Disclosure of Compensation
We Will Receive in Connection with Your Policy

The Hirshorn Company is an “insurance producer” licensed by the Commonwealth of Pennsylvania as well as most other states. Insurance producers are authorized by their licenses to confer with insurance purchasers about the benefits, terms and conditions of insurance contracts; to offer advice concerning the substantive benefits of particular insurance contracts; to sell insurance; and to obtain insurance for purchasers. The role of the producer in any particular transaction typically involves one or more of these activities.

The Hirshorn Company typically receives “standard commission” from insurance carriers, which is paid when the policy is written and is a specific percentage of premiums. Different carriers pay different percentages. Commissions also vary by type of coverage. In general, these “standard commissions” average around 11% of premium. Sometimes we charge fees in lieu of commissions.

The Hirshorn Company also receives “contingent commission” payments from some of the insurance carriers we represent in addition to the standard commission payments. These contingent commissions are based on various targets (e.g., profitability, retention, growth, total premium volume) set by the carriers. These arrangements are also termed “profit sharing” or “bonus” payments. Each carrier's plan is different, but these contingent commissions are all back-end payments and depend upon reaching that company’s pre-set objectives. The “contingent commissions” are not guaranteed, vary greatly from year to year, and are paid anywhere from 45 to 180 days after the end of a calendar year. They average around 1% of premium.

We receive various gifts, meals, prizes, and awards and other miscellaneous bonuses from carriers, and these represent less than 0.1% of premiums.

Finally, we do own stock in various businesses, including two insurance companies, AIG and Chubb. We feel this has no material affect on premiums paid by any client.

If you would like additional information about any of the compensation we will receive in connection with your policy or your account, please contact your agent here at The Hirshorn Company.