Common use of Incentive Program Clause in Contracts

Incentive Program. 1. Pursuant to Section A of Exhibit B, Covered California incorporates a performance incentive or “bonus” program into this Schedule of Commissions that provides additional compensation. The program applies to new Covered California for Small Business (CCSB) groups with initial effective dates of 7/1/25, 8/1/25, 9/1/25, 10/1/25, 11/1/25, 12/1/25, and 1/1/26. Agencies and Agents must strictly comply with the program rules to qualify for incentive payments. Covered California shall not be liable for any payments after cancellation of the program. Covered California retains sole discretion to determine compliance with the program rules. As set forth below, Covered California will pay incentive payments to Agency in addition to standard commission payments as set forth in Section A of Exhibit B in this Agreement. Covered California shall report the incentive payments on Forms 1099 and 5500, as well as any other reporting as required by law. The Incentive Program as set forth in this section is subject to cancellation or modification at any time by the Exchange without prior notice to Agency. Covered California will make a good faith effort to notify Agency of any modifications to the Incentive Program. Covered California shall not be liable for payment of any incentive payments after cancellation of the program. Table Group Subscriber Size Tier 1 Agency earns bonus after submission of 3rd group Tier 2 Agency earns increased bonus after submission of 6th group 51-100 $8,000 $12,000 26-50 $4,000 $6,000 11-25 $2,000 $3,000 5-10 $1,000 $1,500 2. The terms and conditions for the Incentive Program are as follows: Initial Payout Incentive: a. Applies to new Covered California for Small Business (CCSB) groups with initial effective dates of 7/1/25, 8/1/25, 9/1/25, 10/1/25, 11/1/25, 12/1/25, and 1/1/26. b. Agency must submit minimum of three groups to qualify for bonus program. • After qualifying with third group submission, group submissions 1-5 will be paid based on applicable subscriber size category (see Agency Incentive Structure Table, Tier 1) • Agencies who submitted 6 or more groups during the duration of incentive period shall receive the incentive payment applicable to group subscriber size listed in Tier 2 of the Agency Incentive Structure. If an Agency had previously received an incentive payment for groups under Tier 1 of the Agency Incentive Structure Table, it would receive a retroactive incentive payment of the difference between the Tier 1 and Tier 2 payment amounts for those groups. Agencies will be paid no more than the amount listed in Tier 2 for any group enrolled during the incentive period. c. To be eligible, the Employer Group must remain in force and pay premiums in full for ninety (90) days from their effective date of coverage. d. Subscriber count (i.e., enrolled employee count) is determined at time of initial enrollment as counted in CCSB systems and is based on medical subscribers only. No retroactive additions will be eligible for incentive payment. Dependents of enrolled employees are not counted. e. Groups must satisfy standard CCSB binder payment requirements for enrolled employees to count towards incentive program payments. f. No pro-ration of target values will take place. g. Business written through partnering General Agencies qualifies. h. Covered California intends to issue incentive payments forty-five (45) days following the ninety (90) day requirement outlined in Section E(2)(c) of Exhibit F. Covered California may modify its payment schedule at any time. i. Agency may participate in this incentive program so long as it maintains active certification required by Section C(2) of Exhibit A and otherwise complies with all provisions in this Agreement. j. Bonus payments are in addition to regular sales commissions. Bonus payments will be reported on Forms 1099 and 5500 and as otherwise required by law, including reporting required by California AB 2589 (January 2009). k. If applicable, Agency shall disclose commissions and other payments as required by law. l. Covered California may cancel or modify this incentive program at any time without prior notice to the Agencies and Agents participating in the program. Covered California shall not be liable for payment of any incentive payments after cancellation or termination of the program.

Incentive Program. 1. Pursuant to Section A of Exhibit B, Covered California incorporates a performance incentive or “bonus” program into this Schedule of Commissions that provides additional compensation. The program applies to new Covered California for Small Business (CCSB) groups with initial effective dates of 7/1/257/1/24, 8/1/258/1/24, 9/1/259/1/24, 10/1/2510/1/24, 11/1/2511/1/24, 12/1/2512/1/24, and 1/1/261/1/25. Agencies and Agents must strictly comply with the program rules to qualify for incentive payments. Covered California shall not be liable for any payments after cancellation of the program. Covered California retains sole discretion to determine compliance with the program rules. As set forth below, Covered California will pay incentive payments to Agency in addition to standard commission payments as set forth in Section A of Exhibit B in this Agreement. Covered California shall report the incentive payments on Forms 1099 and 5500, as well as any other reporting as required by law. The Incentive Program as set forth in this section is subject to cancellation or modification at any time by the Exchange without prior notice to Agency. Covered California will make a good faith effort to notify Agency of any modifications to the Incentive Program. Covered California shall not be liable for payment of any incentive payments after cancellation of the program. Table Group Subscriber Size Tier 1 Agency earns bonus after submission of 3rd group Tier 2 Agency earns increased bonus after submission of 6th group 51-100 $8,000 $12,000 26-50 $4,000 $6,000 11-25 $2,000 $3,000 54-10 $1,000 $1,500 2. The terms and conditions for the Incentive Program are as follows: Initial Payout Incentive: a. Applies to new Covered California for Small Business (CCSB) groups with initial effective dates of 7/1/257/1/24, 8/1/258/1/24, 9/1/259/1/24, 10/1/2510/1/24, 11/1/2511/1/24, 12/1/2512/1/24, and 1/1/261/1/25. b. Agency must submit minimum of three groups to qualify for bonus program. • After qualifying with third group submission, group submissions 1-5 will be paid based on applicable subscriber size category (see Agency Incentive Structure Table, Tier 1) • Agencies who submitted 6 or more groups during the duration of incentive period shall receive the incentive payment applicable to group subscriber size listed in Tier 2 of the Agency Incentive Structure. If an Agency had previously received an incentive payment for groups under Tier 1 of the Agency Incentive Structure Table, it would will receive a retroactive incentive payment of the difference between the Tier 1 and Tier 2 payment amounts for those groups. Agencies will be paid no more than the amount listed in Tier 2 for any group enrolled during the incentive period. c. To be eligible, the Employer Group must remain in force and pay premiums in full for ninety (90) days from their effective date of coverage. d. Subscriber count (i.e., enrolled employee count) is determined at time of initial enrollment as counted in CCSB systems and is based on medical subscribers only. No retroactive additions will be eligible for incentive payment. Dependents of enrolled employees are not counted. e. Groups must satisfy standard CCSB binder payment requirements for enrolled employees to count towards incentive program payments. f. No pro-ration of target values will take place. g. Business written through partnering General Agencies qualifies. h. Covered California intends to issue incentive payments forty-five (45) days following the ninety (90) day requirement outlined in Section E(2)(c) of Exhibit F. Covered California may modify its payment schedule at any time. i. Agency may participate in this incentive program so long as it maintains active certification required by Section C(2C (2) of Exhibit A and otherwise complies with all provisions in this Agreement. j. Bonus payments are in addition to regular sales commissions. Bonus payments will be reported on Forms 1099 and 5500 and as otherwise required by law, including reporting required by California AB 2589 (January 2009). k. If applicable, Agency shall disclose commissions and other payments as required by law. l. Covered California may cancel or modify this incentive program at any time without prior notice to the Agencies and Agents participating in the program. Covered California shall not be liable for payment of any incentive payments after cancellation or termination of the program.

