Hanover producer compensation disclosure
华体会 Insurance Group (鈥溁寤徕�) is a leading provider of property and casualty insurance products for individuals, their families and businesses. Those products are sold through independent agents and brokers, often referred to as 鈥淧roducers.鈥� Producers who offer our products to customers are not employees of 华体会, but are typically compensated by 华体会 for their services in representing us and distributing our products. Independent agents are typically appointed by us to represent 华体会 and they generally represent several of our competitors as well.
Compensation
华体会 pays Producers a fixed commission for placing and renewing business with the company. 华体会 may also pay additional commission and other forms of compensation to Producers as an incentive to place and maintain their business with the Company.
Base commission
华体会, like other insurance companies, pays its Producers a base commission (sometimes called a 鈥渟tandard commission鈥�) for the sale and service of new and renewal policies placed with the company. The base commission is, in most cases, a fixed percentage of the policy premium paid by the customer and may vary by Producer, product, state or other factors.
Additional commission and other compensation
Like other insurance companies, 华体会 offers various forms of incentive compensation, including overrides and contingent commission payment programs, to eligible Producers. These programs provide additional compensation to eligible Producers for meeting certain goals that are pre-set by 华体会. Payment of additional compensation by 华体会 to Producers may be based on meeting one or a combination of criteria. Such criteria may include meeting certain production, retention, growth, profitability and/or other performance goals set by 华体会. It may not be possible for 华体会 to know when a particular policy is written whether such policy will contribute to making a Producer eligible for additional compensation.
- Production 鈥� Measures whether the volume of the Producer鈥檚 policies within an established period of time meets or exceeds 华体会鈥檚 pre-set expectations.
- Retention 鈥� Measures whether the Producer maintains a certain number of policies with 华体会 over an established period of time.
- Growth 鈥� Measures whether the volume of business the Producer has with 华体会 meets or exceeds a pre-set growth amount over an established period of time.
- Profitability 鈥� Measures whether the policies the Producer has placed with 华体会 achieve a pre-set loss ratio or other profitability factor established by 华体会.
- Commitment 鈥� Measures vary, but may include whether the Producer has committed to and/or placed a certain agreed percentage of business or product line with 华体会, agreed to provide 华体会 with an opportunity to quote on all or a portion of a Producer鈥檚 book of qualifying business or met other criteria to achieve a preferred status with us.
Business production incentive programs
From time to time, 华体会 may provide other incentive compensation programs to eligible Producers to compensate the Producers for their efforts and expenses in providing a Hanover quote to their customers and/or facilitating issuance of a policy to those customers who become policyholders of 华体会. 华体会 may also provide additional compensation to Producers based on the amount of such policies written and retained by 华体会 over an established period of time.
Loans
华体会 may make a loan to Producers interest free or at interest rates determined by 华体会. Repayment of such loans may be offset by compensation earned in the future or forgiven, in whole or in part, if certain pre-set objectives established by 华体会 are met by the Producer.
Captive insurance or reinsurance arrangements
华体会 may sponsor, be affiliated with or have other arrangements with reinsurance companies or risk retention entities in which Producers may invest and which are utilized to reinsure business placed by such Producers with 华体会 and pursuant to which such Producers may share in any underwriting profits and/or losses generated by such policies.
Services
华体会 may make available designated customer services to certain Producers, with or without charge to the Producer. If such services are provided to a Producer for a fee, that fee may be waived based upon the Producer meeting certain criteria established by us. Fees charged for such services may be offset against commissions payable from 华体会 to the Producer.
Reimbursement of marketing or promotional expense and other arrangements
华体会 may, from time to time, pay or sponsor Producer marketing efforts aimed at assisting certain Producers to write more business with 华体会. 华体会 may also pay other cash or non-cash compensation (such as awards, entertainment, trips or expense reimbursement) to Producers, including to an agency鈥檚 customer service representatives.
In order to assist 华体会 to fully analyze market developments, assess emerging opportunities, create and deliver products and services that most effectively meet the needs of the insurance marketplace, and identify potential customers whose risks meet 华体会鈥檚 underwriting guidelines, 华体会 may enter into service agreements with Producers whereby those Producers provide information, data, or services related to their customers and/or potential customers in order to enable 华体会 to quote on policies, consulting services, and/or general business services. 华体会 may pay compensation or fees to Producers related to such service agreements, in addition to customary commission arrangements.
华体会 may also pay compensation, including endorsement fees and administrative or other fees, to sponsoring associations or other entities or organizations that endorse or promote our products.
Additional information
If you would like specific information pertaining to your policy or compensation paid to your Producer by 华体会, please contact the Producer.