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Bonita's Agency sells an insurance policy offered by Capital Insurance Company for a commission of $300. In addition, Bonita will receive a further commission of

Bonita's Agency sells an insurance policy offered by Capital Insurance Company for a commission of $300. In addition, Bonita will receive a further commission of $54 each year for as long as the policyholder does not cancel the policy. After selling the policy, Bonita does not have any remaining performance obligations. Based on its significant experience with these types of policies, Bonita estimates that policyholders on average renew the policy for 5.5 years. It has no evidence to suggest that previous policyholder behaviour will change. Headlines Agency reports commission income in Service Revenue-Commissions.

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