39 / 150
PAGE 38
Unipres U.S.A. Employee Benefits Brokerage and Consulting Services RFP
Section VII Compensation
1. Discuss the various methods by which you are compensated by your clients (i.e. fee-for-service, retainer, etc.).
Specify your preferred means of compensation and explain why this method is preferred.
CBIZ develops a compensation structure in alignment with the client’s business objectives and is flexible in the
structure. While there are countless compensation models, in general the following represent the most common.
Commissions:
Commission dollars are paid to CBIZ by the insurance carriers for all lines of coverage. Commissions are built into
the premium dollars. Many clients still compensate CBIZ in this manner.
Capped Commissions:
Compensation is still paid to CBIZ through the carriers but we put a cap either per member per year or capped out
on a flat fee basis (i.e. annual maximum cap of commissions not to exceed a specific dollar amount).
Flat Fee Basis:
Compensation paid directly to CBIZ by you on a monthly, quarterly or annual basis. Insurance products for all lines of
coverage would be quoted “net of commissions” in this case.
Combinations:
CBIZ is open to a combination of commission and fees. However, our preferred approach is to determine the
appropriate overall compensation level, and then determine the most efficient method to obtain those dollars.
As needed, we will provide a report of revenues received from working and/or serving as UNIPRES’s benefits
brokerage and consulting partner. As part of our engagement we would expect to negotiate a service and fee
agreement which details the terms and conditions under which we are compensated. As part of our standard scope
of services we provide an annual stewardship report. The annual revenue summary in stewardship reports may
serve to fulfill any accounting or reporting requirements.
Voluntary Benefits:
Certain voluntary or 100% employee paid benefits such as accident, cancer, critical illness, identity theft, long-term
care, etc. have commissions built into the product structure. At CBIZ we believe in reinvesting these commission
dollars through “co-broker” partnerships thus resulting in enrollment, communication and administrative processes
at a subsidized cost. In the event there are commissions in excess of enrollment expenses, CBIZ will retain these
dollars.