Many agencies have employees that perform many different functions. Therefore, when completing employee information, estimate the time spent on specific activities (i.e. service vs. support). These estimates can be used to allocate the number of personnel in a department as well as expenses such as compensation. Using fractional full time equivalents (i.e. 3.5) is acceptable.

For balance sheet information, please use balances as of 12/31/04.

BANK — AGENCY DATA FIELD DEFINITIONS

1. P&C Agency Bill Commissions
   Property & casualty commissions billed by the agency to customer. Includes fidelity & surety, assigned risk, joint underwriting funds, overdue and average commission adjustments and bid bonds. Also includes fees in lieu of commissions.
2. P&C Direct Bill Commissions
   Property and casualty commissions received directly from insurance companies where they have billed the premiums to the customer
3. Total Commissions & Fees
   Includes all property & casualty commissions (lines 1+2), life & health commissions and any fee income.
4. Contingents
   Commissions received as contingent payments for property & casualty business including bonus commissions and profit sharing from companies.
5. Outside Commission Expense
   Commissions paid to brokers and independent contractors outside of the agency. Do not include commissions paid to producers/owners or employees in the agency.
6. Gross Revenues
   Includes the sum of all revenue sources: total commissions and fees (line 3) plus contingents, investment earnings and any miscellaneous income.
7. Producer/Owner Payroll
   Include all owners and producers who have primary responsibility for selling to new customers or re-selling to old customers. Owners who function primarily as managers but who at one time were responsible for producing or handling a book of business should also be included. Also includes sales managers and sales center coordinators (telemarketers) if the latter are directly soliciting business and/or appointments from prospective customers. Include any directors fees paid to Producers/Owners. Do not include payments to retired producers or owners such as consulting fees or deferred compensation.
8. Total Service Personnel Payroll
   All personnel directly engaged in the servicing of commercial, personal and life & health customers. Claims people and marketers are included in this category as well as customer service representatives, account handlers, account executives, and placers. Also includes managers of personal, commercial and life & health service personnel.
9. Total Payroll
   Includes salaries, bonuses, and commissions paid to ALL agency employees: owners and producers (line 7), service personnel (line 8) and support personnel. Do not include benefits in this line item.
10. Total Selling Expense
    All agency-paid expenses relating to travel including airfare, trains, hotels, and meals; social clubs; auto leases, mileage, gas, oil, auto maintenance costs, parking, auto insurance, rental car expense, and auto license fees. Also includes advertising, meetings, conference costs, gifts and promotional items. Automobile mileage, auto leases, gas, oil & maintenance costs, parking, auto insurance, rental car expense and auto license fees. Advertising and promotion cost of advertisement including print, radio, yellow page, billboards and television advertisement. Customer relations, meetings, conference costs, gifts, promotional items, and contest awards.
11. Total Operating Expense
    Includes all expenses related to facilities; telephone; postage; office supplies and printing; dues, subscriptions and contributions; taxes and licenses; insurance (except employee benefits); professional fees; equipment rental and maintenance; bad debts; outside services and miscellaneous expenses.
12. Total Administrative Expense
    Includes periodic depreciation charges for equipment, buildings, and autos; charges for non-tangible asset write-offs such as purchased insurance renewal lists, restrictive convenants, goodwill and incorporation costs; officers' life insurance (paid by the agency with the agency as beneficiary); and all interests and finance charges for the use of money (mortgages, notes, and installments).

Amortization of Intangible Assets
Periodic charges to reflect the diminishing useful life of intangible assets (e.g., non-compete covenants, insurance renewals, restrictive covenants, and incorporation costs).

Officers' Life & Disability Insurance
Company paid life insurance with the company as beneficiary (e.g., retired life reserves and key-man) as well as company paid disability insurance with the company as beneficiary.

Interest Expense
All finance and interest charges for the use of money (e.g., mortgages, notes, and installment loans) go into this account.

Miscellaneous Administrative Expenses
All other administrative expenses not included in the accounts: depreciation of tangible assets, amortization of intangible assets, officers’ life & disability insurance and interest expense.

13. Total Expense
    Includes total compensation (payroll from line 9 plus benefits), total selling expenses (line 10), total operating expenses (line 11) and total administrative expenses (line 12).
14. Pre-Tax Profit
    Gross revenues (line 6) less total expense (line 13) less outside commission expense (line 5).
15. Total Production Personnel
    Include all owners and producers who have primary responsibility for selling to new customers or re-selling to old customers. Owners who function primarily as managers but who at one time were responsible for producing or handling a book of business should also be included. Also includes sales managers and sales center coordinators (telemarketers) if they are directly soliciting business and/or appointments from prospective customers.
16. Number of Personal Lines Service Personnel
    Includes all personnel directly engaged in the servicing of personal lines customers: claims personnel, marketers, placers, and customer service representatives. Count part-timers and employees who split their time among different functions as fractions of employees.
17. Number of Commercial Lines Service Personnel
    Includes all personnel directly engaged in the servicing of commercial lines customers: claims personnel, marketers, placers and customer service representatives. Count part-timers and employees who split their time among different functions as fractions of employees.
18. Total Service Personnel
    All personnel directly engaged in the servicing of commercial, personal and life & health customers. Claims people and marketers are included in this category as well as customer service representatives, account handlers, account executives and placers. Managers of personal, commercial and life & health service personnel are also included.
19. Total Support Personnel
    All non-producing staff members with managerial or administrative positions or duties (other than sales and customer service managers). This should include all full-time general managers, office managers, treasurers, human resource managers, information systems personnel, controllers, bookkeepers, accountants, accounting clerks, data processors, word processors, mail clerks, secretaries or receptionists.
20. Total Agency Personnel
    All agency employees, including producers, owners and part-time personnel.
21. Total P&C Agency Bill Premium
    The amount of property & casualty premium billed by the agency to their clients over a twelve-month period.
22. Total Accounts Receivable Over 60 Days
    The total amount of Accounts Receivables that is aged over 60 Days.
23. Cash
    Cash on hand, checking accounts, savings accounts, liquid asset accounts, money market funds, CDs and any other cash accounts.
24. Investments
    Brokerage accounts, stocks, bonds and all other investments, which can be converted to cash within one year.
25. Total Accounts Receivable - Insurance
    Balances due from customers on agency bill premiums and all other insurance receivables. Offset by any allowance for bad debt. Do not include company receivables.
26. Total Accounts Payable — Insurance
    Insurance — Accounts due to insurance companies for currently in-force policies, including pre-bills. Do not include payments for loans from insurance companies.
27. Total Current Assets
    All items that can be utilized within one year such as cash, investments, accounts receivable - insurance, accounts receivable — other, prepaid expenses or notes receivable — current.
28. Total Intangible Assets
    Includes the unamortized value of such assets as covenants not to compete, purchased insurance renewal lists, goodwill, going concern value, and organizational costs.
29. Total Current Liabilities
    All current liabilities such as accounts payable - insurance, accounts payable - other, accrued expenses & taxes, current portion of long term debt and any line of credit accounts.
30. Total Equity
    Total equity is total assets minus total liabilities. It may also be referred to as net worth.