The commission ranges set forth below are applicable to all Fire Insurance Policies, which may include the following coverages: Excess Crime, Boiler and Machinery, Difference in Coverage, Standard Multiple Peril, Commercial Property, Personal Property, Wind, Builders Risk, and Warehouse Legal.

The ranges are based on the commissions paid for all Fire Insurance Policies. Commissions paid on any particular policy of insurance are based on a variety of factors and there may be dollar amounts or percentage commissions paid that fall outside of the ranges referenced below. 

Your insurance broker or independent insurance agent can provide additional information about specific compensation they may receive in connection with the issuance of your policy.

• • Low
  • Mid
  • High
  • 5%
  • 20%
  • 25%

Additionally, 90% of commissions paid on products within this line of business fall within the following range.

• • Low
  • Mid
  • High
  • 10%
  • 20%
  • 25%

• • Low
  • Mid
  • High
  • 1%
  • 25%
  • 25%

Additionally, 90% of commissions paid on products within this line of business fall within the following range.

• • Low
  • Mid
  • High
  • 1%
  • 25%
  • 25%

The commission percentages shown represent business written during the year ending December 31, 2007, and are updated annually. The ranges shown may not reflect historic commission rates for all in force policies and do not include policies issued after December 31, 2007. Transactions with no commission have been eliminated from the data used to prepare these ranges because insurance producers may have received compensation directly from the insured.

AIG Companies may also have reimbursed certain expenses of insurance producers who act as program administrators, including but not limited to, advertising and marketing expenses, costs of software and systems upgrades, loss control services, and certain other underwriting expenses.  In 2007, these payments represented less than 1% of the total premium placed by these insurance producers during the calendar year.

In addition to the commission percentages reflected above, independent insurance agents in Puerto Rico may also receive contingent compensation on the products listed above for certain eligible policies. Contingent compensation is typically based on criteria such as the volume of new sales, overall production volume, persistency, or overall profitability of the policies placed by the independent insurance agent. In 2007, contingent compensation paid on the eligible policies ranged from 0 – 5% of the total premium placed by these insurance producers during the calendar year.

Independent insurance agents in Puerto Rico may also have been reimbursed certain underwriting expenses.  In 2007 these payments ranged from 0 - 7% of the total premium placed by these independent insurance agents during the calendar year.