Producer Compensation Disclosures

This page provides you with two Producer Compensation Disclosures. They are:

• Harrington Insurance Agency, Inc. Producer Compensation Disclosure
• Arbella/Covenant Producer Compensation Disclosure

Harrington's Producer Compensation Disclosure

This notice is intended to disclose how Harrington Insurance Agency, Inc. ("Harrington Insurance" or "We") and your individual salesperson are compensated for selling insurance.  We are a licensed insurance agency owned and operated by Arbella Insurance Group which makes us a "captive agency" in the marketplace.  Arbella Insurance Group ("Arbella") is comprised of a number of affiliate insurance companies licensed to write business in Connecticut, Massachusetts, Rhode Island and New Hampshire. Arbella writes insurance in Connecticut through Covenant Insurance Company, its wholly owned subsidiary. We also sell insurance through a number of other highly respected companies.

There are a number of ways Harrington and its employees are compensated for selling insurance. They are described as follows:

Salary. Our employees are paid a salary from Arbella.

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

Contingent Commission. We and our employees may participate in contingent commission programs offered by the various insurers. Eligibility for, and the amount of, contingent commission depends upon a producer's ability to meet certain production, growth, profitability or other quality and performance objectives established by the various insurance carriers.

Other Payments, Benefits and Compensation. We and our employees may receive other payments, benefits and compensation from the various carriers, which may also depend on the producer meeting production and other performance objectives established by the specific carrier and/or Arbella. These other payments, benefits and compensation may include:

Individual Producer Incentive Awards:
Our individual producers may receive incentives for placing business with certain carriers. These incentives may be in the form of cash or non-cash awards paid directly to the producer based on the number of policies written or other performance objectives established by the insurance carriers. Since Harrington Insurance is owned 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 from all carriers.

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

If you have any questions, please contact your producer.

Arbella/Covenant Producer Compensation Disclosure

This notice is intended to disclose how Arbella Insurance Group ("Arbella") compensates its captive producers for selling insurance.  Arbella is comprised of a number of affiliate insurance companies licensed to write business in Connecticut, Massachusetts, Rhode Island and New Hampshire. Arbella writes insurance in Connecticut through Covenant Insurance Company, its wholly owned subsidiary.  When "Arbella" is used in this notice it is intended to include the member insurance companies who underwrite policies on behalf of the Group. 

There are a number of ways captive agencies and its employees are compensated for selling insurance. They are described as follows:

Salary. The 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 placed with a carrier. 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 or 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 producer qualifies under the rules set forth 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. Certain producers may receive 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 may receive incentives for placing business with certain carriers. These incentives may be in the form of cash or non-cash awards paid directly to the producer based on the number of policies written or other performance objectives established by the insurance carriers. Since captive agencies are owned 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 from all carriers.

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

More Information. This is a summary and overview of how Arbella usually compensates its captive agencies and 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 individual producer. If you want more information about how Arbella compensates its independent insurance agencies and producers, please go to www.Arbella.com for more information.

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.
• Bearingstar Insurance, Inc.
• Harrington Insurance Agency, Inc.