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Disclosure
of Distributor Compensation and Financial Links
The following
information is provided to assist consumers to better understand the issue
of compensation to sales associates whether they be a broker or agent.
Norfolk
Mutual sells insurance products through intermediaries referred to as
brokers or agents. These intermediaries are compensated for their work by
being paid a commission. Commissions are paid at a different percentage
depending upon the type of policy purchased.
We are
confident that our sales force possess the highest professional standards.
They have a duty to disclose their commission on any policy if so asked by
you, the client.
Commissions
currently paid by Norfolk Mutual are as follows:
Private passenger
& commercial auto
10%
Personal Lines
& commercial Property 20%
Short Term Crop
Hail
20%
Contingent
Profit Commission:
Contracts with our
brokers include a performance bonus which we refer to as a contingent
profit commission. The formula
to measure profitability includes claims costs, broker commissions, staff
salaries and all other operating expenses. The contingent profit is not
guaranteed and is averaged over an extended period of time, usually 3
years.
Business Loans:
Norfolk Mutual does
not provide financial support to brokers to assist in their succession
plans or expansion of their business.
Broker Point of Sale
Protocol:
Your broker can
provide you with a statement of their compensation showing what commission
is paid by all of their insurers by policy type. These commissions are paid
to the broker annually.
Inquiries
may be directed to norins@norfolkmutualinsco.on.ca
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