Disclosure of Compensation Agreements

The B & G Group, Inc. (“B&G”) and its affiliated entities (it’s producers) secures and otherwise facilitates the purchase of insurance coverage for its policyholder clients from a variety of insurance carriers and group benefits providers (collectively “carriers”) and sometimes engages the services of other entities in connection with the insurance of such coverage.

Insurance producers are authorized by their license to confer with insurance purchasers about the benefits, terms and conditions of insurance contracts; to offer advice concerning the substantive benefits of particular contracts; to sell insurance; and to obtain insurance for purchasers. The role of the producer in any particular transaction typically involves one or more of these activities.

In most instances, B&G is primarily compensated for the insurance brokerage services that it provides to its policyholder clients through commission payments that are based on the premium charged, and paid for, by the issuing carrier for each policy secured for B&G’s clients. The percentage of these commissions varies by insurance carrier and policy type. In addition, B&G has entered into contingent compensation arrangements with insurance carriers based on circumstances, including without limitation, the overall volume of premiums paid to or policies issued by or through a particular insurance carrier for B&G’s clients; the overall growth, persistency and/or retention of the premiums paid by B&G’s clients to or through a particular insurance carrier; and, in certain cases, the profitability of the total premium (i.e., claims history on the coverage) paid by B&G’s clients to or through a particular insurance carrier.

Documentation currently in B&G’s possession evidencing B&G’s current compensation agreements with the aforementioned carriers is available for all policyholders’ review at B&G’s corporate office; however, if those policyholders or their representatives have any additional questions or require any other information regarding any of the compensation received by B&G for any of its insurance brokerage services, please do not hesitate to contact Mr. Evan Bower.