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CONF I DENT I A L │ PAGE 37
Benefits Consulting Services RFP
6. Proposed Fees for Services
a. Explanation of compensation plans for your firm under this proposal, including all services to be covered
by that fee.
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.
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 Unity’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.
b. The proposal should contain the proposed fee for services in either a fixed dollar amount or as a
percentage of premiums paid for coverage. Fees are to be maintained at the proposed level unless
approval is given by Unity for a change in the fee structure or level. Include additional fees your firm may
receive from the servicing of our business.
CBIZ will accept the compensation that is being paid to the current broker. This would include medical, dental, vision,
life insurance and any voluntary programs.