . . . . . . . . . . . . . . . . . . . . .14
4. JUMBO CASE RULES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14
5. COMPENSATION ON REFUNDED PREMIUMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15
6. REINSTATEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15
7. POLICY CHANGES AFTER ISSUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15
8. SERVICE FEE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15
9. VESTING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15
10. CHARGEBACKS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15
11. CONTRACT OPTIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16
12. MGA OF RECORD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16
13. RETURN OF PREMIUM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16
14. RETURN OF EXCESS OVERRIDE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16
15. BUSINESS CONDUCT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16
INTRODUCTION
BMO Life Assurance Company (BMO Insurance) is pleased to present you with a consolidated summary of the
compensation plans of our individual life and critical illness insurance portfolio. The schedule is an attachment to and
forms part of the Managing General Agency (MGA) Agreement and the National Account Agreement. (For the purposes
of this schedule, the terms "representative", "advisor" and "agent" are used interchangeably as are the terms
managing general agency, MGA and national account.)
This booklet contains information on compensation for the following plans:
We have described the terms of the compensation schedules in an easy-to-understand format. If you have any
questions about the contents, please call the BMO Insurance Regional Sales Office closest to you.
The compensation schedules described in this Guide are for the insurance plans we offer for sale as of the
effective date of this Guide. Prior compensation schedules will continue to apply to policies (or coverages)
submitted at the time such prior schedules were in effect.
While we have made every effort to ensure the accuracy of the contents, we reserve the right to correct any
errors and/or omissions contained herein.
CHANGES EFFECTIVE
February 23, 2009
Revised Chargeback Rules for Universal Life Plans
Override Chargeback due to Reduction of Coverage
April 1, 2009
AIG Life Insurance Company of Canadas name was changed to BMO Life Assurance Company by Amended
Letters Patent, effective April 1, 2009.
May 1, 2009
Revised Advisor Commission Rate Table for Traditional Life and Critical Illness Plans
Preferred Term 20 FYC is changed
Revised Chargeback Rules for Universal Life Plans
Over Advanced FYO Recapture Credit
The Company reserves the right to modify this schedule when cases exceed specified limits or involve
Replacements or Conversions.
Table of Contents
FIRST YEAR
OVERRIDE RATE
GROWTH
BONUS
MARKETING
ALLOWANCE
$249,999 or less
From $250,000 to $499,999
From $500,000 to $749,999
From $750,000 to $999,999
From $1,000,000 to $1,499,999
If $1,500,000 and over
190%
N/A
N/A
200%
N/A
N/A
205%
N/A
5%
207.5%
N/A
5%
210%
Up to 5%
5%
215%
Up to 5%
5%
Effective January 1st of each year, the MGA First Year Override Rate will be set at a rate of 190% if the MGAs prior
Calendar Year Settled 1st Year Commissionable Target Premium was less than $250,000. A rate of 200% will be set if
the MGAs prior Calendar Year Settled 1st Year Commissionable Target Premium was from $250,000 to $499,999, or a
rate of 205% if the MGAs prior Calendar Year Settled 1st Year Commissionable Target Premium was $500,000 or greater.
An annual payment will be made in January of the following year if the total Production Level achieved merits a First
Year Override Rate that exceeds the First Year Override Rate actually paid. The First Year Override percentage rate of
this payment will be the difference between the First Year Override Rate for which the MGA qualified and the First Year
Override Rate actually paid throughout the year. The annual payment will be calculated on the Net First Year
Commissions paid on policies sold by the MGAs advisors in the prior calendar year.
An annual payment representing Growth Bonus will be made in January of the following year when the MGAs Prior
Calendar Year Settled 1st Year Commissionable Target Premium was a minimum of $1,000,000 and exceeded the
previous year in excess of 10%. The Growth Bonus is calculated at a rate of 1% for each percentage of that growth
over 10% up to the Maximum based upon the MGAs Prior Calendar Year Settled 1st Year Commissionable Target
Premium. The annual payment will be calculated on the Net First Year Commissions paid on policies sold by the MGAs
advisors in the prior calendar year.
An annual Marketing Allowance will be established if the MGAs prior Calendar Year Settled 1st Year Commissionable
Target Premium is $500,000 or greater. The Marketing Allowance will be calculated on the Net First Year Commissions
paid on policies sold by the MGAs advisors in the calendar year. Payment of the Marketing Allowance must receive
prior approval of the expenditure by BMO Insurance Sales Management and submission of acceptable receipts.
