Dear Clients and Prospects:
The State of New York and many other states require that Insurance Producers and Agencies disclose how they are compensated by Insurance Companies. William A. Smith & Son, Inc. and its affiliates and subsidiaries receive various forms of compensation or commission from the insurance companies we place insurance policies with. Below is an outline of this compensation. More detailed information is available if you require it, pursuant to the Insurance Department Regulations.
This information is provided pursuant to New York State Insurance Department Regulation 194 (11NYCRR30.3).
- Compensation. Based on the sale of the insurance selected by you (“the purchaser”), the total compensation expected to be received by Smith William A & Son Inc. , Orange Benefits Partners or William A. Smith & Son Insurance Agency, LLC (“the producer”), including by any parent, subsidiary or affiliate of the producer, is as follows:Known Compensation. The producer (including any parent, subsidiary or affiliate of the producer) expects to receive a percent of the one-year premium you pay on this policy.Estimated unknown additional compensation. Based on some sales of insurance, the producer (including any parent, subsidiary or affiliate of the producer) may be eligible to receive additional compensation depending on a number of factors including premium and policy volume, losses and profitability. If an estimate appears below, the sale of the insurance selected by the purchaser may help the producer (including any parent, subsidiary or affiliate of the producer) qualify to receive additional compensation, the exact amount of which is unknown at this time. Unknown compensation is estimated to be 0% to 3%.
- Producer prohibited from rebating compensation. There are a number of sections of the Insurance Law that pertain to rebating and inducements and each has specific applicability to different kinds of insurance. Collectively those provisions prohibit an authorized insurer, licensed insurance producer, or any person acting on behalf of any such insurer or insurance producer from directly or indirectly paying or offering to pay an insured any rebate from the insurance premium specified in the insurance policy or contract, or giving or offering to give any valuable consideration or inducement, not specified in the insurance policy or contract.
- Material Ownership. The insurer issuing the insurance contract to the purchaser (including any parent, subsidiary or affiliate of the insurer) has material ownership interest in the producer (including any parent, subsidiary or affiliate of the producer), as follows: None