Compensation Disclosure

Fees

ACG-BRC may bill fees for consulting services. The amount is negotiated on a case by case basis. Moreover, the fees may be in lieu of and/or in addition to commissions & contingents (as described below).

Commission

The principal source of revenue for most insurance brokers result from a commission paid by insurance carriers based on the type of coverage and amount of premium. Commission expense is built into the premium charged by the carrier and paid by an insured. Whether premiums remitted directly to the carrier or to the broker, who in turn remits a net payment to the carrier, the earned commission is a specific percentage of premium. Agreements between brokers and carriers vary so certain brokers may earn a higher rate of commission than others.

Contingents

Often referred to as “contingencies” or “overages” or “profit sharing”, these fees are based on the performance of the broker’s “book of business” with the carrier during any given year. Year-end reconciliation takes into account premium growth and retention with loss experience (not of a single client but the book of business overall) often being the most sensitive factor in determining the amount of contingent (overage/profit-sharing) compensation. Such agreements are fairly commonplace among agents and brokers.