Group Benefits Disclosure Policy
Transamerica Employee Benefits is the worksite marketing unit of Transamerica Life Insurance Company and Transamerica Financial Life Insurance Company (collectively “Transamerica”). Transamerica markets and administers voluntary insurance benefits through a network of independent insurance agents who are appointed to sell Transamerica products and those of other carriers. Agents receive various forms of compensation from Transamerica for the sale and servicing of its policies. Transamerica’s compensation arrangements with its agents are conducted with honesty, fairness and integrity, and Transamerica realizes that having trusted relationships with its agents and customers is essential. In order to ensure that this trust continues, and to address agent compensation issues within the insurance industry, Transamerica has outlined its policy on agent compensation disclosure below.
Transamerica’s policy supports transparency and full disclosure of agent compensation to its customers and prospects. In addition, we have controls in place to facilitate this disclosure and obligate our agents to disclose compensation information to customers in the following situations: (1) when asked by a customer; (2) when receiving a fee from the customer and compensation from Transamerica; and (3) when otherwise required by law. Agents must comply with all applicable laws in the sale of Transamerica products, including those pertaining to the disclosure of compensation information.
The Group Benefits Compensation Disclosure Notice (below) of Transamerica Employee Benefits (Transamerica Employee Benefits) describes the various means by which agents may be compensated for the sale of Transamerica products. It is the responsibility of your agent to share specific information with you concerning his or her compensation arrangements with Transamerica. Accordingly, please direct any compensation disclosure questions directly to your agent.
Compensation Disclosure Notice to All Policyholders
Agents selling and servicing our products are paid a commission, which varies by the type of insurance policy sold and the state where the policy was sold, and is based on a percentage of the premium received in the first year, and at policy renewal. Agents may receive advances or loans against anticipated commissions for cases sold or to be sold. These advances may or may not require the payment of interest, depending upon the agent's total business and historical experience with Transamerica Employee Benefits.
Agents may receive other compensation, in the form of cash or non-cash awards or prizes, based upon a variety of factors that may include the level of premium written or earned, the persistency and growth of premium, or other performance measures. Agents who manage, supervise or recruit other agents or wholesale our products and services to other agents, may receive commission overrides on business that results from their efforts.
Some of our agents may receive additional payments for administrative services provided in connection with certain of Transamerica’s products. Fees for these services may be calculated on a per-policy or per-certificate basis or upon the premium volume associated with a specific case. In addition, Transamerica Employee Benefits may reimburse these agents/administrators for certain expenses, such as the cost of mailings.
On occasion, agents may obtain exclusive rights to market Transamerica products or services to agents, employers, employees or association members. Certain groups or associations may also agree to endorse Transamerica's products to their members. Transamerica may pay a fee for these exclusive marketing rights or endorsements. See your proposed plan documents or policy certificate package for more information on any such arrangements.
For up-to-date information regarding Transamerica Employee Benefits’ compensation practices, please consult our website at www.transamericaemployeebenefits.com. Thank you.