ExecutivePerils Insurance Services secures and otherwise facilitates the purchase of insurance coverage for its retail agents’ clients (Insureds) from a variety of insurance carriers, and insurance markets (collectively "Carriers") and sometimes engages the services of other entities, including Managing general Agents, etc. (“Entities”), in connection with the issuance of such policies. ExecutivePerils may receive compensation for such placements from various sources depending on the circumstances surrounding the transaction.
Forms of Compensation
- Commissions. In most instances, ExecutivePerils is primarily compensated for the insurance brokerage services that it provides to its retail agents’ policyholder clients through commission payments that are based on the premium charged and collected by the Carriers, and paid for by the Carriers for each insurance policy secured for our retail agents’ clients. This commission is built into the premium set by the Carrier. The percentage of these commissions varies by insurance policy type and insurance market. These commission payments account for the largest percentage of ExecutivePerils revenue.
- Additional Compensation. ExecutivePerils also may receive additional compensation from certain Carriers and Entities with whom it places business. Such additional compensation is sometimes referred to as contingent and/or supplemental commissions and may be based on a variety of factors, including without limitation, the overall volume of premiums paid to or policies sold by or through a particular Carrier or Entity for ExecutivePerils’ retail clients’ Insureds for a certain period; the overall growth, persistency and/or retention of the premiums paid by ExecutivePerils’ retail agents’ Insureds to or through a particular Carrier or Entity for a certain period; and, in certain cases, the profitability of the total premium paid for insurance policies sold to ExecutivePerils’ retail agents’ clients for a certain period (i.e., aggregate loss history on all of the insurance policies sold to ExecutivePerils’ retail agents’ clients) by a particular Carrier for a certain period.
- Broker Fees. ExecutivePerils often includes a “Broker Fee” for compensation in addition to any commission received or not received from the Carriers/Entities for the on going servicing of the Insured during the policy period including but not limited to claims support.
Protecting Our Clients’ Interests
- We insure that our clients’ interests are protected in a variety of ways. Among other things:
- ExecutivePerils management team does not disclose to its employees the terms of ExecutivePerils additional compensation arrangements with any Carrier or other Entities or the status of achieving any benchmarks set forth in those additional compensation arrangements.
- ExecutivePerils’ employees do not receive any monetary award or other incentive to place business with certain Carriers or Entities over another, including any potential receipt by ExecutivePerils of additional compensation from any Carrier or other Entity.
- ExecutivePerils is committed to providing quality service and undivided loyalty to its clients. In that regard, ExecutivePerils will provide to its retail clients’ additional details about the forms of any and all compensation earned for the facilitation of the purchase of their respective insurance policies.
If you are a ExecutivePerils client and you have any questions or would like additional information concerning ExecutivePerils compensation arrangements for any of its insurance brokerage services, please do not hesitate to contact Peter R. Taffae at (310) 444-9333 x 100