Procedural details of acceptable expenditures and receipts will be sent annually to each MGA.
Table of Contents
Up to First Year
Commissionable
Target Premium
First Year
Commissionable
Target to First Year
Commissionable
Maximum Premium
190% - 215% ^
190% - 215% ^
190% - 215% ^
Up to First Year
Commissionable
Target Premium
First Year
Commissionable
Target to First Year
Commissionable
Maximum
Premium
Service
Fees
Years 6+
2.0%
nil
2.5%
2.5%
Asset Based
Compensation Years 6+
Indexed
Accounts
Daily
Interest and
GIA Accounts
0.125%
0.00%
Life Dimensions and Life Dimensions (Low Fees) with Fund Accelerator Investment Bonus
First Year1 Overrides
Up to First Year
Commissionable
Target Premium
First Year
Commissionable
Target to First Year
Commissionable
Maximum Premium
190% - 215% ^
190% - 215% ^
190% - 215% ^
Up to First Year
Commissionable
Target Premium
First Year
Commissionable
Target to First Year
Commissionable
Maximum
Premium
Service
Fees
Years 6+
1.0%
nil
2.5%
First Year
Commissionable
Target to First Year
Commissionable
Maximum
Premium
Service
Fees
Years 6+
1.0%
nil
2.5%
First Year
Commissionable
Target to First Year
Commissionable
Maximum
Premium
Service
Fees
Years 6+
2.0%
nil
2.5%
2.5%
Asset Based
Compensation Years 6+
Indexed
Accounts
Daily
Interest and
GIA Accounts
0.125%
0.00%
190% - 215% ^
First Year
Commissionable
Target to First Year
Commissionable
Maximum Premium
190% - 215% ^
190% - 215% ^
Up to First Year
Commissionable
Target Premium
1.0%
Asset Based
Compensation Years 6+
Indexed
Accounts
Daily
Interest and
GIA Accounts
0.125%
0.00%
190% - 215% ^
First Year
Commissionable
Target to First Year
Commissionable
Maximum Premium
190% - 215% ^
190% - 215% ^
Up to First Year
Commissionable
Target Premium
2.5%
Asset Based
Compensation Years 6+
Indexed
Accounts
Daily
Interest and
GIA Accounts
0.125%
0.00%
Minimum
to 3 X
Minimum
Premium
3 X Minimum
Premium to
Maximum
Premium
190% - 215% ^
Up to First
Year
Minimum
Premium
First Year
Minimum to 3
X First Year
Minimum
Premium
3 X First Year
Minimum to
Maximum
Premium
2.5%
2.5%
2.5%
Above First
Year
Maximum
Premium
nil
Service Fees
Years 6+
2.5%
Asset Based
Compensation
Years 6+
0.125%
Table of Contents
SUPPLEMENTARY BENEFITS
The rate of first year override shown is applicable to the representatives first year commission for the
Supplementary Benefit; the renewal override rate is applicable to the annual premium of the Supplementary
Benefit.
First Year 1
Overrides
Renewal Overrides 2
Years 2- 5
Service Fees
Years 6+
Waiver of Premium
190% - 215% ^
2.5%
2.5%
Payor Waiver
190% - 215% ^
2.5%
2.5%
190% - 215% ^
2.5%
2.5%
Childrens Term
190% - 215% ^
2.5%
2.5%
190% - 215% ^
2.5%
2.5%
190% - 215% ^
2.5%
2.5%
190% - 215% ^
2.5%
2.5%
190% - 215% ^
2.5%
2.5%
190% - 215% ^
2.5%
2.5%
190% - 215% ^
2.5%
2.5%
190% - 215% ^
2.5%
2.5%
190% - 215% ^
2.5%
2.5%
nil
nil
nil
190% - 215% ^
2.5%
2.5%
190% - 215% ^
2.5%
2.5%
ART Rider
Notes:
1 Please refer to the Product Illustration System for First Year Commissionable Target and Commissionable Maximum Premiums. Policy changes
made after issue may result in recalculated First Year values.
2 Renewal Overrides are paid on New Deposits only.
3 BGIO Rider is available on Life Dimensions plans and Preferred Term 10 and 20 plans.
4 LifeProvider Additional Coverage Rider is only available on LifeProvider or LifeProvider (Low Fees) plans.
5 Term 100 Rider is not available on LifeProvider.
6 Renewal Override on the ART Rider will be paid as long as there is ART coverage in force, in years 2 to 5, and will be paid even if no new
deposits are made to the plan.
