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What is the Membership fee?
The membership fee is a one time investment of $1,000.00.

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What is the Commission Sharing?
All prospective members joining the Cluster begin at the 80/20 distribution level. As each member attains $100,000 of Gross Written Premium on a rolling 12 months basis, the distribution enhances to 90/10 and stays at that level as long as you maintain at least $100,000 of Gross Written Premium. Many prospective members have a small book to roll through the Cluster and reach the $100,000 level in a matter of a few months.

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Is there a monthly Membership Fee?
No, if you do not write anything in a given month you do not receive a commission distribution but there is no monthly minimum fee.

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Is there an opportunity to earn a Contingency Bonus?
Yes! Contingencies are based on loss ratio, growth and possibly other factors. If a carrier determines Greater Midstates qualifies for a contingency bonus it is distributed to all members with volume through the Cluster with that carrier. If your premiums equate to 8% of the volume with that carrier you will receive 8% of the bonus (example). We distribute such bonuses 100%. (No 80/20 or 90/10 sharing.)

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Are there other special incentives?

Yes. Generally there are special production contests throughout the year that everyone can participate in.

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Is there a Volume Commitment?
Yes. The Clustering Agreement requires $50,000 of Gross Written Premium during the initial 24 months of membership. We urge each member to place $100,000 Gross Written Premium as referred to earlier. This enhances your commission sharing from 80/20 to 90/10.

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Who owns the accounts?
Each member owns the accounts he/she writes through the Cluster. Our Articles of Incorporation, By Laws and your Clustering Agreement clearly state Greater Midstates does not own any accounts.

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Is there a way to withdraw from the Cluster?
Yes. Simply give us 90 days advance written notice that you wish to withdraw. At the end of the 90 days you then have twelve (12) months to pull your accounts out of the Cluster. Generally you do this as each policy reaches expiration.

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How are Commissions paid?
Carriers pay commissions to the Cluster. The Cluster makes a commission distribution to all members on or about the 15th of each month. You receive one payment each month with documentation as to what accounts are covered in the distribution. (For example, if you had accounts with 12 different carriers during the month, your check
would cover all 12 and have documentation accordingly.)

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What limit of E&O coverage do I need to carry?
Greater Midstates requires continuing evidence of E&O protection showing a minimum per claim limit of $1,000,000.

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What other information is needed?
You are required to furnish copies of license and evidence of E&O at the start of your membership and continue to keep active copies on file with our corporate office.

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What is my operating territory?
Greater Midstates is licensed in Illinois, Indiana, Missouri, Wisconsin, Kentucky, Iowa and Arkansas. Your operating territory would be those states at maximum and limited to those states in which you hold an active license.

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When do I become a member?
Your membership becomes effective after you have supplied evidence of E&O protection, copy of license, submitted the Membership Agreement, and paid your $1,000 membership fee. Two of the Greater Midstates Directors and the Cluster President will sign their approval on the last page of the agreement. The final signature date will be your official date of membership.

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Do I automatically have access to each carrier?
No. Seldom does a member want or need all the carriers available through Greater Midstates. Carriers should be selected based on how they fit into your marketing plans. Greater Midstates will work with you to make available the markets that best fit your individual agency needs.


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