Agency Compensation Statement
Capitol Insurance commits to honesty, integrity, and openness. We conduct ourselves and treat our clients with the highest level of respect. In order to respect this openness, we are providing this compensation statement. We receive compensation for the sale and placement of insurance products in various methods. Here are the details.
Agency commission is the primary source of revenue for Capitol Insurance. When you pay your premium a small percentage is usually paid to the agency. Then a portion of this amount is given to your personal agent. As a result, we are able to provide you with the custom care and attention you deserve.
Another source of revenue for Capitol Insurance is income from fee-paying clients. These fees are mostly a replacement for commissions. Disclosures may be requested when paying both fees and commissions. disclosures may be requested. Fee-paying clients enter into specific fee agreements with Capitol Insurance.
In addition, Capitol Insurance occasionally receives contingent commission. This is a standard practice in insurance. People often call this overrides or profit-sharing.
The amount of this commision is based on the performance of business Capitol Insurance has placed with a specific carrier. For instance, account growth, volume, loss ratio, and retention effect this total. Usually these factors are reviewed as a whole instead of for individuals.
Capitol Insurance has entered into contingent commission agreements with some of our insurance carriers. Because of these agreements, our employees sometimes participate in relationship-building activities. These activities may include small gifts, dinner, or entertainment.
Capitol Insurance does not enter into placement services agreements.
Our staff employees receive pay based on job performance, education level, and more. Staff employees do not receive commission for their work. However, our sales employees receive compensation on a commission system based on their production of new business and retention of existing business. This method of commission encourages our sales team to provide our clients with the best possible service.
If you have questions, please contact Capitol Insurance directly. We want to make sure you are comfortable with this compensation process. If possible, we will provide answers to all your questions.