Compensation Disclosure

Arbella Mutual Insurance Company Director and Executive Compensation
Policies Purchased Through an Independent Agent
Policies Purchased Through an Arbella-Owned Insurance Agent

Arbella Mutual Insurance Company Director and Executive Compensation

A statement of compensation paid to the directors and certain executives of Arbella Mutual Insurance Company for the most recently concluded year is available to Arbella Mutual policyholders here.

Agent Compensation

This notice is intended to disclose how the members of the Arbella Insurance Group ("Arbella") compensate their licensed brokers and agents ("producers") for selling and servicing insurance on their behalf. This document will provide an overview of the types of compensation paid to these producers.

For Policies Purchased through an Independent Agent

Base Commission. Arbella generally pays producers a base commission for the sale and service of new and renewal policies sold on behalf of Arbella. The base commission is usually a fixed percentage of the policy premium. The percentage Arbella pays may vary depending on certain factors such as the type of product, risk classification, producer size, state where the risk is located or services provided to the policyholder.

Guaranteed Supplemental Compensation. Arbella may pay guaranteed supplemental compensation which consists of an additional commission percentage on eligible business. Such compensation programs vary by line of business or time frame. This type of commission is guaranteed as long as the agent qualifies under the rules set by Arbella for that particular compensation program. The percentage a producer can earn is predetermined at the beginning of the program and usually remains fixed for all policies written during the program year or term.

Contingent Commission. Arbella may pay producers contingent commissions. Eligibility for, and the amount of, contingent commission we pay depends upon a producer's ability to meet certain production, growth, profitability or other quality and performance objectives established by Arbella. Such compensation may be in the form of cash or services. Sometimes it involves incentive trips or prizes.

Other Payments, Benefits and Compensation. Arbella may pay certain producers other payments, benefits and compensation which may also depend on the producer meeting production and other performance objectives established by Arbella. These other payments, benefits and compensation may include:

Marketing and Other Support:
Arbella may pay subsidies for a producer's marketing efforts and/or other business goals. These payments may include, but are not limited to, items such as continuing education, training expenses, lead generation services, advertising assistance, training, sales and business meetings or other services that help to promote us and our products.

Other Compensation:
Arbella may pay producers complimentary items of nominal value. Arbella may also pay for meals or other entertainment expenses. Also, a small number of producers have outstanding loans from Arbella or another company owned by Arbella. The loan agreements may include volume and/or profit based incentive provisions which may reduce the amount of principal and/or interest payable under the loan.

More Information. This is a summary and overview of how Arbella usually compensates its producers. Because this is only an overview, there may be exceptions or details not addressed in this disclosure. For specific details about compensation relating to your policy, please contact your producer.

For Policies Purchased through an Arbella-Owned Insurance Agent

This notice is intended to disclose how the members of the Arbella Insurance Group ("Arbella") compensate their Arbella owned agencies and producers ("producers" or "employees") for selling and servicing insurance on behalf of those members. These producers work for an agency owned, in whole or in part, by Arbella. These agencies do business under an different agency name but represent themselves as a member of the Arbella Insurance Group. This notice will provide an overview of the types of compensation paid to these producers.

Salary. Our employees are paid a salary from Arbella.

Base Commission. Producers are generally paid a base commission for the sale and service of new and renewal policies sold on behalf of Arbella. The base commission is usually a fixed percentage of the policy premium. The percentage Arbella pays may vary depending on certain factors such as the type of product, risk classification, producer size, state where the risk is located or services provided to the policyholder.

Contingent Commission. Arbella may pay producers contingent commissions and producers may participate in contingent commission programs. Eligibility for, and the amount of, contingent commission we pay depends upon a producer's ability to meet certain production, growth, profitability or other quality and performance objectives established by Arbella. Such compensation may be in the form of cash or services. Sometimes it involves incentive trips or prizes. Other Payments, Benefits and Compensation. Arbella may pay certain producers other payments, benefits and compensation which may also depend on the producer meeting production and other performance objectives established by Arbella. These other payments, benefits and compensation may include:

Individual Producer Incentive Awards:
Our individual producers or agencies may receive incentives for placing business with Arbella or with certain other insurance companies. These incentives may be in the form of cash or non-cash awards paid to the producer or the agency based on the number of policies written or other performance objectives established by the insurance carriers. Since these producers and agencies are owned or employed by Arbella, Arbella pays such awards or compensation by evaluating the quantity and quality of the Arbella business sold and then by evaluating the total quantity and quality of business sold for all insurance companies.

Marketing and Other Support:
Arbella may pay subsidies for a producer's marketing efforts and/or other business goals. These payments may include, but are not limited to, items such as continuing education, training expenses, lead generation services, advertising assistance, training, sales and business meetings or other services that help to promote us and our products.

For specific details about compensation relating to your policy, please contact your producer.

Insurance Company and Agency members of the Arbella Insurance Group:

  • Arbella Mutual Insurance Company
  • Arbella Protection Insurance Company, Inc.
  • Arbella Indemnity Insurance Company, Inc.
  • Covenant Insurance Company
  • Commonwealth Reinsurance Company
  • Commonwealth Mutual Insurance Company
  • Arbella Specialty Insurance Brokerage, Inc.
  • AllGuard Insurance Agency, Inc.
  • Bearingstar Insurance, Inc.
  • Harrington Insurance Agency, Inc.