Compensation Disclosure for Orion Financial Services LLC
This document explains how Orion Financial Services LLC is compensated for the insurance products and services we offer. Our mission is to provide high-quality insurance solutions, acting either as a broker for our clients or as an agent representing insurance companies.
How Orion Financial Services LLC Earns Compensation
We receive compensation in various ways depending on the role we play:
- As an Agent: We represent insurance companies and assist in placing coverage for our clients.
- As a Broker: We represent you, the client, and help find the best insurance options from authorized carriers in the states where we operate.
Our compensation varies based on factors such as the type of policy, the volume of business we generate, and the profitability of the policies we place. Additionally, we may receive performance-based payments for meeting certain sales goals.
We do not charge for providing quotes, and the cost of preparing these quotes is covered internally unless otherwise specified.
Commission Structure
At times, we earn a commission on the insurance policies we place. These commissions may be adjusted after audits based on the actual coverage details. For example, commissions may increase or decrease depending on the level of coverage used throughout the policy year.
For specific types of insurance, such as worker’s compensation, we may use a sliding scale to calculate commissions. If this applies to your policy, we will provide a clear breakdown in your proposal, outlining how commissions are structured.
In most states, commissions are built into the insurance premium and cannot be legally reduced unless a specific plan has been filed with the state. We do not receive commissions on state surcharges or assessments.
When acting as a broker, any applicable taxes or fees related to your policy will be passed directly to you.
Non-Monetary Compensation
Our staff may occasionally receive small, non-monetary rewards from insurance companies or vendors as part of maintaining good business relationships. These may include business meals, small gifts, event tickets, or travel opportunities. However, we strictly adhere to ethical guidelines to ensure these rewards do not influence how we place your coverage.
You are welcome to request a detailed estimate of the commissions we receive related to your policies.
Policy Fees by State
We may charge policy or service fees depending on state regulations. Below are the specific limits and rules regarding policy fees for Connecticut, New York, and South Carolina:
Connecticut Policy Fees
In Connecticut, policy fees must comply with regulations set by the Connecticut Insurance Department (CID). According to Section 38a-707-1 through 38a-707-9 of the Connecticut General Statutes, agencies may charge a policy fee, but it cannot exceed $75 for most personal and commercial lines. We will always disclose these fees upfront, and they will not exceed the legal limit.
New York Policy Fees
In New York, policy fees are regulated by the New York State Department of Financial Services (NYSDFS). Under Insurance Law Section 2119, fees must be reasonable and disclosed through a written agreement with the customer. For most personal insurance policies, fees generally do not exceed $50 unless otherwise agreed upon. Any fees will be communicated upfront in accordance with New York state law.
South Carolina Policy Fees
In South Carolina, policy fees are governed by Section 38-43-410 of the South Carolina Code of Laws. Agencies may charge a reasonable fee necessary to cover administrative costs, with a typical limit of $100 for personal lines. These fees are disclosed to clients upfront and agreed upon before any policy activity.
Additional Fees
Agency Fees: We may charge fees for additional services related to processing your policy, such as retrieving records or verifying coverage. These fees will not exceed legal limits and will be disclosed before any action is taken on your behalf.
Service Fees: In Connecticut, New York, and South Carolina, service fees may also be applied according to state-specific rules. For example, in Connecticut, service fees are governed by Section 38a-707-1 to 38a-707-9 and vary depending on the nature of the insurance product.
Interest: If you pay our agency directly for your policy (known as “agency-billed” policies), we may earn interest on amounts held before payment to the insurer. We also charge interest on overdue payments for agency-billed policies.
Other Compensation
In rare cases, state law may require us to earn a commission for signing policies issued by agents from other states. We may also offer separate services that are invoiced independently from your insurance products.
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.