Lambton Mutual: Our Privacy Policy

Your Rights

Conflicts Of Interest

Disclosure

Disclosure of Distributor Compensation & Financial Links

Lambton Mutual Insurance Company offers property and casualty insurance products through a combination of independent brokers and exclusive agents (agents who act only for Lambton Mutual). A fundamental requirement of the contract of insurance is that both parties (you and us) act in utmost good faith at all times. Further, our distributors must act with honesty, integrity and hold themselves to a high ethical standard in their dealings with both the customer and the insurer.

Our distributor agreements govern how and when they will be compensated for business placed with Lambton Mutual. We compensate our distributors in two ways: Firstly, we pay a fixed rate of commission expressed as a percentage and based on the annual policy premium. The rate of commission varies depending on the line of business as illustrated in the table below. Secondly, we offer a contingent profit commission program that rewards the efforts of those distributors who write a profitable book of business. Lambton Mutual's contingent profit commission is potentially payable after the end of a year and it is based on specific criteria that recognize the profitability of a distributor over a three-year period. Profitability is measured by comparing premium revenue against expenses (e.g. Claim costs, commission expense, reinsurance costs, etc.). In 2007, we paid profit commissions equal to 0.88% of our total written premiums. Lambton Mutual Insurance Company does not have financing arrangements with any of its distributors.

As a mutual insurance company, we are owned by our policyholders and do not have shareholders. As such, any profit is either reinvested back into the company, or, from time to time, may be returned to our policyholders. Lambton Mutual is dedicated to providing high quality insurance products at cost to our policyholders through prudent management practices, effective underwriting and loss prevention measures.

Line of Business	Base Commission	Estimated percentage of 2007 Total Written Premium
Automobile	12.5%	49.8%
Property	15%-20%	41.8%
Liability	15%-20%	8.4%