Group Insurance Producer Compensation

Rewards Program

It Pays to Grow Your Business with Us

Our producer bonus program, Partnership Rewards, offers strong incentives for small business sales as well as large cases, and rewards both new and retained business. To learn more about how the program works, including a guide to graded commission scales, download the brochure for the region where you sell.

Outside of New York State

In New York State Only

Some producers may have a bonus program that differs from the Partnership Rewards program. Please consult with your producer for additional details.

Voluntary Products

Commissions for Group Voluntary Insurance Products

The Standard offers a competitive commission structure that compensates producers for their time and expertise in obtaining new group insurance business. Payments are calculated based on a percentage of the annual premium. Commissions are subject to the terms and conditions of the Producer Sales Contract. The following are our current standard commission scales for our Group Accident, Group Critical Illness and Group Hospital Indemnity insurance products. Scales may vary depending on the policy issue date. The Standard reserves the right to change commission scales.

Accident Insurance

Critical Illness Insurance

Note: Critical Illness insurance is called Specified Disease insurance in the states of New York and Vermont.

Hospital Indemnity Insurance

This product may not be sold in the state of Montana.

Our Principles

Following is a statement of our group insurance producer-compensation principles, which are consistent with our commitment to integrity and ethical conduct in doing what matters for our customers. For these purposes, a producer is defined to mean any broker, representative, agent, general agent or other intermediary through whom The Standard sells its group products or services to a customer.

Statement of Compensation Principles

Bid Rigging

The Standard does not and will not engage in any "bid rigging."¹ This means that the company will not provide a producer with a proposal that includes a false price quote, or knowingly false pricing assumptions. In addition, if the company knows or suspects that the producer has requested a bid for purposes other than to present a legitimate offer to the customer, the proposal will not be provided.

Disclosure and Producer Payment Practices

The Standard will abide by the letter and the spirit of all laws and regulations relating to producer compensation.

All proposals from The Standard will include a disclosure identifying the type of compensation payable (e.g., commissions, fees, contingent compensation², as applicable) and where the customer can obtain complete compensation information.

The Standard will not participate in any arrangements in which the company would agree to withhold producer compensation information from a customer, or disclose inaccurate producer compensation information to a customer. The Standard will disclose, where possible and if applicable, producer compensation for the customer's Schedule A (Form 5500). If a customer inquires about producer compensation, The Standard will provide the customer with a description of the applicable compensation arrangement the company has with the producer on the customer's business. This will include the amounts or methods for calculating the compensation to the extent practicable. The Standard will also encourage the customer to contact the producer for additional information.

The Standard will not agree to pay any compensation to a producer that is inconsistent with or not permitted by the applicable written request for proposal ("RFP"). If a producer requests compensation that is inconsistent with the applicable written RFP, The Standard will only agree to such a request if it has been expressly authorized by the customer, or written notification of the change is sent directly to the customer. If an RFP (written or oral) is silent as to producer compensation, The Standard will quote the case based upon the compensation requested by the producer, and disclose such compensation as indicated above.

Tying

The Standard will not agree to any "tying" arrangements with producers pursuant to which a producer will agree to sell a product of The Standard on the condition that the company agrees to purchase reinsurance, or any other product or service, from the producer.

Loans

The Standard will not provide advance payments or otherwise make loans to producers. This prohibition does not include the business practice of making regularly scheduled estimated compensation payments to producers and subsequently making adjustments to such payments based on actual or reconciled accountings.

Gifts

The Standard will not offer producers any gratuity, entertainment or hospitality if others could reasonably view acceptance as obligating the producer to improperly give business or other special considerations to The Standard. The offer of any gift to a producer should be disclosed to a supervisor.

Regulatory Reform

The Standard will support regulatory reform to the extent it would better serve our customers, result in more transparent disclosure and level competition.

Miscellaneous

This Statement of Compensation Principles is applicable to the The Standard's Employee Benefits Division and The Standard Life Insurance Company of New York, and shall be effective as of January 1, 2005. No change to this Statement of Compensation Principles shall be considered effective unless in writing and approved by the Senior Vice President, Employee Benefits Division.