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2014 004 Ordinance
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2014 004 Ordinance
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Last modified
11/19/2018 4:10:48 PM
Creation date
9/11/2018 4:25:00 AM
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Template:
Legislation-Meeting Minutes
Document Type
Ordinance
Number
004
Date
3/17/2014
Year
2014
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INTERMEDIARY AND PRODUCER COMPENSATION NOTICE <br />MetLife enters into arrangements concerning the sale, servicing and/or renewal of MetLife group <br />insurance and certain other group-related products Products) with brokers, agents, consultants, third- <br />party administrators, general agents, associations, and other parties that may participate in the sale, <br />servicing and/or renewal of such Products (each an Intermediary ). MetLife may pay your Intermediary <br />compensation, which may include base compensation, supplemental compensation and/or a service fee. <br />MetLife may pay compensation for the sale, servicing and/or renewal of Products, or remit compensation <br />to an Intermediary on your behalf. Your Intermediary may also be owned by, controlled by or affiliated <br />with another person or party, which may also be an Intermediary and who may also perform marketing <br />and/or administration services in connection with your Products and be paid compensation by MetLife. <br />Base compensation, which may vary from case to case and may change if you renew your Products with <br />MetLife, may be payable to your Intermediary as a percentage of premium or a fixed dollar amount. In <br />addition, supplemental compensation may be payable to your Intermediary. Under MetLife's current <br />supplemental compensation plan, the amount payable as supplemental compensation may range from <br />0% to 8% of premium. The supplemental compensation percentage may be based on: (1) the number of <br />Products sold through your Intermediary during a prior one-year period; (2) the amount of premium or <br />fees with respect to Products sold through your Intermediary during a prior one-year period; (3) the <br />persistency percentage of Products in force through your Intermediary during a prior one-year period; (4) <br />premium growth during a prior one-year period; (5) a fixed percentage of the premium for Products as set <br />by MetLife. The supplemental compensation percentage will be set by MetLife prior to the beginning of <br />each calendar year and it may not be changed until the following calendar year. As such, the <br />supplemental compensation percentage may vary from year to year, but will not exceed 8% under the <br />current supplemental compensation plan. <br />The cost of supplemental compensation is not directly charged to the price of our Products except as an <br />allocation of overhead expense, which is applied to all eligible group insurance products, whether or not <br />supplemental compensation is paid in relation to a particular sale or renewal. As a result, your rates will <br />not differ by whether or not your Intermediary receives supplemental compensation. If your Intermediary <br />collects the premium from you in relation to your Products, your Intermediary may earn a return on such <br />amounts. Additionally, MetLife may have a variety of other relationships with your Intermediary or its <br />affiliates that involve the payment of compensation and benefits that may or may not be related to your <br />relationship with MetLife (e.g., consulting or reinsurance arrangements). <br />More information about the eligibility criteria, limitations, payment calculations and other terms and <br />conditions under MetLife's base compensation and supplemental compensation plans can be found on <br />MetLife's Web site at www.metlife.com/brokercompensation. Questions regarding Intermediary <br />compensation can be directed to ask4met@metlifeservice.com, or if you would like to speak to someone <br />about Intermediary compensation, please call (800) ASK 4MET. In addition to the compensation paid to <br />an Intermediary, MetLife may also pay compensation to your MetLife sales representative. Compensation <br />paid to your MetLife sales representative is for participating in the sale, servicing, and/or renewal of <br />Products, and the compensation paid may vary based on a number of factors including the type of <br />Product(s) and volume of business sold. If you are the person or entity to be charged under an insurance <br />policy or annuity contract, you may request additional information about the compensation your MetLife <br />sales representative expects to receive as a result of the sale or concerning compensation for any <br />alternative quotes presented, by contacting your MetLife sales representative or calling (866) 796-1800. <br />L0813337599 [exp0914][All States]
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