Compensation Disclosure

At M3 Insurance, we strive to be your trusted business partner. It’s important that you feel comfortable working with us and that we play an active role in helping you meet your business goals. It’s also important that you’re comfortable with how we’re compensated for the services we provide.

To obtain a clearer picture of our compensation, please review the information below. For additional explanation or a summary of the compensation we receive from our partnership with you, please contact your M3 account executive.

Common Methods of Compensation
How we’re compensated depends upon the agreement we have with each client, insurance carrier and provider. The two most common methods of payment are:

1. Commission
   • a broker may receive a commission from an insurer on the placement of insurance. This is generally calculated as a percentage of premiums as quoted by an insurer.
2. Broker Fees
   • a client may prefer to pay a fee in lieu of, or in addition to, commission. In many cases, client agreements allow for a combination of commission and fees.

Additional Methods to Consider
Consulting agreements come into play when clients ask us to provide guidance or advice on specific topics. The answers they’re seeking may fall outside our normal scope of services. In those situations, consulting agreements can be provided to meet the clients’ particular needs.

Some carriers may offer insurer incentives or bonuses to brokers for placing quantities of business or quality of risk with their company. Of utmost importance to us is finding the right insurance carrier to meet clients’ needs, not ours. So while we do accept these payments, two parameters are firmly in place to ensure client needs come first:

• No sales reward – our account executives are not rewarded for placing business with specific insurers. They are only rewarded for their ongoing relationship with clients.
• No knowledge – our account teams are shielded from knowledge of insurer incentives. We don’t want financial rewards driving the advice we provide clients, so we take knowledge of such payments out of the equation. If we meet a carrier incentive, it’s because that carrier is providing a product that our clients want, not because we directed business to that carrier.

Fees and Interest
Finally, if clients choose to pay their fees in installments, there may be administrative fees and/or interest associated with the installment payment. M3 may earn interest on premium deposits until payment is remitted to the insurance carrier.