Contingent Income Disclosure Statement

There has been much discussion about placement fees and profit sharing arrangements (contingents). Placement fees, which are paid simply for putting a piece of business with an insurance carrier, create a conflict of interest. FCJK does not accept placement fees.

Contingents are based on profitability of an insurance agent’s book of business with an insurance carrier and serve to make the agent even more proactive in trying to reduce the customer’s long-term total cost of risk.  FCJK accepts contingent income from our insurance carriers.

It is to the client’s advantage that an agency has an incentive to ensure that their book with any given insurance carrier is profitable. A large profitable book of business with an insurance carrier enables the agent to negotiate better terms and conditions for the insured.