The Principal Financial Group supports disclosure by agents and brokers of contingent compensation and has adopted an interim policy in this regard. Under the policy, agents and brokers are to provide the customer with written disclosure that they may receive contingent compensation (cash or otherwise) from the insurance carrier for the sale of the carrier's product. The disclosure should take place before or at the time the customer signs the formal application. This policy applies whether the compensation is paid by The Principal® or another insurance carrier through Preferred Product Network, Inc. A sample disclosure form is available for use by brokers. Career agents are required to use the disclosure form.
The customer's signature is required only when the agent or broker receives compensation directly from the customer in addition to the compensation the agent or broker receives from the insurance company. This does not include premium payments made payable to the insurance company by the customer.
In the case of group annuity contract sales, agents and brokers do not need to use the new disclosure form because a commission acknowledgement form signed by the customer is already required for these sales. Agents and brokers should continue to use these commission acknowledgement forms. The disclosure language in these forms has been modified to meet the current disclosure policy.
If agents or brokers have questions about the disclosure policies, they should visit Principal eFinancial ProfessionalSM or call the Marketer Support Hotline, 800-654-4278.
Download the compensation disclosure form (PDF: 15KB).