Suret(ies) sell insurance products and services through insurance agents and brokers, commonly referred to as "Producers." The compensation paid to producers is designed to encourage them to sell products, place profitable business with the surety(ies), and provide services to policyholders. A producer may receive one or more of the below payments, depending on the Producer's business relationship with its surety(ies).
Producers are generally paid a Base Commission for the sale and service of policies. Base Commission is a fixed percentage of the policy premium or a fixed amount per policy set prior to the sale (effective date) of the policy to which it applies. The percentage or amount may vary depending on certain factors, such as the type of product, the risk classification, whether the policy is new or a renewal, whether another policy is written for the same insured, and the services provided to the policyholder. In some cases, the percentage or amount may be negotiated on a transaction by transaction basis, and may vary by Producer based, at least in part, on the Producer's past performance and the expected value of the Producer's business going forward.
Like Base Commission, Supplemental Commission is a fixed percent of premium or a fixed amount per policy, which is set prior to the sale of the policy to which it applies. Eligibility for, and the amount of, Supplemental Commission paid on current business is based upon a Producer's ability to meet certain past production, growth, profitability or other historical performance objectives established by the surety(ies).
Contingent Commission is generally a particular percent of the premium written during a preceding performance period or a particular sum that is based upon a Producer's ability to meet certain production, growth, profitability or other performance objectives established by us for that preceding period. As such, eligibility for, and the amount of Contingent Commission cannot be determined until after the sale of bonds that occur over a given period of time. Contingent Commission is generally paid separately from Base Commission on an annual or other periodic basis. By executing this document you specifically acknowledge your understanding that we may enter into such contingency arrangements.
Some producers may charge their customers a fee on their own account related to services they provide to their customers. Any such fee would not be part of the premium charged by the surety, would not be charged on the surety's behalf, and may be in addition to receiving compensation from us. This can include a placement contingency fee.
Certain applicants may or may not qualify for standard (filed) rates or we may choose to place certain applicants on non-standard surety programs. Applicants/bond principals should clearly understand such deviation from standard or filed rates and by entering into an bond agreement with Surety One, Inc., and/or it's producers, specifically consent to the same. Certain risks may require broker placement fees in addition to premium. Such contingency placement fees are compensation for a produer/broker's efforts to place an applicant's risk. Applicant acknowledges these cost issues and specifically consents to the same by entering into contract with Surety One, Inc.
You may feel free to contact us with any questions regarding this policy at (800) 373-2804.