The Philleo Agency may be compensated for our work in a variety of ways, including the following:
Regular Commissions: Insurance companies with which we place business generally pay us commissions for the placement or renewal of policies. In most cases, such commissions are calculated as a percentage of the premium paid to the insurance company for the specific policy and are included in our client’s premium cost. There are no additional costs to our clients. Most carriers have similar compensation structures thus reducing any agency incentive to place business with a particular carrier.
Excess & Surplus Commissions: Certain situations may require a policy be written with a nonstandard or specialty insurers. Like regular commissions, it is also calculated by the insurance carrier and included in our client’s policy payment. The agency commission for these policy types are fully earned and non-refundable.
Contingent Commissions and Other Incentive Payments: Some of the insurers that Philleo Agency represents grant us the opportunity to receive contingent commissions or supplemental income. Unlike regular commissions, contingent commissions and supplemental income are not tied to a specific policy, but rather are generally tied to various criteria relating to the overall business we place with those insurers, typically measured on an annual basis. These contingent commissions and supplemental income may be based on a number of factors relating to the business placed by our agency with the insurance company, including growth in premium, loss ratios, total written premium, retention of business, profitability, and/or other criteria. Some insurance companies may offer our agency other incentives or payments, such as marketing or administrative support, promotional fees, educational costs, and/or prizes, gifts, or awards (e.g. meals, trips, etc).
Client Fees: In some cases, our clients pay us a fee for handling their insurance needs. Any such fees are posted in our office.
This synopsis provides an overview of our general compensation practices. Because it is only a general overview, there may be exceptions not addressed above. Philleo Agency will disclose to our clients at their request the actual or anticipated compensation we receive in connection with the issuance or placement of insurance business and will upon request provide more information about our contingency fee and supplemental income arrangements with particular insurers.
Code of Business Conduct
Our Commitment to Trust and Integrity for Our Customers
The Philleo Agency strives to meet the insurance needs of its Customers with the necessary insurance coverage, service and security at a fair price. We foster a spirit of trust with our Customers that rest on the twin pillars of honesty and integrity. The cornerstone of this relationship with our Customers is the disclosure and transparency of the compensation arrangements for services we provide to our Customers and insurers.
Our Commitment To Integrity And High Ethical Standards
Our client’s interests come first. We will never place our own financial or other interests over those of our clients. To bolster our commitment to our clients and to the highest ethical standards of behavior, we require all our employees and licensed producers to observe the fundamentals of our business practices in avoiding even the appearance of any conflicts of interest that relate to the offering and placement of insurance products and services and which include:
Fair Dealing
It is imperative that the needs and interests of our Customers be placed ahead of all other interests. Before giving advice or making recommendations, we learn our client’s needs, objectives, and circumstances, and then to offer products and services suitable to such needs.
Treatment of Customers
Customers are treated promptly, with respect and integrity. We only make promises to our clients that we can fulfill.
Marketing Practices
- Our recommendations and solutions to our Customers will result from our Customer’s best interests.
- We shall provide our Customers with the proposals of the best available insurer which will be the most suitable insurer that is willing to provide the requested coverage for our Customers taking into consideration the coverage to be provided, service, financial security, and price.
- We shall always advise our Customers to select the best available insurer.
- If we suggest multiple insurers, we will provide a recommendation based solely on our good faith evaluation of each of our Customer’s needs.
- We shall always take reasonable measures to obtain a quote from an insurer that might be a best available insurer.
