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Producer Compensation

Broker and Independent Agent Compensation

Insurance brokers and independent insurance agents* play a vital role in the insurance purchasing process. AIG Commercial and Personal Insurance values the role of these insurance producers in advising and consulting with insurance buyers and generally compensate them in recognition of their participation in the purchasing process. Please contact your insurance broker or independent insurance agent to obtain information about the specific compensation they may receive in connection with the issuance of your policy.

AIG Commercial and Personal Insurance supports the disclosure of compensation paid to insurance brokers and independent insurance agents. This information can help our customers make informed purchasing decisions.

Please read Important Information on compensation to insurance brokers and independent insurance agents placing commercial and personal insurance business with AIG Commercial and Personal Insurance offices situated and issuing insurance policies in the United States. This webpage includes guidance for business written in 2020 on the following:

*References to “insurance brokers” and “independent insurance agents” are based on those terms as defined in §§ 2101(c) and (b) of the Insurance Law of the State of New York.

AIG Commercial and Personal Insurance companies compensate insurance brokers and independent insurance agents through commissions of either a specific dollar amount or a percentage of premium set at the time of each purchase, renewal, placement or servicing of a particular insurance policy. Beginning in 2011 amendments to the settlement between AIG and the New York Attorney General allowed AIG greater flexibility concerning payment of compensation to insurance producers in addition to commissions negotiated at the time of individual insurance transactions. From time to time, AIG Commercial and Personal Insurance may enter into agreements with producers to provide additional commission not contingent in nature. All such payments are subject to controls administered by AIG Commercial and Personal Insurance Legal, Compliance and business management.

AIG Commercial and Personal Insurance companies may also pay contingent compensation to insurance brokers and independent insurance agents. Contingent compensation may be paid in addition to commissions of a specific dollar amount or a percentage of premium set at the time of a purchase, renewal, placement or servicing of a particular insurance policy. Beginning in 2011 amendments to the settlement between AIG and the New York Attorney General allowed AIG greater flexibility concerning payment of compensation to insurance producers, including contingent compensation in addition to commission. Contingent compensation is typically based on criteria such as the volume of new sales, overall production volume, persistency, or overall profitability of the policies placed by an insurance broker or independent insurance agent. All such payments are subject to controls administered by AIG Commercial and Personal Insurance Legal, Compliance and business management.

AIG Commercial and Personal Insurance companies may also have reimbursed certain expenses of insurance brokers and independent insurance agents that place personal lines business and insurance producers that act as program administrators, including but not limited to, advertising and marketing expenses, costs of software and systems upgrades, loss control services and certain other underwriting and/or claims expenses. They may also have provided insurance brokers and/or their employees the opportunity to receive additional incentive compensation for placing certain types of policies. This incentive compensation has been both in the form of sales contests where cash or other prizes were awarded and in the form of additional commissions. Beginning in 2011 amendments to the settlement between AIG and the New York Attorney General allowed AIG greater flexibility concerning payment of compensation to insurance producers, including non-contingent compensation in addition to commission and contingent compensation. AIG may also enter into agreements to access information feeds or cause strategic interaction to facilitate business in exchange for a fee. Outside of specific insurance transactions, AIG may also obtain services for which it pays a fee. All such payments are subject to controls administered by AIG Commercial and Personal Insurance Legal, Compliance and business management.

You can view information on the ranges and types of compensation paid to insurance brokers and independent insurance agents relative to the lines of business written by the AIG Commercial and Personal Insurance companies by choosing the appropriate link (at top).