After Broker Compensation Disclosure requirements went into effect late last year, many health and life insurance agents will now have to disclose to their clients the commissions they receive in certain circumstances. These new laws might leave you feeling overwhelmed. How can you quickly know when you have to disclose? What information do you need to include? How can you run disclosure reports? Luckily, this is all possible with the help of AgencyBloc.

AgencyBloc's Commissions+ solution can help you easily process your commission payments and uncover missing commissions. Plus, AgencyBloc has the tools you need to help you disclose compensation information (including a report that exports the exact data you need). This infographic explains what the Broker Compensation Disclosure is, the information you need to disclose, and how AgencyBloc can help you manage it all.

What You Need to Know About the Broker Compensation Disclosure infographic

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What is Broker Compensation Disclosure?

Brokers, agents, and/or consultants need to complete the Broker Compensation Disclosure form for every new contract or renewal for which they expect to earn $1,000 or more annually for combined health, dental, vision, and other benefits administration (anything covered by ERISA) during the plan term and then provide it to customers.

What Are You Required to Disclose?

Generally speaking, the law requires you to disclose any indirect or direct compensation or commission you’re expected to receive over the year that exceeds $1,000. The form should include:

  • Description of provided services
  • Statement that you, the affiliate, or the subcontractor is providing plan fiduciary services
  • Description of direct compensation
  • Description of indirect compensation
  • Description of compensation on a transaction basis (commissions, finders fees, incentives, etc.)
  • Description of compensation for termination of contract and prepaid amounts

How to Manage Broker Compensation Disclosures in AgencyBloc

Step One

Educate yourself on the disclosure guidelines and view an example disclosure form. Stay informed by accessing resources and materials in AgencyBloc that help you stay compliant.  For more information on the Broker Compensation Disclosure, check out these resources:

Step Two

Use automation to set reminders for your team to disclose and make it a part of your sales process. For new contracts, use Automated Workflow in AgencyBloc to automatically create an activity or to-do when an individual’s status changes to prospect, for example. Renewals can use the same process, except you can schedule the activity or to-do to notify you a certain number of days (i.e., 60 days) in advance.

Step Three

Use commission tools to identify customers who require a disclosure; run the report and complete the form. AgencyBloc has preset reports that can tell you who in your customer base will most likely need a disclosure.

Step Four

Record and track disclosure activity within the client’s profile to centralize information. Attach proof (email, completed form, etc.) within AgencyBloc that shows you sent the disclosure to your client. If you ever need to reference it, you know exactly where to find it.

Complying with the Broker Compensation Disclosure doesn’t need to be difficult. You can be efficient and ensure that nothing falls through the cracks with an agency management system (like AgencyBloc!). Whether it’s running disclosure-specific reports or setting up Automated Workflows, using these tools can make disclosing a breeze. Ready to see it for yourself? Request a live, 1-on-1 demo!

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Posted by Sarah Rosonke on Thursday, May 19, 2022 in Commissions Reporting

  1. commissions
  2. selling

About The Author

Sarah Rosonke

Sarah is the Design and Content Specialist at AgencyBloc. She creates and designs helpful resources to support life and health insurance agencies in growing and automating their business. Favorite quote: "You'll never do a whole lot unless you're brave enough to try." —Dol ... read more