How our distributors are compensated
The following information is provided to help you understand how we compensate the distributor that sells insurance to you.
CTM provides our insurance products through two types of distributors: brokers and dedicated sales agents. Some of our distributors are paid a commission. Commissions are paid at a different percentage depending upon the type of policy purchased.
Brokers are independent businesses representing several insurance companies. Commissions currently paid to brokers by CTM are as follows:
Agents are employees of CTM, some of them are paid a salary, and some of them are paid a commission. Commissions currently paid to agents by CTM are as follows:
• 3-8% for Private Passenger & Commercial Automobile Insurance
• 8-20% for Personal and Commercial Property Insurance
In addition, CTM contributes to a matching pension for agents and provides some health and other employment benefits.
If you ask them, our agents and brokers have a duty to tell you the commission being paid on your insurance policy.
Compensation to brokers and agents also includes a performance bonus which we refer to as contingent commission. The formulas to calculate contingent commission include claims costs, policy retention, and continuing education requirements. Contingent commission is not guaranteed, and is averaged over an extended period of time, usually three years.
CTM does not offer any other form of compensation, remuneration, loans, servicing fees to any brokerage or agency that distributes our insurance products.