Fireman's Fund Insurance Companies (Fireman's Fund) sell insurance products through licensed insurance agents and brokers. The following is a general overview of our compensation arrangements. Additional information may be available from your agent or broker.
 
Standard Commissions: Fireman's Fund usually pays agents or brokers a commission for each insurance policy they sell. We refer to this commission as "standard commission", and they may also be referred to as base commissions.  Standard commission is generally a percentage of the premium charged on the policy. This percentage will vary depending on the coverage (e.g. home, auto, package) and type of insurance being sold (e.g., commissions on personal insurance products will vary from commercial insurance products). Standard commission can also vary depending on the size or complexity of the insurance being sold.

Fees charged by Agents/Brokers: In some insurance sales, an insurance agent or broker might charge the customer a fee for services provided beyond those normally provided by the agent or broker for the placement of insurance. In other instances (generally highly specialized or difficult to place insurance), the agent or broker, where allowed by applicable law, may charge the customer a fee in lieu of receiving standard commission. Also, it is not uncommon for agents and brokers to share the standard commission with other agents or brokers who assist in the placement of the insurance.

Incentive Compensation Payments: Some of the agents and brokers who place business with Fireman's Fund may also be eligible to receive incentive compensation payments. While these types of payments are common in the insurance industry, some agents and brokers choose not to accept incentive compensation from insurance companies.

Fireman's Fund calculates incentive compensation based on either the entire volume of business that the agent or broker placed with us, or on a specifically identified portion of that business. Our incentive compensation payments are not based on the performance of any individual customer's policy.

For agencies qualifying for incentive compensation, the results of the agent's or broker's eligible business are reviewed at year-end. If the agent or broker has met its pre-established minimum premium requirements, incentive compensation payment will then be calculated depending on the growth and profitability of the business.

Additional Payments: At times, Fireman's Fund may give its agents or brokers complimentary items of nominal value in connection with promotions of new products or programs. We may also give agents or brokers the opportunity to participate in sales contests; promotions or other sales based incentive programs. Annually, Fireman's Fund rewards its top-producing agents through a recognition trip. Fireman's Fund also may pay for business meals with and other entertainment expenses for agents or brokers that are customary in most business relationships.

Heritage Rewards: Through our Heritage Program® participating independent insurance agencies are able to direct grants to fire departments based on the growth of their business with Fireman's Fund. It's our way of giving back to the communities where we are growing. Along with the grant dollars, Fireman's Fund provides a range of marketing support for each grant that is tailored to support the agency's business goals

> For more information on our Heritage Program

Summary Only: This overview provides information about how the Fireman's Fund group of insurers compensates agents and brokers. If you would like additional information about the commission paid on your policy, please contact your agent or broker.