Compensation Disclosure Notice

CoverWallet conducts business with multiple insurance companies and offers a variety of insurance product and coverage choices. As an insurance producer, we are authorized to confer with insurance purchasers about the benefits, terms and conditions of insurance contracts. CoverWallet’s software, along with its individual agents, shall from time to time, in the course of normal business, offer advice concerning the benefits of particular insurance contracts, to sell insurance and to obtain insurance for purchasers. The role of producer in any particular transaction typically involves one or more of these activities.

CoverWallet is compensated through commissions paid by insurers and/or fees agreed to with our clients. This disclosure notice is intended to summarize the methods by which we derive compensation and how these amounts are determined.

Commission

We are typically compensated on a commission basis by the insurance company that is selected for the placement of your insurance policy. This commission percentage is determined by the insurance company and is calculated as a percentage of the insurance premium you pay. Such commission is fully earned at inception of the insurance programs CoverWallet places on behalf of its clients, and CoverWallet is entitled to retain such commission in the event of a midterm cancellation of coverage or a reduction in coverage resulting in a premium adjustment.

Contingent Commissions

From time to time, we may also receive contingent commissions from insurers due to the satisfaction of certain provisions. CoverWallet’s eligibility for compensation through contingent commissions is measured through criteria including growth, volume, business retention and profitability of placements, and is typically based on the total amount of certain insurance coverages placed by CoverWallet with the insurance company or the overall performance of the policies placed with that insurance company rather than on an individual policy basis. As a result, Aon may be considered to have an incentive to place your insurance coverages with a particular insurance company. These criteria are established by the insurers with whom we do business. Given the manner in which contingent commissions are earned, there is no exact method to determine, with certainty, the impact any one particular insurance policy placement will have on contingent commission arrangements. We strive for transparency with each Client and the final decision regarding coverage and market options is the Client’s decision.

Fees

CoverWallet may charge fees for placement of admitted insurance policies (where allowed by law). CoverWallet may negotiate a fee for services provided in the placement of non-admitted policies. Additionally, circumstances may arise, when quoted, that require a fee be paid for the filing of surplus lines policies. Persons and entities insured by surplus lines insurers cannot avail themselves of the protection and recovery afforded by the state insurance guaranty funds in the event the surplus lines insurer should become insolvent. The states do not audit the finances or review the solvency of surplus lines insurers.

Should you have any questions regarding our compensation for your specific insurance placement or more generally regarding our compensation, please feel free to reach out to your CoverWallet agent for more information.