Disclosure Policy

Disclosure Policy


Compensation Policy

Agent or broker commissions are customarily paid by the insurance carrier as a percentage of the premium. In addition to compensation received for such services, the brokerage firm, or a related entity, may also receive interest on fiduciary funds and compensation for additional services provided to either the client or the insurance carrier. To the extent such compensation exists, it is included in the cost of the insurance offering, unless disclosed otherwise. Additional services could include, but are not limited to: underwriting services, program administration services, loss control services, appraisal services, claims management, and other services provided to either the client or the insurance carrier. While these services are generally included in the cost of the insurance offering, any services contracted for by the client directly will be invoiced accordingly.

With exception the brokerage firm may also receive income as a result of contingent income or supplemental income agreements with insurance carriers, which may include income specifically received for reinvestment in the brokerage’s internal training, external marketing, technology enhancement, and other related items. Exceptions are as follows:

Any client may “opt out” of having the premiums associated with their placements included in any contingent income and/or supplemental agreement that Ideal Insurance Agency may enter into.

The “opt out” form is available by clicking the “opt out” link. The “opt out” provision applies only to those accounts served directly by Ideal Insurance Agency as a retail agent or broker. It does not apply to account placements wherein Ideal Insurance Agency’s role is that of a wholesaler, MGA, or program administrator working with non-Ideal Insurance Agency brokers who represent the client. This information, along with a reply to any other questions on the compensation aspects of a client’s placement, is also available upon written request directed to:

Ideal Insurance Agency
601 Carlson Parkway #1050
Minnetonka MN 55305

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1In general, “contingent income” means additional compensation received from any insurer that is contingent upon the insurance broker: (a) placing a particular number of policies or dollar value of premium with the insurer, (b) achieving a particular level of growth in the number of policies placed or dollar value of premium with the insurer, (c) meeting a particular rate of retention or renewal of policies in force or dollar volume of premium with the insurer, or (d) placing or keeping sufficient insurance business with the insurer to achieve a particular loss ratio or any other measure of profitability.

In general, “supplemental income” means additional compensation received from any insurer for eligible classes of business based upon a prior year’s results that is not contingent upon the “contingent income” criteria identified in footnote 1.

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