^ Refer to First Year MGA Compensation Qualification and Payments section of this Schedule.
Table of Contents
Policy Year
First Policy Year is defined as the 12-month period commencing on the Policy Effective Date.
Subsequent Policy Years are defined as the anniversary dates commencing with the first day of the thirteenth
(13th) month after the Effective Date of the Policy.
2.
First Year Override (FYO) is calculated as a percentage of first year commission (FYC) paid during the First Policy Year
and is subject to a chargeback period (Please refer to Chargeback Rules for Universal Life Plans). FYO payments and
chargebacks follow all of the same rules as FYC transactions. For example:
FYC is advanced for the total Annual Planned Premium, which is based upon the deposit received by BMO
Insurance at the time the policy is settled (BMO Insurance reserves the right to pay FYC and FYO on an as
earned basis).
At the end of the First Policy Year, a Recapture of unearned advanced FYC and FYO is immediately applied
where the amount on which FYC and FYO was advanced is greater than the deposits actually received in the
First Policy Year.
Additional FYC and FYO will be paid on an as-earned basis when deposits are received in the First Policy Year in
excess of the Annual Planned Premium on which FYC and FYO was advanced.
3.
Commencing with the Second Policy Year, Renewal Override will be paid at the rates specified in each products
Compensation Rate Table. The rate is determined based upon the date the deposit is received at BMO Insurances
Head Office.
Renewal Override rates are based upon First Year Commissionable Target Premium and First Year
Commissionable Maximum Premium. (Note, for the Universal Life Investment Loan Plan renewal Override is
based on First Year Minimum Premium bands as defined in the Compensation Rate Table.)
Transfers to the Side Account and Deposits to the exempt portion of the policy transferred from the Side
Account will receive Override at the rate specified in each products Compensation Rate Table and based upon
the effective date of the deposit or transfer.
4.
Service Fees on Base Plans and Supplementary Benefits will be paid at the rate and duration specified in each
product's Commission Rate Table and will be paid on new deposits only up to an amount equal to the First Year
Minimum Premium.
5.
Asset Based Compensation (ABC) is paid monthly beginning in the 6th Policy Year (or as specified in each products
Compensation Rate Tables). ABC is not payable on amounts held in the Collateral Loan Account on the UL Investment
Loan Plan.
ABC is calculated at the end of each month beginning in the Policy Year stated for each UL product and is
based on the Fund Value of the policy. The amount payable each month is equal to [Fund Value x Rate] / 12
6.
For policies issued over Insurance Age 70, compensation is based on the age 70 premium.
7.
Compensation on Ratings:
0%
0%
0%
Same Rate as
Base Plan
Same Rate as
Base Plan
0%
Table of Contents
2.
3.
Policy Years
Withdrawal Source
Chargeback Rate
1-2
Exempt Investments
10.5%
1-2
0.63%
Table of Contents
10
11
12
65
100
100
100
95
90
85
80
75
70
Completed Months
13
14
15
16
17
18
19
20
21
22
23
24
60
55
50
45
40
35
30
25
25
25
25
Life DimensionsPRESTIGE
If there is a request to reduce the Sum Insured or reduce the coverage provided by any Supplementary Benefit during
the chargeback period, the portion of the FYO charged back will be calculated as above, but will use the Life
DimensionsPRESTIGE table in section 6 below.
6.
Override Chargeback on Policy Lapse, Surrender or Premium Reduction due to other policy changes
If the policy and its associated supplementary benefits fail to remain in force for the full chargeback period
following the date of issue, a portion of the FYO will be charged back.
For a policy lapse, cancellation or surrender, the amount charged back will equal the FYO paid multiplied by
the percentage shown in the following table based on the number of completed months the policy
remained in force.
For policies that remain in force but where the premiums are reduced due to a change in smoking status, or
any other policy change, the amount charged will equal the difference between the FYO paid and the FYO
that would have been paid multiplied by the percentage shown in the following table based on the number
of completed months prior to the premium reduction.
Note: A chargeback is not applicable if the policy terminates due to payment of the death and/or critical illness
benefit.
