Employee benefits insurance overview

Group benefits disclosure policy

Transamerica Employee Benefits (TEB) is a unit of Transamerica Life Insurance Company and Transamerica Financial Life Insurance Company (collectively “Transamerica”). Transamerica markets and administers voluntary insurance benefits through a network of independent insurance agents who are appointed to sell Transamerica products and those of other carriers. Agents receive various forms of compensation from Transamerica for the sale and servicing of its policies. Transamerica’s compensation arrangements with its agents are conducted with honesty, fairness, and integrity. Transamerica realizes that having trusted relationships with its agents and customers is essential. In order to ensure that this trust continues, and to address agent compensation issues within the insurance industry, Transamerica has outlined its policy on agent compensation below. Transamerica’s policy supports transparency and full disclosure of agent compensation to our customers and prospective customers. In addition, we have put controls in place to facilitate this disclosure and obligate our agents to disclose compensation information to customers in the following situations: 1) when asked by a customer; 2) when receiving both a fee from the customer and compensation from Transamerica; and 3) when otherwise required by law. Agents must comply with all applicable laws in the sale of Transamerica products, including any pertaining to the disclosure of compensation information. The Group Benefits Compensation Disclosure Notice (below) of Transamerica Employee Benefits describes the various means by which agents may be compensated for the sale of Transamerica products. It is the responsibility of your agent to share specific information with you concerning his or her compensation arrangements with Transamerica. Accordingly, please direct any compensation disclosure questions directly to your agent.

COMPENSATION DISCLOSURE NOTICE TO ALL POLICYHOLDERS

Agents who sell and service our products are paid a commission. It varies by the type of insurance policy sold and the state where the policy was sold, and is based on a percentage of the premium received in the first year, and at policy renewal. Agents may receive advances or loans against anticipated commissions for cases sold or to be sold. These advances may or may not require the payment of interest, depending on the agent’s total business and historical experience with TEB. Agents may receive other compensation from TEB in the form of cash or non-cash awards or prizes based upon a variety of factors that may include the level of premium written or earned, persistency and growth of premium or other performance measures. Agents who manage, supervise or recruit other agents or wholesale our products and services to other agents may receive commission overrides on business that results from their efforts.

Some of our agents may receive additional payments for providing services in connection with the administration of our products. Fees for such services may be calculated on a per policy or per certificate basis or upon the premium volume associated with a specific case. TEB may additionally reimburse these agents/administrators for certain expenses, such as the cost of mailings. Agents may occasionally obtain exclusive rights to market TEB products or services to agents, employers, employee or member of associations or unions. Certain groups or associations may also agree to endorse TEB’s products to their members. TEB may pay a fee for these exclusive marketing rights or endorsements. See your proposed policy documents or other policy certificate package for more information on any such arrangement.