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Kindly, note that there may be instances where in the course of performing advisory services a client’s need for life insurance, health insurance, or disability insurance is uncovered. At such time, the firm’s agent will disclose to the client that the client is not obligated to purchase the coverage through the agent of the firm and that if the client decides to purchase the coverage through the firm’s agent, the commission received for the sale of the coverage will be compensation due the agent under separate insurance distribution contracts that are unrelated to any existing agreement for investment advice between the client and the firm. In simple terms, the subsequent issuance of any insurance contract purchased through a firm’s agent who is also a licensed insurance agent under a separate contract with the insurance company for distribution of its insurance products will result in the payment of a commission to the insurance agent that is unrelated, separate, and distinct from the advisory fees paid by the client to the firm under the existing adviser agreement. |
