Compensation Disclosure

BASE COMMISSION 
Hugh Cotton Insurance and its affiliated companies sells insurance products through an extensive network of insurance companies, wholesalers and Lloyds of London.

Hugh Cotton Insurance is compensated on a sales commission basis. The percentage of compensation varies from company to company and by product line.

The compensation percentage is filed by the insurance company with state regulators and is included in the rate approved by the Department of Insurance.

There is no “mark up” or “add on” as we are bound by law to deliver to the client the exact rate quoted by the insurance company.

CONTINGENT COMMISSION
Contingent commission, sometimes referred to as bonus or profit sharing, is offered by some insurance companies to agents who qualify.

The purpose of contingent commission is to encourage agents to select good risks, monitor and manage claims, retain good accounts and grow premium volume.

Volume, growth, retention and profitability are largely beyond the control of the agent and cannot be predicted.