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How We Compensate Our Producers
CNA Surety
is committed to the insurance producers, the principals and the obligees
that it serves. We work with professional insurance producers, both agents
and brokers to provide superior service and competitive prices. We generally
compensate insurance producers as follows:
Commissions
For each bond that we
write, our insurance producer partner is paid a commission that is based
upon a percentage of the bond premium. That percentage varies based upon
a number of factors some of which are: the type of bond, state of the
bond obligation and contractual arrangements with producers.
Profit
Sharing
In addition to the commissions
discussed above, we pay select producers additional amounts based upon
the volume of premium produced above a minimum threshold in a particular
year. This profit sharing is based upon contractual arrangements with
certain producers. These profit sharing payments are made once a year
and generally are paid based upon the profitability to us of the business
produced by the insurance producer. We determine profitability and the
profit sharing payment based upon our contractual obligations with the
producers. In determining profitability we use criteria which include:
the amount of annual premiums written on business produced by an insurance
producer in connection with specified bond types as well as certain underwriting
expenses such as losses and reinsurance costs incurred in connection with
insurance producer’s business.
If you have questions concerning
the specific compensation that your insurance producer receives from us,
please contact your producer.
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