Talcott Resolution sells its traditional insurance products and services through insurance agents and brokers, commonly referred to as "producers." These producers are generally not our employees. Producers also include firms that we engage to sell our traditional insurance products, such as broker/dealers. Talcott Resolution compensates producers for the sale and service of its products. A producer may receive one or more of the below payments, depending on the producer's business relationship with us. Compensation arrangements pertaining to our variable insurance and non-insurance products are more particularly described in our prospectuses.
Producers are generally paid a base commission for the sale and service of new and renewal policies placed with us. The base commission is usually a fixed percentage of the policy premium. The percentage may vary depending on certain factors such as the type of product, risk classification, producer size, state where the risk is located or services provided to the policyholder.
Certain producers may participate in contingent commission programs we offer. Eligibility for, and the amount of, contingent commission depends upon a producer's ability to meet certain production, growth, profitability or other quality and performance objectives established by us. Contingent commission is not offered for all products and lines of business. For example, contingent commission is not offered in our terminal/maturity funding group annuity line of business.
Certain producers may receive other payments, benefits and compensation from us, which may also depend on the producer meeting production and other performance objectives established by us. These other payments, benefits and compensation may include:
We may provide individual producers and licensed customer service representatives employed by an agency with incentives for placing business with us. These incentives may be in the form of cash or non-cash awards based on the number of policies written or other performance objectives established by us. Awards of this type are not available for all products and lines of business. For example, these individual producer awards are not made in connection with the sale of variable products.
We may pay for or subsidize a producer's marketing efforts and other business goals. These payments may include, but are not limited to, items such as continuing education, training expenses, lead generation services, advertising assistance, sales and business meetings or other services that help the producer promote us and our products.
We may provide certain producers with other benefits, including, but not limited to, entertainment, tickets to sporting events, travel, gifts, branded merchandise, and attendance at corporate-sponsored programs, including accommodations, meals and gratuities.
We may enter into relationships with producers to receive services in addition to those typically provided by a producer. In these instances, it may be appropriate for us to pay service fees to the producer. These fees may include, but are not limited to, specific administrative service fees.
In certain circumstances, we may advance commission or incentive payments to a producer or make a loan to a producer. These advances and loans may be made interest free or at a below-market interest rate and repayment may be offset against future earned compensation or forgiven based on achievement of production or other performance objectives established by us.
Interest earned on premiums collected by producers and placed on deposit before having to be paid to us are generally retained by the producer, as permitted by law.