Life DimensionsPRESTIGE
Completed Months
10
11
12
92.5
90
85
80
100
100
100
100
Completed Months
13
14
15
16
17
18
19
20
21
22
23
24
25
77.5
75
72.5
70
67.5
65
62.5
60
57.5
55
52.5
50
47.5
Completed Months
26
27
28
29
30
31
32
33
34
35
36
37
45
42.5
40
37.5
35
32.5
30
27.5
25
20
10
97.5 95.0
10
11
12
60
100
100
95
90
85
80
75
70
65
Completed Months
13
14
15
16
17
18
19
20
21
22
23
24
55
50
45
40
35
30
25
20
15
10
Table of Contents
COMPENSATION RATE TABLES FOR TRADITIONAL LIFE AND CRITICAL ILLNESS PLANS
FIRST YEAR OVERRIDE IS A PERCENTAGE OF THE REPRESENTATIVES FIRST YEAR COMMISSION.
RENEWAL OVERRIDES AND SERVICE FEES ARE A PERCENTAGE OF PREMIUM
Term Life
Renewal
Overrides
Years 2 - 5
FYO
Year 1
EasyTerm10
Preferred Term 10
Preferred Term 20
Preferred Term 30
190%
190%
190%
190%
215%^
215%^
215%^
215%^
2.0%
2.5%
2.5%
2.5%
Service Fees
Years 6 - 10
2.0%
2.5%
2.5%
2.5%
Years 11+
Years 21+
2.0%
2.5%
2.5%
2.5%
2.0%
2.5%
2.5%
2.5%
Years 11 - 20
Years 21+
Whole Life
FYO
Renewal
Overrides
Years 2 - 5
Year 1
20 Pay Life
Term 100 Platinum
Term 100 Plus
Pure Term 100
190%
190%
190%
190%
215%^
215%^
215%^
215%^
3.0%
2.5%
2.5%
2.5%
Service Fees
Years 6 - 10
3.0%
2.5%
2.5%
2.5%
3.0%
2.5%
0%
0%
0
2.5%
0%
0%
Critical Illness
FYO
Year 1
190% - 215%^
190% - 215%^
Renewal Overrides
Years 2 - 5
2.5%
2.5%
Service Fees
Years 6 - 10
2.5%
2.5%
190% - 215%^
2.5%
2.5%
2.5%
190% - 215%^
190% - 215%^
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
190% - 215%^
1.0%
1.0%
1.0%
Years 11+
2.5%
2.5%
Supplementary Benefits 1
FYO
Year 1
190% - 215%^
Renewal Overrides
Years 2 - 5
2.5%
Service Fees
Years 6+
0%
190% - 215%^
190% - 215%^
190% - 215%^
2.5%
2.5%
2.5%
0%
0%
2.5%
190% - 215%^
190% - 215%^
2.5%
2.5%
2.5%
0%
190% - 215%^
5.0%
0%
1 Supplementary Benefits are not available on Pure Term 100 policies at Issue Age/ESA 81-85.
2 BGIO Rider is available at issue on Life Dimensions plans and Preferred Term 10 and 20 plans.
^ Refer to First Year MGA Compensation Qualification and Payments section of this Schedule.
Table of Contents
FYO Rate in
1st Year
Premium on Flat Extras payable
for 5 years or less
Premium on Flat Extras payable for
more than 5 years
0%
0%
N/A
Same Rate as
Base Policy
Same Rate as
Base Policy
0%
10
Table of Contents
14
15
16
17
18
19
20
11
10
11
12
22
12.50 8.33
23
24
4.17
0.00
Table of Contents
15.0%
15.0%
12
Table of Contents
INTERNAL REPLACEMENTS
When a new policy (or coverage) replaces an existing policy (or coverage), which was issued within the past 5 years
whether in force or lapsed, FYC and applicable FYO paid on the new policy (or coverage) will be reduced based on the
following table:
FYC on the new policy will be reduced by the
following percentage of the FYC credited to the
writing agent on the original policy (coverage):
100%
75%
50%
25%
0%
With all internal replacements, the FYC and FYO will be reduced whether or not the original advisor is the writing
agent of the new policy.
Chargeback due to lapse will not be applied to the Replaced Policy, and the new policy will be subject to the
applicable Chargeback Schedule.
If the calculated FYC and FYO on the new policy results in a negative, the amounts owed will be applied to the writing
advisors commission account and the writing advisors MGAs override account respectively; renewal commission and
renewal override will be applied to the new policy for the First Policy Year.
