Compensation Disclosure – Orion Financial Services LLC
Effective [April 1 2025]
Orion Financial Services LLC is committed to transparency in how we are compensated for the insurance products and services we offer. This notice outlines how we earn compensation and the related disclosures required under the laws of the states in which we operate—Connecticut, New York, South Carolina, and Florida.
How We Earn Compensation
We may act as either an agent for an insurance carrier or a broker representing you, the client. Our compensation depends on the role we assume:
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As an Agent: We represent the insurer and receive compensation directly from them for placing coverage.
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As a Broker: We represent your interests, sourcing coverage from authorized carriers. In these cases, we may charge a broker fee as allowed by law.
We receive compensation in the form of commissions, performance-based incentives, and in some cases, service or policy fees, all of which will be disclosed in accordance with applicable state laws.
Commission & Fee Structure
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Standard Commissions: Most insurance companies pay us a percentage of the policy premium as commission. These rates vary by carrier and product type and are built into your premium.
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Adjustable Commissions: For policies subject to audit (e.g., workers’ compensation), commissions may adjust based on actual exposure or premiums earned by the carrier.
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Performance Bonuses: We may receive additional compensation based on factors like volume, profitability, or client retention. These do not affect your policy price.
State-Specific Fee Disclosures
Connecticut
Under Conn. Agencies Regs. §§ 38a-707-1 to 38a-707-9, agencies may charge policy fees up to $75 for most personal and commercial lines. All fees must be disclosed in writing and agreed upon prior to policy binding. Additional service fees may be charged only as allowed by the Connecticut Insurance Department.
New York
Per N.Y. Ins. Law § 2119, any compensation not included in the premium must be disclosed via a written agreement, signed by the customer before services are rendered. Broker fees for personal lines usually do not exceed $50, unless otherwise agreed. We will always provide written disclosure when fees apply.
South Carolina
Under S.C. Code Ann. § 38-43-410, agencies may charge reasonable policy fees to cover administrative expenses, typically not exceeding $100 for personal lines. These fees must be disclosed to the client in writing prior to policy issuance.
Florida
In Florida, agents and agencies may charge reasonable service fees only on policies not subject to regulation under Florida Statutes § 626.9541 (Unfair Trade Practices). Any service fee must be:
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Reasonable and clearly disclosed
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Not included in the premium
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Subject to written consent from the customer
Florida prohibits excessive or undisclosed fees and may require documentation of the purpose of such fees upon audit.
Additional Compensation Details
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Policy Fees: If charged, fees will be outlined in your proposal and conform to the legal limits of your state.
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Service Fees: May include charges for administrative services like document retrieval, claims support, or endorsement processing—only where legally permissible, and with your consent.
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Agency-Billed Policies: If you pay us directly, we may earn interest on funds held prior to remittance to the carrier. Interest due on late payments: Late payments may incur interest charges as allowed by state law.
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Referral or Co-Brokered Business: In some cases, we may receive or pay compensation when referring or co-brokering policies with other licensed agents, in compliance with state regulations.
Non-Monetary Compensation
We may occasionally receive small non-monetary benefits from carriers or vendors, such as meals, event invitations, or branded items. These do not influence our placement decisions, and we comply with ethical guidelines in all interactions.
Requesting a Compensation Breakdown
You are entitled to request a detailed summary of the commission and/or fees we earn on your policy. Please contact us at any time to receive this information.
If you have questions or need more details about how we are compensated, please feel free to contact us. You may also check our website for updates, as this document provides a general overview and may not cover all specific scenarios.