Broker Compensation
Algoma Mutual has contracts with independent Brokers.
Commissions
Brokers are compensated in the form of a commission payment calculated as a percentage of your insurance premium. Brokers are obligated to disclose their commission earnings on a client's policy, if so requested.
The following is a breakdown of the commissions paid by Algoma Mutual to contracted Brokers:
| Private Passenger Automobile |
12.5% |
| Commercial Automobile |
12.5% |
| Snowmachines and ATVs |
10.0% |
| Residential and Personal Property |
20.0% |
| Commercial Property |
20.0% |
| Farm Property |
17.5% |
Contingent Profit Commisions (CPC)
As part of our brokerage contract, we recognize Broker profitability through a Contingent Profit Commission (CPC) program. Receipt of a CPC payment is entirely dependent on the overall profitability of the business submitted by a Broker. Therefore, this commission is not guaranteed to any Broker.