2.
A. BMO Insurance and former AIG Life of Canada (Life policies) to Eligible BMO Insurance Plans
FYC and FYO APPLIED TO NEW POLICY
Eligible BMO Insurance Plans: Life Dimensions, 20 Pay Life, T100 Plus and T100 Platinum.
Note: LifeProvider and Pure Term 100 plans are not eligible conversion plans.
B.
Former Hartford Life Term Conversions to Eligible Conversion Plans: Whole Life or Endowment to 85
FIRST YEAR OVERRIDE
BMO Insurance (formerly AIG Assurance or Norwich Union) Term Conversions to Eligible BMO Insurance Plan
Whole Life Commission Rates
FYC
ELIGIBLE PLAN
30%
30%
30%
Table of Contents
ELIGIBLE PLAN
30%
30%
30%
Life Dimensions
Life DimensionsPRESTIGE
Universal Life Investment Loan Plan
*FYC - Tier 1 refers to the Commissionable Target Premium amount for FYC for Life Dimensions and Life
DimensionsPRESTIGE
*FYC - Tier 1 refers to Minimum Premium for Universal Life Investment Loan Plans
For details on other FYC levels, renewals, service fees, chargeback schedules, conditions and/or rules, please refer to the
applicable BMO Insurance Commission Schedules in effect at the time.
FYO will be applied according to the applicable Compensation Rate Table mentioned above.
3.
Definition: Family members of the advisor include, but are not limited to, spouse, children, siblings, parents or
dependents.
If the policy and its associated supplementary benefits fail to remain in force for the full chargeback period following
the date of issue, as shown in the following tables, a portion of the FYC and FYO will be charged back.
For a policy lapse, cancellation or surrender, the amount charged back will equal the FYC and FYO paid multiplied
by the percentage shown in the following table based on the number of completed months the policy remained
in force.
For policies that remain in force but the premiums are reduced due to a reduction in face amount, a change in
smoking status, or any other policy change, the amount charged will equal the difference between the FYC and
FYO paid and the FYC and FYO that would have been paid multiplied by the percentage shown in the following
table based on the number of months prior to the premium reduction.
4.
1 30
31 60
100%
50%
Table of Contents
6.
REINSTATEMENTS
Commission will be paid based upon the premium submitted and applied to reinstate the policy.
7.
8.
SERVICE FEE
The MGA agrees to service directly, or through its Producers all of the insurance and/or annuity policies sold
through the MGA's Producers and acknowledges that payment of the Service Fee for subsequent years is
contingent upon the MGA appropriately servicing the policies.
9.
VESTING
First Year Override and Renewal Overrides (years 2 to 5) vest immediately. Service Fees (years 6+) vest
immediately subject to divesting pursuant to Section 8, Service Fee, above. Payment of Service Fees begins in
Year 6.
10. CHARGEBACKS
First year override paid to the MGA for insurance and/or annuity policies shall be subject to a chargeback to the
MGA's account for the number of months following the date of issue, as specified for that policy in its Schedules of
Compensation. If, during that period, a policy ceases to be in force, the amount of the chargeback depends on the
number of months that the policy has been in force and will be equal to that first year override multiplied by the
appropriate percentage detailed in its Schedule of Compensation.
The MGA agrees that any amounts charged back to him under this section shall be debt due BMO Insurance by the
MGA. The MGA agrees to repay those amounts in full to BMO Insurance upon demand.
First year commission paid to MGAs Producers for insurance policies shall be subject to a chargeback to the
Producers account for the number of months following the date of issue, as specified for that policy in its
Schedules of Compensation. If, during that period, a policy ceases to be in force, the amount of the chargeback
depends on the number of months that the policy has been in force and will be equal to that first year
commission multiplied by the appropriate percentage detailed in its Schedule of Compensation.
The MGA agrees that any amounts charged back to the MGAs Producers under this section shall be debt due BMO
Insurance by the MGA. The MGA agrees to repay those amounts in full to BMO Insurance upon demand.
The MGA acknowledges indebtedness to BMO Insurance for any amounts charged back to him under this section.
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To find out more about BMO Insurance products, please contact the BMO Insurance regional sales office in
your area, call 1-877-742-5244 or visit www.bmoinsurance.com/advisor.
Ontario Region
Western Region
1-800-608-7303
1-866-217-0514
1-877-877-1272
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