What format or content must be included in the written compensation disclosure?
There is no specific format required but the law establishes what must be contained in the disclosure. Insurance producers are urged to carefully review the applicable laws and rules for the specific requirements and comply with them. Summarizing, the compensation disclosure must be in writing and, for each policy, include the following information: 1. The full amount of the fee the insured will pay; 2. The full amount of any commission paid to the insurance producer by the insurer, if there is a commission; 3. An explanation of any offset or reimbursement of fees or commissions; and 4. When the insurance producer may receive additional future commission, such as contingent commissions, the disclosure must state: a) The insurance producer may receive additional commission in the form of future incentive compensation from the insurer, including contingent commissions and other awards/bonuses; b) Upon request, the insurance producer will furnish the insured or prospective insured with sp