Incentive Program. 1. Pursuant to Section A of Exhibit B, Covered California incorporates a performance incentive or “bonus” program into this Schedule of Commissions that provides additional compensation. The program applies to new Covered California for Small Business (CCSB) groups with initial effective dates of 7/1/257/1/23, 8/1/258/1/23, 9/1/259/1/23, 10/1/2510/1/23, 11/1/2511/1/23, 12/1/2512/1/23, and 1/1/261/1/24. Agencies and Agents must strictly comply with the program rules to qualify for incentive payments. Covered California shall not be liable for any payments after cancellation of the program. Covered California retains sole discretion to determine compliance with the program rules. As set forth below, Covered California will pay incentive payments to Agency in addition to standard commission payments as set forth in Section A of Exhibit B in this Agreement. Covered California shall report the incentive payments on Forms 1099 and 5500, as well as any other reporting as required by law. The Incentive Program as set forth in this section is subject to cancellation or modification at any time by the Exchange without prior notice to Agency. Covered California will make a good faith effort to notify Agency of any modifications to the Incentive Program. Covered California shall not be liable for payment of any incentive payments after cancellation of the program. Table Group Subscriber Size Tier 1 Agency earns bonus after submission of 3rd group Tier 2 Agency earns increased bonus after submission of 6th group 51-100 $8,000 $12,000 26-50 $4,000 $6,000 11-25 $2,000 $3,000 54-10 $1,000 $1,500 2. The terms and conditions for the Incentive Program are as follows: Initial Payout Incentive: a. Applies to new Covered California for Small Business (CCSB) groups with initial effective dates of 7/1/257/1/23, 8/1/258/1/23, 9/1/259/1/23, 10/1/2510/1/23, 11/1/2511/1/23, 12/1/2512/1/23, and 1/1/261/1/24. b. Agency must submit minimum of three groups to qualify for bonus program. • After qualifying with third group submission, group submissions 1-5 will be paid based on applicable subscriber size category (see Agency Incentive Structure Table, Tier 1) • Agencies who submitted 6 or more groups during the duration of incentive period shall receive the incentive payment applicable to group subscriber size listed in Tier 2 of the Agency Incentive Structure. If an Agency had previously received an incentive payment for groups under Tier 1 of the Agency Incentive Structure Table, it would will receive a retroactive incentive payment of the difference between the Tier 1 and Tier 2 payment amounts for those groups. Agencies will be paid no more than the amount listed in Tier 2 for any group enrolled during the incentive period. c. To be eligible, the Employer Group must remain in force and pay premiums in full for ninety (90) days from their effective date of coverage. d. Subscriber count (i.e., enrolled employee count) is determined at time of initial enrollment as counted in CCSB systems and is based on medical subscribers only. No retroactive additions will be eligible for incentive payment. Dependents of enrolled employees are not counted. e. Groups must satisfy standard CCSB binder payment requirements for enrolled employees to count towards incentive program payments. f. No pro-ration of target values will take place. g. Business written through partnering General Agencies qualifies. h. Covered California intends to issue incentive payments forty-five (45) days following the ninety (90) day requirement outlined in Section E(2)(c) of Exhibit F. Covered California may modify its payment schedule at any time. i. Agency may participate in this incentive program so long as it maintains active certification required by Section C(2C (2) of Exhibit A and otherwise complies with all provisions in this Agreement. j. Bonus payments are in addition to regular sales commissions. Bonus payments will be reported on Forms 1099 and 5500 and as otherwise required by law, including reporting required by California AB 2589 (January 2009). k. If applicable, Agency shall disclose commissions and other payments as required by law. l. Covered California may cancel or modify this incentive program at any time without prior notice to the Agencies and Agents participating in the program. Covered California shall not be liable for payment of any incentive payments after cancellation or termination of the program.