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Broker / Agent CompensationAs an insurer, Lanark Mutual Insurance Company has agency contracts with insurance brokers and agents who provide advice and purchase insurance on their client's behalf. We take great care to ensure that our brokers and agents who are under contract will operate to the highest professional standards. They earn their brokerage compensation as part of the insurance premium paid in the form of a commission. Brokers have a duty to disclose their commission earnings on a given policy to their client if so requested. The commissions paid by Lanark Mutual Insurance are:
Contingent Profit Commissions (CPC) As part of our contracts with brokers, Lanark Mutual Insurance recognizes brokers efforts through the potential payment of Contingent Profit Commissions. CPC payments are not guaranteed - and are based on a share of the profitability of business submitted by the broker over an extended period - typically 3 years. Profitability is measured by comparing premium revenue against expenses (eg. claims cost, broker commission, staff salaries and premises costs etc.) Broker Business Loans Lanark Mutual Insurance, from time to time, has provided and will continue to provide secured loans to a small number of brokers for the purposes of succession continuity. We expect these arrangements would in no way impact the advice given to customers but these ownership and financial arrangements should be disclosed by brokers to their clients.
From time to time, as part of normal business practice, we may invite individuals from broker offices to participate in entertainment events. If you have any queries, please write to lmadmin@lanarkmutual.com or contact your insurance broker or agent.
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