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 commission and contingent fees paid by insurers or 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.
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.
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. These criteria are established by the insurers with whom we do business. Given the nature 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.
While some agencies bill service fees in addition to commission income, CoverWallet does not charge any fees for placement of admitted insurance policies. 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.
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.