Compensation Disclosure

Deposit Solution and its members may receive compensation in a number of ways, including commissions and fees paid by HCC Surety Group, a subsidiary of HCC Insurance Holdings, Inc. and the underwriter of the surety bonds, calculated as a percentage of premiums. These commissions and fees are related to the marketing, distribution, and administration of surety bonds and/or other services Deposit Solution provides.

Deposit Solution may also be eligible to receive other forms of compensation such as incentive or contingency payments or bonuses and/or supplemental commissions from insurance companies, intermediaries (which may be affiliated with Deposit Solution) or other third parties as a result of brokering surety bonds (collectively, “Additional Compensation”). Contingency payments or bonuses are based on the overall performance of a partial or entire book of business Deposit Solution places with an insurance company, and Deposit Solution’s eligibility and the amount of any such compensation may vary depending on the line of business and a number of “contingent” factors related to future performance such as overall premium volume, premium growth year-over-year, persistency, profitability and/or retention targets set by the carrier. As such, a contingency payment received by Deposit Solution from an insurer is difficult to tie back to any particular client placement. Additional Compensation in the form of supplemental commission is established at the beginning of each calendar year based on Deposit Solution’s historical and current performance typically measured using some or all of the same performance factors by which contingency payments are calculated. Deposit Solution may also receive service fees from insurers for consulting and/or administration services specific to a carrier. These service fees are not tied to, dependent on or identified with any particular client or insurance placement.

Deposit Solution may also receive interest or investment income on funds temporarily held by it, such as premiums or return premiums, service fees or other compensation from premium finance companies for administrative services provided to or on behalf of premium finance companies relative to the financing of client insurance premiums.

Please contact your Deposit Solution representative if you have specific questions regarding the compensation Deposit Solution and its members may receive as it relates to your account.