AssuredPartners Colorado (AP CO), as one of the premier risk management property & casualty and
employee benefit providers in the Rocky Mountains and throughout the United States wants to thank you
for engaging our organization. AssuredPartners agencies are licensed as insurance producers by the
various States where we are transacting insurance, which includes the sale, solicitation, and servicing of
insurance business, as well as advising on the relative benefits of certain insurance policies and risk
management programs. Our agencies typically receive compensation from insurers in the form of
commissions paid as a percentage of the premiums due the applicable insurance companies.
Commissions can vary by insurance company, by volume of business placed with that company or the
profitability thereof, and other factors. In other cases, and depending on various State laws and the
capacity in which our agency is acting, our agencies may receive other forms of compensation from
insurers, insurance intermediaries, premium finance companies and other vendors; such as contingents,
overrides, profit-sharing, premium finance fees, expense reimbursements, producer subsidies, award
trips, meetings and other incentives. We also earn interest on premiums we hold until it is time to pay the
applicable insurance companies. Further detail is provided below.
Commission Income: Commission, calculated as a percentage or as a flat rate is paid by the insurer to
distribute and service your insurance policy. Our commission is included in the premium your organization
pays. Individuals at AP CO who place and service your insurance may be paid compensation tied to this
Contingency Income: AP CO also receives income through contingency arrangements paid by insurers.
They are called “contingent” because to qualify for payment AP CO normally needs to meet certain
criteria. This criterion is primarily related to providing better service and underwriting which benefits both
our clients and the insurance companies. For this reason, the individuals involved in placing or servicing
insurance are rarely, if ever, compensated directly for the contingent income that we receive. In addition,
these contingency payments are tied to the overall relationship with an insurance company and thus we
cannot measure the impact that a single client may have on any contingency payment.
Supplemental Commission: Some insurance companies have recently replaced contingent commissions
with supplemental commissions. These amounts paid by carriers follow the same overall process as
contingency income but are normally determined in a prior year and are paid as a percentage of total
premiums placed with a carrier in subsequent years.
Fees Paid by Clients: When agreed to in writing by our clients a fee may be negotiated for placement of
insurance coverage or additional services.
Other Compensation and Benefits: AP CO may receive revenue or further benefits from our insurance
brokerage activities in other ways. This includes insurance company promotional events, promotional
marketing and/or employee training and development, fees or a percentage of the interest paid to us for
the administration of premium finance contracts, interest paid to us by financial institutions earned on
fiduciary or trust accounts, and other compensation paid by third party companies.
Our overriding desire is to provide great customer service, having you, the customer, believe we have
earned our compensation. We believe in full disclosure of our compensation. Accordingly, if you have
any questions about the compensation we receive from your policies (including policies we propose to
you), please just ask your account representative, who will gladly provide you a summary of our
compensation arising from your policies (some estimation may be necessary, for example where
contingents are involved).
We thank you for the opportunity to serve and appreciate your interest.